Trump blames ‘globalists’ for $1 trillion market loss as tariff bet backfires

President Donald Trump bowed to pressure from a stock market slump that wiped out $1.1 trillion in a day, rolling back significant tariffs.

Trump had initially imposed 25% tariffs on all goods from Canada and Mexico. That policy is still displayed proudly on the White House fact-check page. At first, he assured his base and the nation that tariffs were the only way to stop fentanyl from entering the U.S. Changing course after accessing new information is not unusual for a president. However, Trump insists every new direction was always his original plan. So, it’s crucial to always capture the full picture using his own words.

The impending tariffs sparked backlash and led to a war of words with Canada. Trump dismissed the criticism as Prime Minister Trudeau’s desperate attempt to cling to power. He vowed to continue with tariffs until the U.S.’s neighbors found a way to stop fentanyl from crossing their borders. Yet, it only took a day for Trump to reverse course. Experts point to the stock market as the key reason behind his sudden U-turn.

When CNBC asked if the market slump influenced his decision, Trump vehemently denied it. He claimed he doesn’t even watch the market. Instead, he blamed faceless saboteurs, saying, “I think it’s globalists that see how rich our country’s going to be and they don’t like it. Big market out there. But again, they’ve been ripping off this country for years. And they’re going to do great — everyone’s going to do great. But we can’t let this continue to happen to America. Otherwise we’re not going to have a country any longer.” 

Commerce Secretary Howard Lutnick echoed this sentiment, stating that a 1% market swing is not a “driving force of our outcomes.” This contradicts Trump’s campaign rhetoric, where he often warned that markets would never tolerate “the radical lunatic left.” He even declared that playing games with markets was unacceptable.

According to the BBC, a White House official confirmed that 50% of Mexican imports and an additional 62% from Canada may still face tariffs. Whether the administration follows through remains unclear. Mexican President Claudia Sheinbaum responded diplomatically this time, thanking Trump and noting his promise to curb gun trafficking in the other direction. PM Trudeau was more defiant, warning that a trade war remains likely.

Canada may be preparing to go on the offensive if this trade war continues. Ontario’s Premier told CNN he still plans to impose a 25% tariff on the electricity supplied to over 1.5 million homes in New York, Michigan, and Minnesota. As a result, households in these states will likely see higher-than-usual electricity bills in the near future. This could push Trump to roll back even more of the remaining tariffs. And that’s not to mention the U.S. imports large amounts of food from Mexico, which could also be affected.

Trump’s administration now urges Americans to brace for short-term price hikes, asking for patience as he restores U.S. respectability on the global stage. His strategy relies on the belief that his showmanship will intimidate others into compliance. That clearly isn’t working in trade, and with China, it may fail under even more drastic stakes.