President Trump explicitly stated he would not consider stock market reactions when deciding on tariff policies.
He remarked, “The market is not relevant at all” and “I don’t look at the market,” actions aimed at long-term economic strengthening.
Recently, the New York stock market has been in decline, with the Nasdaq Composite Index dropping more than 10% from its previous high.
Opinion
The Trump administration’s disregard for market sentiment is likely to increase short-term market volatility.
His comments suggest no intention to defend against market downturns, contrasting with the earlier “Trump put” effect.
Although the government targets long-term economic strength, short-term market instability is expected to persist, so investors who have already liquidated positions should carefully consider the timing of any re-entry.
Core Sell Point
In light of the government’s resolute tariff policy and the continued short-term market volatility, it is advisable to reduce existing positions and closely monitor market trends before considering re-entry.
US President Donald Trump made it clear that he would not consider the stock market’s reaction when making decisions on tariff policies. During an executive order signing ceremony at the White House, he told reporters, “The market is not relevant at all,” adding, “I don’t look at the market. In the long run, America will have a very strong economy under the policies we are currently implementing.”
These remarks sharply contrast with the so-called “Trump put” effect that some experts had anticipated during his previous administration. In fact, recent trends in the New York stock market have shown declines—particularly among technology stocks—with the Nasdaq Composite Index falling more than 10% from its previous peak, thereby amplifying overall market uncertainty. The US Secretary of Commerce also stated that minor fluctuations in the stock market are not a crucial factor in policy decisions, emphasizing a focus on economic recovery.
This government stance of ignoring market reactions could further increase short-term market volatility. With tariffs and protectionist trade policies in effect, the ensuing drop in stock prices is likely to dampen investor sentiment. Therefore, it is advisable to liquidate positions in the short term and carefully monitor how market trends evolve based on policy direction and global economic factors. Since President Trump’s long-term economic strengthening policies do not factor in market responses, a conservative adjustment of positions followed by a cautious re-entry into the market is recommended.
