Donald J. Trump, 45th President of the United States, controversial. This follows his very public announcement on social media a few hours prior to a big turn-about on his trade policy. On Wednesday morning, at 6:11 AM ET, Trump posted on Truth Social that it was a “great time to buy,” raising eyebrows as the stock market prepared to open.
This turnabout on enforcement policy was one thing, but the timing of Trump’s post was no coincidence. He initially hiked tariffs on Chinese imports to 125% from the previous 104%. Next, he very quickly declared a truce on such trade wars, with a 90-day reprieve on new tariffs for all countries except China. This surprise announcement caused stock markets around the world to jump, with technology shares on the bill particularly helping to spur some impressive gains.
Its potential was reflected in massive stock price jumps immediately after the post went live. It’s no wonder stocks in the technology companies involved increased by 12% and 15% respectively. Moreover, shares of Trump Media & Technology Group, the parent company of Truth Social, jumped 22%. Analysts noted that this rapid rise in the market followed Trump’s announcement, which came just hours after his social media message.
Trump’s dual approach—an increase in tariffs followed by a sudden pause—has raised questions about the motivations behind his statements and decisions. Critics argue that his actions in office amount to insider trading. Critics—legitimate critics, as far as I can tell—say he could personally profit from shifting stock market investments related to his announcements.
Alexandria Ocasio-Cortez responded to the news, highlighting the dangerous precedent being set by Trump for the entire market using the government to retaliate against political opposition.
“I’ve been hearing some interesting chatter on the floor.” – Alexandria Ocasio-Cortez
Even as stock indexes exploded in response to this trade policy reversal, most investors and market analysts were incredibly cautious. They are concerned about the instability that will result from Trump’s erratic, impulsive and unstable judgment.