Special Poll
Stocks closed the week deep in the red after a troubling new inflation report triggered a sharp selloff on Wall Street and many are now pointing the finger directly at President Trump, whose aggressive trade and tariff policies are being blamed for fueling the surge in prices and shaking investor confidence.
The Dow Jones Industrial Average dropped more than 715 points, or 1.7 percent, while the Nasdaq tumbled 2.7 percent and the S&P 500 fell 2 percent, marking one of the worst trading days this year. The selloff began shortly after the Commerce Department released its latest inflation data, showing a hotter-than-expected rise in consumer prices.
The Personal Consumption Expenditures (PCE) index, a key inflation gauge, rose 2.5 percent year-over-year, and 2.8 percent when stripping out food and energy. Monthly data showed core PCE jumping 0.4 percent, stoking fears that inflation is not only lingering but intensifying.
“We are moving in the wrong direction,” warned James Knightley, chief international economist at AIG. “Tariffs threaten higher prices, which mean the inflation prints are going to remain hot. This will constrain the Fed’s ability to deliver further interest rate cuts.”
Markets have already been reeling for weeks as investors brace for the full economic impact of Trump’s second-term trade agenda. His escalating tariffs, particularly the 25% tax on all foreign autos and auto parts, and planned levies on imports from dozens of countries by April 2, are driving up costs for U.S. businesses and consumers alike.
Although Trump insists his tariff strategy will ultimately restore American manufacturing and flood the country with foreign revenue, experts say the short-term damage is piling up fast, with inflation rising, consumer confidence falling, and the stock market stumbling.
“We’re the piggy bank that everybody steals from… and we’re not going to let it happen anymore,” Trump declared this week. But economists say this tough talk isn’t calming markets and could be doing more harm than good.
The University of Michigan’s consumer sentiment survey found that inflation expectations among consumers rose to 5 percent, up from 4.3 percent just last month. That marks the highest level since 2022, and reflects what analysts are calling an “unusually large” spike in inflation anxiety.
Investors, businesses, and consumers are now growing frustrated, not just by rising prices but by what they see as a lack of clarity and accountability from the Trump administration. Despite repeated warnings from economists and market analysts, the president has doubled down on tariffs, even as Wall Street continues to slide and everyday Americans feel the squeeze at the grocery store, gas pump, and car dealership.
“The balance between risks and opportunities has shifted since January 3, with risks rising and some opportunities fading,” wrote Barry Gilbert, vice president at investment firm Carson Group. “The lack of clarity on tariffs makes it hard to gauge the longer-term impact. We have seen increases in both actual inflation and inflation expectations.”
This latest economic jolt has many asking: Is Trump directly responsible for this market turmoil, and if so, will he finally do something about it? So far, the president has remained defiant, but pressure is building not just from Wall Street, but from millions of Americans struggling with higher prices and uncertain financial futures.
As the April 2 tariff deadline approaches, the stakes couldn’t be higher. The economy is flashing warning signs and Trump’s next move could determine whether things stabilize or spiral further out of control.