Trump Champions Tariffs Amid Stock Market Decline

Addressing Corporate Leaders as Recession Fears Grow

U.S. President Donald Trump stood firm on his tariff strategy during a high-profile meeting with top corporate executives, even as U.S. stock markets faced a steep selloff driven by mounting fears of recession and rising inflation. Speaking to roughly 100 chief executives at the Business Roundtable, a gathering that included leaders from giants like Apple, JPMorgan Chase, and Walmart, Trump asserted that his trade policies would generate substantial revenue for the nation. This event came on the heels of a private White House session with tech industry heads, underscoring his focus on engaging business elites amid economic turbulence. U.S. stocks, tracked by the S&P 500, have tumbled 5.3% since the start of 2025, a decline fueled by investor unease over Trump’s aggressive tariff plans and weakening consumer confidence. The S&P 500 saw its sharpest single-day drop of the year earlier this week, a reaction to Trump’s weekend comments hinting at potential economic downturns tied to his trade approach, though he later dismissed recession risks, stating to reporters, “I don’t see it happening at all.”

Trump’s remarks to the CEOs painted a picture of unwavering confidence in his economic vision, suggesting that tariffs could rise further to bolster national coffers and address trade imbalances. He brushed aside market fluctuations, assuring business leaders that investing now would yield long-term gains. During a brief open segment of the meeting, the CEOs listened stoically, offering no visible reactions, though light laughter rippled through the room when Trump quipped about disliking some attendees. In a closed-door portion, he reportedly pledged to streamline environmental regulations and slash corporate taxes to 15% for firms producing goods domestically, moves aimed at incentivizing U.S. manufacturing. He also speculated that stock markets might have been overvalued recently and noted that Chinese President Xi Jinping was displeased with the latest tariff hikes, hinting at brewing international tensions.

The backdrop to Trump’s tariff advocacy is a volatile stock market grappling with the implications of his policies. The S&P 500 closed at 5572.07, down 0.76% for the day, with other major players like Goldman Sachs dipping 0.04%, JPMorgan Chase falling 1.33%, Walmart sliding 0.43%, and BlackRock dropping 0.53%. Investors are increasingly jittery about how Trump’s trade war tactics, including a 20% tariff on Chinese imports and 25% levies on goods from Canada and Mexico, might spike business costs, stoke inflation, and erode economic growth. Earlier in the day, Trump escalated tensions with Canada by threatening to double steel and aluminum tariffs to 50%, only to settle at 25% after Canadian officials agreed to negotiate. He has also outlined a broader plan for reciprocal tariffs on all trading partners starting April 2, signaling a sweeping shift in global trade dynamics.

Economists and market analysts largely view Trump’s tariff-heavy approach with skepticism, arguing that such measures often harm all parties in a trade conflict. The White House counters this by claiming tariff threats will spur domestic investment, though tangible evidence remains scarce. The Business Roundtable recently cautioned that prolonged tariffs could inflict significant economic damage, a sentiment echoed by BlackRock CEO Larry Fink, who warned at an industry event that growing nationalism might drive up inflation. Trump, however, remains undeterred, telling reporters before the meeting, “Markets will rise and fall, but we must rebuild our country.” This stance marks a shift from his earlier political rhetoric, where he frequently tied stock market gains to his leadership successes during his 2017-2021 term and warned of crashes if defeated in 2020 or 2024 elections.

Beyond tariffs, Trump’s economic agenda has sparked mixed investor reactions. Initial optimism about tax cuts and deregulation boosting growth has waned, as tax reductions require congressional backing and energy firms hesitate to ramp up production at the risk of shrinking profits. Meanwhile, his plans to deport undocumented immigrants and trim federal jobs could tighten labor markets and push prices higher, complicating the inflation outlook. For corporate leaders, the tariff debate poses a delicate balancing act: weighing potential benefits of domestic investment incentives against the immediate pressures of rising costs and market instability. As Trump doubles down on his trade policies, the interplay between his administration’s goals and corporate America’s priorities will likely shape the economic landscape for months to come, with stock market trends and inflation rates serving as key barometers of success or strain.