President Donald Trump is taking to Truth Social to reassure Americans about the state of the economy, urging calm as global markets grapple with the fallout from his sweeping tariff policies. In a series of posts at 9:33 AM and 9:37 AM PDT on April 9, 2025, Trump writes, “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” and follows up with, “THIS IS A GREAT TIME TO BUY!!! DJT.” The messages come at a critical juncture, as the U.S. economy faces heightened uncertainty following Trump’s recent tariff announcements, including a 90-day pause on most tariffs lowered to 10% and a dramatic escalation of tariffs on China to 125%. While Wall Street experiences a significant rally today, with the Dow Jones Industrial Average surging 2,541.92 points, the broader economic landscape remains fraught with concerns over inflation, recession risks, and global trade tensions.
Trump’s optimistic tone contrasts sharply with the economic turbulence that has defined the past week. On April 2, 2025, the president announced a broad set of tariffs targeting imports from 185 countries, including a 104% duty on Chinese goods, as part of his “reciprocal trade” agenda aimed at addressing trade imbalances and boosting domestic manufacturing. The move triggered immediate global retaliation, with China raising its tariffs on U.S. goods to 84% on April 8, up from a previously planned 34%, and the European Union approving counter-tariffs on €21 billion of U.S. products, set to take effect on April 15. The S&P 500, a key benchmark for many 401(k) retirement accounts, lost $5.8 trillion in value over four days, dropping 18.9% from its February peak and flirting with bear market territory by April 7. The Nasdaq Composite, already in a bear market, fell 24.3% from its December high, reflecting widespread investor fears of stagflation—a scenario where economic growth stalls while inflation surges.
The market’s reaction to Trump’s tariff pause announcement today is a stark reversal. The Dow’s 6.73% increase to 40,180.98 marks one of its largest single-day gains in history, while the S&P 500 climbs 7.87% to 5,375.03, its best day in five years, and the Nasdaq jumps 10% to 16,794.65, its strongest performance since 2008. Technology stocks lead the rally, with Tesla, Nvidia, and Apple each gaining over 10%, and the VanEck Semiconductor ETF rising more than 14%. The White House, through Press Secretary Karoline Leavitt, attributes the surge to Trump’s strategic approach, with Leavitt mocking reporters’ earlier fears: “Clearly, some of you missed the Art of the Deal.” She notes that over 75 countries have reached out to negotiate trade deals, prompting the 90-day pause for non-retaliating nations, while the 125% tariff on China reflects its refusal to cooperate.
Despite the market rally, economic experts and political figures express deep concern. JPMorgan Chase CEO Jamie Dimon warns that a recession is “a likely outcome” of Trump’s tariff policies, a sentiment echoed by Goldman Sachs, which estimates a 1% decline in GDP growth for 2025. Senator Elizabeth Warren (D-Mass.) criticizes the tariffs as causing “enormous damage” to the U.S. economy, pointing to anticipated price increases and inflation. She highlights an “on-the-water clause” in the updated U.S. Customs guidance, which exempts cargo in transit before April 9 from the new tariffs until May 27, but warns that businesses are already raising prices in anticipation. Michigan Governor Gretchen Whitmer, a Democrat, describes the economic fallout in her state as a “triple whammy” of higher costs, fewer jobs, and more uncertainty, particularly for the auto industry, which comprises 20% of Michigan’s economy.
Trump’s economic strategy has been a cornerstone of his political identity since his first term, where he imposed tariffs on Chinese goods in 2018, leading to a phase-one trade deal in 2020. During his 2024 campaign, he promised to “make America affordable again,” often highlighting the high cost of groceries by displaying items like eggs and bacon at rallies. However, his tone has shifted since taking office. In a March 2025 interview on Fox News, Trump acknowledged a “period of transition,” refusing to rule out a recession, a stark contrast to his campaign pledges of immediate economic relief. The tariff rollout on April 2, which included rates as high as 49% on countries like Cambodia, has drawn criticism for its lack of focus, with some questioning the logic of targeting small nations and even uninhabited territories like the Heard and McDonald Islands in Antarctica with a 10% tariff.
Public sentiment, as reflected in recent polls, shows growing unease. An Economist/YouGov poll conducted from April 6 to April 8 reveals that 51% of Americans disapprove of Trump’s job performance, a five-point increase from the previous week, with 56% saying his tariff policies have “gone too far.” Only 41% approve of his handling of jobs and the economy, a decline from earlier in his term. Posts on X indicate a polarized response, with some users accusing Trump of manipulating the stock market, while others, including the White House’s official account, celebrate the tariff pause as a victory. The White House’s Truth Social post at 10:42 AM PDT today underscores the immediacy of the policy shift, stating, “125% TARIFF ON CHINA, 90-DAY PAUSE & LOWERED 10% RECIPROCAL TARIFF FOR OTHER COUNTRIES, EFFECTIVE IMMEDIATELY.”
Breaking news updates highlight the global ramifications of Trump’s policies. The EU’s retaliatory tariffs, affecting U.S. products like soybeans and motorcycles, are set to roll out in three waves, though Brussels expresses a preference for negotiated outcomes. China’s Finance Minister vows to “fight back,” with analysts describing the U.S.-China trade war as a “game of chicken.” Treasury Secretary Scott Bessent is reportedly meeting with a Japanese delegation soon, raising hopes for early trade deals with allies like Japan and South Korea. However, the 10-year Treasury yield climbs to 4.4% today, a 15-basis-point increase, signaling investor unease despite the stock market rally, with the 30-year yield rising to 4.8%.
Historically, Trump’s tariff approach builds on his first-term policies but with greater intensity. His 2018 tariffs on China led to market volatility but also forced negotiations, resulting in the 2020 phase-one deal. Critics, however, point to the broader economic context: the U.S. economy Trump inherited from President Biden was relatively strong, with low unemployment at 4.1% and inflation that had declined significantly from its 2021-2023 peak, though still above the Federal Reserve’s target. Under Biden, the Dow Jones Industrial Average rose 36% and the S&P 500 increased 53%, despite Trump’s warnings during the 2024 campaign that a Biden presidency would crash the market. Economists like Mark Zandi of Moody’s Analytics gave the Biden economy an “A+” rating in late 2024, citing record job growth and small business applications.
Trump’s current policies, however, risk undoing some of that stability. Independent economist Peter Boockvar notes the volatility in Treasury yields, with the 10-year yield’s 51-basis-point swing over three days marking the largest since December 2001. Some Wall Street traders warn of a looming recession, with Morgan Stanley analysts lowering expectations for bank earnings due to tariff-related headwinds. The tariff escalation with China is expected to hit U.S. consumers hard, with one analyst predicting that an iPhone produced in the U.S.—as suggested by Leavitt—could cost $3,500. Meanwhile, Trump continues to push for a massive reconciliation bill, urging House Republicans on Truth Social to pass a “big, beautiful bill” of tax breaks and spending cuts, claiming it is essential to his economic agenda.
As the U.S. navigates this economic storm, Trump’s message of reassurance aims to steady the ship. Whether his optimism will translate into sustained economic growth or further turmoil remains to be seen, but for now, the president is doubling down on his belief that tariffs will make America “bigger and better than ever before.”
Sources:
- Video: Karoline Leavitt Mocks Reporters’ Fears Over Tariff Battle: ‘Clearly Missed The Art Of The Deal’
- Web sources: cnbc.com, politico.com, finance.yahoo.com, rollingstone.com, businessinsider.com, abcnews.go.com, nationalpost.com, investing.com, joemygod.com, newsweek.com, theguardian.com, whitehouse.gov, bloomberg.com, aa.com.tr, republicworld.com, cnn.com, nytimes.com, bbc.com
- Posts on X reflecting user sentiment and breaking updates
