President Donald Trump attributed recent stock market declines to former President Joe Biden’s economic policies, distancing his own administration’s tariffs from the downturn. On April 30, 2025, Trump stated, “This is Biden’s Stock Market, not Trump’s,” emphasizing that the current economic challenges stem from the “Biden overhang” rather than his tariff strategies.
Since the implementation of Trump’s tariffs in early February—targeting countries like China, Canada, and Mexico—the Dow Jones Industrial Average has fallen by approximately 5,000 points, the Nasdaq by nearly 2,000 points, and the S&P 500 by around 500 points. Despite these figures, Trump maintains that the market’s performance is a residual effect of the previous administration’s policies.
A recent U.S. Department of Commerce report indicated a 0.3% annualized decline in gross domestic product for the first quarter of 2025, marking the first negative growth since early 2022. The report cited businesses accelerating imports ahead of tariff implementations and reductions in defense spending as contributing factors.
In January 2024, Trump had previously claimed credit for a rising stock market, attributing gains to investor optimism about his potential return to office. He stated, “THIS IS THE TRUMP STOCK MARKET BECAUSE MY POLLS AGAINST BIDEN ARE SO GOOD THAT INVESTORS ARE PROJECTING THAT I WILL WIN, AND THAT WILL DRIVE THE MARKET UP.”
The administration has signaled a possible easing of the 145% tariff on Chinese imports, with Trump suggesting it “will come down substantially, but it won’t be zero.” Treasury Secretary Scott Bessent warned against a prolonged trade war, indicating ongoing negotiations with China.
