Amid mounting criticism over plunging markets and global economic unease, US President Donald Trump has defended his aggressive tariff policy, insisting he “stands up for Main Street, not Wall Street.”
“I’m proud to be the President for the workers, not the outsourcers; the President who stands up for Main Street, not Wall Street; who protects the middle class, not the political class; and who defends America, not trade cheaters all over the globe,” Trump said in a post on Truth Social.
Wall Street’s wild ride
Trump’s comments came as US financial markets experienced another day of dramatic swings. The S&P 500, after soaring 4.1 per cent in early trade on Tuesday, quickly lost ground, tumbling to a 3 per cent loss before closing down 1.6 per cent. The index now sits nearly 19 per cent below its February peak.
The Dow Jones Industrial Average ended 320 points lower—down 0.8 per cent—after wiping out an earlier gain of 1,460 points. The Nasdaq Composite slid 2.1 per cent.
The extreme volatility echoed across global markets, with indices in Tokyo, Paris, and Shanghai posting morning rallies before analysts warned of further instability. Much of the chaos is tied to investor uncertainty over how far Trump will take his trade war—and for how long.
Tariffs at the center of economic anxiety
Trump’s sweeping tariffs, which are set to intensify, have unsettled investors and sparked fears of an economic downturn. Economists caution that if the trade restrictions linger, they could push the US into recession by raising consumer prices and disrupting global supply chains. A swift de-escalation through negotiations, however, could mitigate the damage.
Despite these warnings, Trump has shown no signs of backing down—even as top business leaders and political donors attempt to influence his decisions behind the scenes.
Business leaders hit a wall
In recent days, Wall Street billionaires and corporate CEOs have stepped up efforts to reverse the administration’s trade stance, but to little effect. Following Trump’s latest tariff announcement, banking executives—including JPMorgan Chase’s Jamie Dimon—met with commerce secretary Howard Lutnick in a closed-door session. Sources say Lutnick was unmoved.
Elsewhere, GOP megadonors and hedge fund tycoons have tried to sway the White House through calls to senior aides, including chief of staff Susie Wiles and treasury secretary Scott Bessent. These appeals, too, have fallen flat.
Some financial heavyweights have now gone public with their frustrations. Billionaire hedge fund manager William Ackman took to social media, warning, “The global economy is being taken down because of bad math,” and urged the administration to reconsider before “the President makes a big mistake.”
Oil trader Andrew Hall applauded Ackman for speaking out and called on other “financial titans” to do the same. “Where are the other ‘financial titans’? Why aren’t they speaking up?” Hall posted.
Growing warnings from Wall Street
Dimon, in a message to investors, noted that the trade war was already denting consumer sentiment and investor confidence, and could slow economic growth. While he avoided forecasting a full-scale recession, he acknowledged the growing risk.
Laurence D Fink, CEO of investment giant BlackRock, was more blunt during an address at the Economic Club of New York. “The economy is weakening as we speak,” he warned, citing even toy prices—like Barbie dolls—as examples of looming inflation due to tariffs.
Fink said many CEOs believe the US may already be in a recession, highlighting the broad economic toll the tariffs could take if they remain in place.
A shift in Trump’s approach—or not?
For a brief moment Monday, there was speculation that Trump might soften his stance, as reports surfaced suggesting a potential pause in tariffs. That sparked a short-lived market rally. But the White House quickly denied the rumors, and Trump reiterated his commitment, sending markets tumbling again.
By the end of the day, the S&P 500 had dropped another 0.2 per cent, bringing it nearly 18 per cent below its mid-February high—dangerously close to bear market territory.
Country by country list of new tariffs announced by Trump
White House defends the policy
In a statement, White House spokesperson Kush Desai said the administration remains in constant dialogue with business leaders and the public about major policy decisions. “The only special interest guiding President Trump’s decision-making, however,” he continued, “is the best interest of the American people — such as addressing the national emergency posed by our country running chronic trade deficits.”
Despite increasing calls for course correction, Trump appears determined to stand his ground—setting the stage for further clashes with Wall Street, allies abroad, and possibly, economic headwinds at home.