Trump Defends Tariffs as Markets Plunge: 'Hang Tough, This Is an Economic Revolution'

Markets Plunge, Trump Stands Firm on Tariffs

President Donald Trump on Saturday urged Americans to “hang tough” as global markets reel from his sweeping new tariff policy. Writing on his platform Truth Social, Trump dismissed mounting concerns and called the current turmoil part of an "economic revolution" that will ultimately benefit the U.S. economy.

“Already, more than FIVE TRILLION DOLLARS OF INVESTMENT, and rising fast!” Trump posted. “THIS IS AN ECONOMIC REVOLUTION, AND WE WILL WIN.”

The remarks came after a second consecutive day of heavy losses on Wall Street. The Dow Jones Industrial Average dropped by 2,231 points (5.5%) on Friday. The S&P 500 fell by 5.97%, and the Nasdaq Composite entered bear market territory with a 5.82% decline. Collectively, U.S. stock markets have lost trillions in market capitalization in just 48 hours.

Tariff Plan Triggers Global Trade Alarm

Trump’s new economic strategy includes a baseline 10% tariff on all imported goods, with even steeper levies on countries like China. Just days earlier, the president announced an additional 34% tariff on Chinese imports, on top of a 20% tariff already in effect.

In response, China imposed its own 34% tariffs on U.S. goods, set to take effect on April 10. Industries hit hardest include agriculture, aerospace, and heavy equipment manufacturing — all major exporters to China.

Despite concerns about a potential global recession, Trump doubled down: “HANG TOUGH, it won’t be easy, but the end result will be historic,” he wrote, adding, “We will, MAKE AMERICA GREAT AGAIN!!!”

Trump Targets China: 'They Played It Wrong'

Much of Trump's rhetoric focused on China, with the president claiming the rival superpower had “panicked” in response to the U.S. tariffs.

“China has been hit much harder than the USA, not even close,” Trump asserted. “We have been the dumb and helpless ‘whipping post,’ but not any longer.”

The new measures, which the Trump administration branded part of a broader “Liberation Day” strategy, are intended to reduce America’s trade deficit, protect domestic industries, and incentivize companies to bring manufacturing back to the U.S.

But critics warn that the aggressive trade posture risks fueling inflation, disrupting supply chains, and prompting global retaliation.

Tech Giants and Retail Among Market’s Biggest Losers

Friday’s market turmoil hit key sectors, including banking, airlines, and technology. The so-called “Magnificent 7” tech stocks — Apple, Microsoft, Nvidia, Alphabet, Amazon, Meta, and Tesla — saw a combined $1.8 trillion wiped from their valuations over the last two days.

Retailers, clothing brands, and restaurant stocks also fell, though some, including Nike, managed to post modest gains.

The volatility was further underscored by the VIX index — Wall Street’s “fear gauge” — which spiked nearly 51% to reach 45.31 points, a level not seen since the 2020 COVID-19 crash.

Legal Challenge Questions Constitutionality of Tariffs

While Trump maintains that his tariff program will ultimately revitalize American industry, it is already facing legal scrutiny. A conservative legal group has filed a challenge, calling the China tariffs “an unlawful attempt” to make U.S. consumers pay higher taxes on imported goods.

The lawsuit adds another layer of uncertainty to an already volatile economic situation and underscores growing concerns about the domestic impact of Trump's aggressive trade policies.

As financial markets buckle under the weight of the tariff showdown and geopolitical tensions escalate, the U.S. faces a period of deep economic uncertainty. Whether Trump’s strategy delivers a manufacturing revival or triggers broader economic fallout remains to be seen.

Stay tuned to The Horizons Times for continuing coverage of global trade, U.S. economic policy, and market reactions to the unfolding tariff war.