Trump may tank the economy even further unless he backs off tariff threat: expert
The market-wide selloff on Tuesday should be a sign to President Donald Trump that he needs to back off his tariff threats, according to one expert.
The stock market sank on Tuesday after Trump announced new 10% tariffs on goods from certain E.U. countries until the U.S. annexes Greenland. Those tariffs are scheduled to increase to 25% if the issue remains unresolved by the summer.
The DOW Jones Industrial Average lost more than 870 points on Tuesday. The tech-heavy NASDAQ 100 declined by 561 points, and the S&P 500 lost 143 points.
JPMorgan Asset Management’s Bob Michele told Bloomberg News that the markets haven't reacted like this since Trump announced his Liberation Day tariffs in April 2025. He had to walk back those threats because of the markets.
“Things are a bit chaotic and the markets do feel a bit panicked,” said Michele in an interview with Bloomberg. “The market had a fit in April and then they backed off of a lot of things and then calm ensued. We need to hear some of the same kinds of things.”