Trump Advocates for Tariffs Amid Market Concerns

In a recent meeting with the leaders of major American corporations, U.S. President Donald Trump reaffirmed his commitment to tariffs, suggesting that they could increase in number. This meeting took place with around 100 CEOs, including executives from prominent companies such as Apple, JPMorgan Chase, and Walmart, as part of a regular gathering of the Business Roundtable.

The backdrop to this meeting was a notable selloff in U.S. stock markets, with the S&P 500 index experiencing a decline of 5.3% since the start of 2025. Investors are increasingly anxious about the potential impacts of heightened tariffs and a decline in consumer sentiment. Just the day before, the S&P 500 registered its largest drop of the year, following comments from Trump that did not dismiss the possibility of a recession linked to his trade policies. However, he later clarified his stance, stating he does not foresee a recession.

During the meeting, Trump maintained a defiant posture, downplaying market fluctuations and assuring attendees that their investments would yield positive returns. He claimed that tariffs would generate significant revenue for the U.S. and hinted at the possibility of further increases.

While Trump spoke to the gathered executives, their reactions were muted, with only scattered laughter at some of his remarks. He further discussed plans to expedite approvals from environmental agencies and proposed lowering the corporate tax rate to 15% for companies manufacturing within the United States.

Trump characterized the current market as having been overly optimistic in recent weeks. He described the Chinese leadership as displeased with the new tariff measures, emphasizing his administration's focus on correcting trade imbalances and addressing illegal narcotics trafficking.

The administration's approach has involved a series of tariff announcements, some of which are already in effect while others are scheduled to be implemented later. Recently, Trump intensified trade tensions with Canada by initially proposing to double tariffs on imported steel and aluminum, although this was later adjusted after negotiations.

Market analysts express concern that these tariffs could lead to increased operational costs for businesses, raise inflation rates, and ultimately diminish consumer confidence, all of which could hinder economic growth. There is also apprehension that Trump's aggressive trade stance may not align with the interests of the business community.

White House officials, however, reject the notion that such trade wars will have detrimental effects, arguing instead that the tariff threats will compel companies to invest more heavily in the U.S.

Trump's historical narrative has often linked his political success to stock market performance, frequently referencing rising stock prices as indicators of his administration's achievements. Both in his earlier term and during his electoral campaigns, he has warned that a change in leadership could result in market downturns.

Previously, Trump imposed tariffs of 20% on Chinese imports and 25% on goods from Canada and Mexico, although many of these duties have been temporarily suspended pending further review. Investors had held onto hopes that Trump's policies would bolster economic growth, particularly through tax reductions and deregulation aimed at the energy sector. However, the need for congressional approval for tax cuts and the unpredictable nature of energy production have led to uncertainty about their potential effectiveness.

Some economists are also cautioning that increased deportations of undocumented immigrants could create additional price pressures in the labor market, further complicating the economic landscape. The CEO of BlackRock recently noted that a shift towards more nationalistic policies could result in sustained inflation.

In a recent statement, the Business Roundtable warned that prolonged tariff implementations could have serious repercussions on the economy.