The Blubber

Trump Defends Tariff Policy Amid Market Turmoil

March 8, 2025 | Washington, D.C.

President Donald Trump has spent the first months of his second term imposing—and then swiftly revoking—tariffs on imports from Canada and Mexico, the country’s closest trading partners.

“A lot of them are globalist countries and companies that won’t be doing as well because we’re taking back things that have been taken from us many years ago,” Trump said during an Oval Office signing ceremony, responding to questions from reporters.

Temporary Tariff Reduction Fails to Stabilize Markets

On Thursday, Trump signed an executive order reducing tariffs from 25% to 10% on car parts, subassembly products, and potash—a key fertilizer component—imported from Canada and Mexico. The move was aimed at lessening the impact on U.S. producers and farmers who rely on these goods.

Despite the concession, markets continued to decline, with both the Nasdaq and S&P 500—the U.S.'s most significant stock indexes—falling sharply by the end of the day.

"Wall Street endured a chaotic session yesterday with the Nasdaq down 2.6% and the S&P 500 down 1.8%. The VIX measure of volatility jumped by 13.5%, illustrating how investors are feeling nervous," said Russ Mould, investment director at AJ Bell, in comments to Euronews.

Trump dismissed concerns over the market drop, telling reporters he "wasn't looking at markets" and insisting there would "always be a little short-term interruption, (but) I don’t think it’s going to be big."

Trump Targets European Trade Policies

During his remarks, Trump singled out European nations, accusing them of relying on U.S. military protection while blocking American exports.

“We were supporting NATO, we were paying the bills for other countries, yet those same countries, mostly European countries, were ripping us off in trade," Trump said. "They won’t take our cars, take our agricultural products, they wouldn’t take anything—yet we were taking their cars by the millions: Mercedes, BMW, and Volkswagen.”

The president’s trade policies have stirred uncertainty among businesses and investors, with many closely watching for further shifts in his approach to global commerce.