Article by Simone Roffi
Record Losses: How Trump’s Tariffs Triggered a Financial Earthquake
On April 2, 2025, President Donald Trump declared “Liberation Day,” announcing sweeping tariffs on nearly all imports into the United States. The result was a financial shockwave: the Dow Jones Industrial Average plummeted by over 4,000 points within 48 hours, marking the largest two-day point drop in its history. The S&P 500 and Nasdaq fell by 10% and 11% respectively, wiping out more than $6.6 trillion in market value. Global markets followed suit, with Hong Kong’s Hang Seng Index tumbling by 9.2%. These numbers reflect the sheer scale of panic triggered by a single policy announcement.
Market Volatility and Uncertainty Fueled by Presidential Statements
Following the announcement, Trump took to Truth Social, urging Americans to “BE COOL!” and calling it a great time to buy stocks. However, the markets didn’t echo his optimism. The CBOE Volatility Index (VIX), often referred to as Wall Street’s “fear gauge,” spiked to more than double its historical average, signaling deep investor’s anxiety. Meanwhile, China responded with aggressive countermeasures, including tariffs up to 125% on U.S. goods. The growing unpredictability of these political moves has further heightened global economic uncertainty and shaken investor’s confidence.
The Thin Line Between Economic Policy and Market Manipulation
Trump’s ability to move markets so dramatically has raised questions about the boundaries of market manipulation. In countries like Italy, the crime of market manipulation—or “aggiotaggio”—involves spreading misleading information or carrying out simulated operations that affect security prices. While there is no concrete evidence of Trump engaging in illegal manipulation, the tangible impact of his statements on stock prices has alarmed analysts and watchdogs alike. The mere perception of possible insider advantages or indirect manipulation can erode trust in the fairness of markets.
A Call for Transparency and Institutional Accountability
This situation underlines the crucial need for transparency and consistency in political communication, especially when it directly affects economic systems. Markets are sensitive not just to facts, but to tone, timing, and perceived intent. Sudden shifts in rhetoric can ripple through financial systems, affecting jobs, pensions, and investor’s savings. It is essential that political leaders weigh their words carefully and that regulatory bodies remain alert to ensure that market integrity is preserved for all participants.