Trump defends tariffs after markets plunge for second straight day: ‘Economic revolution

Trump Defends Tariffs After Markets Plunge for Second Straight Day: ‘Economic Revolution’

Former President Donald Trump has doubled down on his support for tariffs amid a steep market sell-off, insisting that his proposed economic policies, including broad tariffs on foreign imports, are key to what he called an “economic revolution” for the United States.

Markets closed sharply lower for the second consecutive day on Friday, with the Dow Jones Industrial Average shedding over 800 points, and the S&P 500 and Nasdaq following suit. Investors cited mounting concerns over Trump’s recent comments about reintroducing sweeping tariffs—potentially up to 10% on all imported goods—should he return to office in 2025. The downturn reflected growing anxiety over the potential inflationary impact and global trade backlash that could result from such a policy.

Despite the turmoil on Wall Street, Trump remained defiant, framing the market volatility as a short-term reaction to what he believes will be long-term prosperity. Speaking at a rally in Michigan, Trump declared, “This is not just policy—it’s an economic revolution. We are taking back control of our economy, our industries, and our future.”

Trump’s comments come as his campaign increasingly emphasizes economic nationalism. His team argues that tariffs are necessary to counter unfair trade practices, particularly by China, and to protect American manufacturing jobs. “We are no longer going to be the piggy bank for the world,” Trump said. “Every other country puts their interests first. It’s time we do the same.”

Critics, however, warn that broad tariffs could reignite inflation, strain U.S. consumer wallets, and damage relationships with key trading partners. Economists say a 10% blanket tariff could drive up prices on thousands of goods, from electronics to clothing and food, just as inflation is beginning to cool.

“Tariffs are a tax on American consumers,” said Bethany Jacobs, senior economist at the Center for Global Trade. “It’s a short-sighted policy that ultimately hurts the people it’s supposed to help.”

Markets seem to agree. The recent sell-off is the most pronounced since last year’s inflation panic and suggests investors are recalibrating expectations in light of Trump’s rhetoric. The yield on 10-year Treasury bonds also jumped, a sign that traders anticipate higher inflation ahead.

Trump has long maintained that tariffs are an effective tool for negotiation and a means to rebuild American industry. During his presidency, he imposed tariffs on steel, aluminum, and hundreds of billions of dollars’ worth of Chinese goods, sparking a trade war that many experts say slowed global economic growth. Still, Trump views those measures as a success.

“We brought China to the table. We made them listen. We put America first,” he said Friday. “And we’re going to do it again—bigger, smarter, stronger.”

The Biden administration, while keeping some Trump-era tariffs in place, has largely tried to reduce trade tensions and pursue more targeted strategies. White House Press Secretary Karine Jean-Pierre declined to comment directly on Trump’s remarks but said the administration remains focused on stable growth, lowering inflation, and restoring global trade ties.

Trump’s comments have also caused friction within the Republican Party, where some lawmakers have voiced concern that a protectionist economic stance could backfire with key voters. “I understand the frustration with China,” said Senator Tim Scott (R-SC), “but blanket tariffs risk hurting our farmers, our manufacturers, and our consumers.”

Still, Trump’s message appears to be resonating with parts of the Republican base that feel left behind by globalization. “He’s the only one talking about putting America first, really doing it,” said rally attendee Cheryl Monroe of Lansing. “I don’t care what the markets do short term—we need someone who’ll fight for us.”

With the 2024 election on the horizon, Trump's tariff rhetoric is shaping up to be a central pillar of his campaign. Whether markets and voters buy into his vision of an “economic revolution” remains to be seen.