Unverified claim circulating: Trump's assertion linking impeachment to stock market performance is a fabrication
President Donald Trump announced a controversial tariff plan in April 2025, aiming to impose a 10% baseline reciprocal tariff on nearly all US imports from countries not under other sanctions. The plan escalated with tariffs on Chinese goods reaching as high as 145%, and US tariffs rising on steel, aluminum, and automobiles as well.
The economic implications of this plan were profound. The announcement led to a rapid stock market crash in 2025, with tariffs contributing to high economic uncertainty and market volatility. Supply chains were disrupted, leading to visible price increases and product shortages, as warned by CEOs of major U.S. retailers. Small businesses and consumers experienced higher costs due to tariffs, with many delaying major financial decisions because of the uncertainty caused by Trump's tariff policies.
A retaliatory tariff spiral worsened trade tensions, especially between the US and China, with tariffs peaking at record highs over a century, raising the average applied US tariff rate to 27%. The economic uncertainty negatively affected hiring and investment decisions by employers, further dampening economic growth.
The tariffs were met with widespread criticism. They were described as erratic and unpredictable, creating an "economy of uncertainty" that increased costs and risks for families, businesses, and workers. Business leaders widely expressed concern about the tariffs' impact on the U.S. economy, fearing inflation and supply chain disruptions. Analysts noted that while Trump portrayed tariffs as means to reduce the trade deficit and enhance national security, the actual economic damage in terms of trade wars, retaliations, and consumer costs may outweigh benefits.
Critics also pointed out that replacing income tax revenues with tariffs was unrealistic due to the limited scale of tariff revenue versus the broader fiscal needs. The unpredictability of tariffs also led to delayed trade resolutions, ongoing tensions with China, and potential risks to overall financial market stability, including concerns over Fed monetary policies influenced by this uncertainty.
Despite the criticisms, Trump compared his tariff plan to a surgical procedure that would be painful but deliver good results. However, economists universally agree that Trump's tariff plan makes no sense.
It's important to note that a viral tweet, claiming that if the Dow drops 1,000 points in two days, the President should be impeached immediately, is fake. The Dow Jones Industrial Average dropped over 1,600 points on Thursday.
As for the supposed tweet from Trump in 2012 about the Dow and impeachment, it was debunked by Snopes in 2018. Trump now primarily uses Truth Social for his tweets.
In a globalized economic environment, it's not advisable for one country to try to be completely self-sustaining and produce everything it makes. The U.S. could potentially become much poorer if Trump gets his way with the tariffs.
References:
- Economic Policy Institute
- Brookings Institution
- CNN Business
- The New York Times
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