There are those who believe that The constant tariff threats of Donald Trump and his sudden change of course, without prior notice, could be a strategy to shake the markets and even have some control over their behavior.
And it is that the press conferences and their social Truth network have become a tool that, without exaggeration, can boost the movement of millions and millions of dollars in minutes in the world stock market. After that, many companies have benefited in the stock market.
For example, the biggest target of its tariffs has been China. He imposed a 145%tariff, keeping investors in uncertainty, but from one moment to another changed his mind.
In a recent press conference at the White House, he provided some statements that showed a moderation in his speech against tariffs against China.
He ruled out that tariff and said he will seek to negotiate with China. “They are going to be very friendly, and we’ll see what happens,” he said.
That was not all, after sowing doubts about a possible dismissal of the president of the Federal Reserve, Jerome Powell, also ruled out any departure from that class on Tuesday.
At the closing of the April 22 market: The Dow Jones index climbed 2.66%, Nasdaq Composite recovered 2.71%, and the S&P 500 won 2.46%.
The climb after brake on tariffs
A small Trump announcement in Truth Social was enough to end a black day in the New York Stock Exchange and motivate millions of investors to bet on Wall Street titles.
That’s right, that happened last April 9, Trump published: “It’s a great time to buy !!! Djt.” And began to lift the stock market movements.
Later came the announcement of a freezing of tariffs which announced again and again against the world. It seemed that the president was not going to shake his hand, but surprisingly changed his mind, which ended up shooting Wall Street.
Only in the S&P 500 indicator, which measures the 500 largest companies in the United States, had an amazing recovery. According to France 24 data, it grew 9.5% at the close of the market.
It was the recovery of about 4 billion dollars, that is, 70% of the capitalization that had lost that indicator in the four days before the investor fear for the commercial war.
The situation was such that Alexandria Ocasio Cortez, a member of the United States Representatives Chamber, said in his X account that any congressman who bought shares in the last 48 hours (April 9) should reveal it.
“I was listening to some interesting conversations on the floor. The deadline for disseminating information is May 15. We are about to discover some things. It is time to prohibit the use of privileged information in Congress, ”he said.
Crazy theory?
Others believe that Trump’s behavior is more due to a political strategy, called by some theorists such as the “Loco Theory”, which Richard Nixon used.
A BBC News article talks about the subject and explains whatE In that strategy the president presents himself as unpredictable and capable of anything to intimidate his adversaries.
Instead of the nuclear button, Trump applies this strategy with customs taxes, using them as a pressure tool in both foreign policy and internal issues and immigration or fentanyl traffic.
That is why their aggressive and sudden statements generate uncertainty in the markets and among the allies, which causes other commercial partners and companies to have difficulties to anticipate or keep confidence to the US.
During his mandates, Trump has imposed and threatened with high tariffs to multiple countries. To right and sinister he has used these threats. And then he presumed that these countries constantly called him to ask for negotiations.
For now, it is likely that President Gringo maintains his strategy. The severe threats could be maintained and re -changed without any advance. The truth is that the stock market will continue in uncertainty to Trump’s threads.
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