Trump doubles down on Chinese tariffs

The Trump trade war is in full swing, and it has everyone running for cover and taking credit for things they had nothing to do with.

While the market simmered down on Wednesday with a nice bounce back day, it took another hit on Thursday, which has some Democrats running off at the mouth.

Schumer Says Trump Feeling the Heat

Earlier this week, the market had a huge bounce back after Trump announced that he was going to suspend the tariffs against some countries.

This had nothing at all to do with pressure from Democrats and everything to do with dozens of countries reaching out to Trump to work out a deal.

That, however, did not stop Senator Schumer (D-N.Y.) from taking credit, stating, "We're going to talk about what just happened… Let's be clear. Donald Trump is feeling the heat from Democrats and across America about how bad these tariffs are. He is reeling. He is retreating, and that is a good thing.”

Senator Gillibrand (D-N.Y.) also took a shot at Trump, stating, "Volatility in our economy is so destructive. President Trump may have paused these reciprocal tariffs, but he's maintained a 10% tariff on all of them. Businesses will now not invest in new projects or expand their workforce because they have no idea of what is coming next.”

One-Day Surge

On Wednesday, the stock market had its biggest one-day surge in history, fueled by the news that Trump would pause some of the tariffs.

The market increased by 2,963 points, the S&P 500 by 9.52%, and the NASDAQ by 12.16%.

Chris Brigati, chief investment officer at SWBC, an investment firm in San Antonio, TX, stated, “The market’s move upward is violent, and speaks to how badly the market was looking for clarity on this issue.”

The joy did not last long, however, as the market took another four-digit downward turn on Thursday after Trump doubled down on China.

Double Them!

China is one of the few countries that is not backing down against Trump, announcing that it was going to increase its tariffs against the United States, so Trump responded in kind.

He stated, "At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable.”

Howard Lutnick also posted, “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency. The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.”

I continue to believe this will all settle down over the next few weeks, as the reality of this is that these markets need Americans to buy their products. We may be hurting right now, but these tariffs will crush the economies of these other countries. I am still preaching patience, as I firmly believe a year from now, we will all be in far better shape due to this stand.