US stocks plunge: Trump to blame?
After Donald Trump's election victory euphoria reigned on Wall Street, but now share prices are tumbling. The value of the companies listed on the S&P 500 US stock market index has shrunk by four trillion dollars since mid-February. The media take a look at what's behind the turmoil in the US's big tech-dominated economy.
Customs chaos is causing uncertainty
Dagens Nyheter has scathing criticism for Donald Trump's trade policy:
“Companies have to choose between breaking up established and well-functioning production chains or drastically raising prices. And it doesn't help that the Trump administration changes its mind almost daily about which tariffs should apply, and to which products. ... If there's one thing businesses hate, it's uncertainty. ... Both the US and the EU have good reasons to impose tariffs on China, not least for geopolitical reasons. But the trade war in North America - and against the US's allies in the rest of the world - is sheer folly.”
This was bound to happen
Trump's policies are hurting an already fragile economy, Corriere del Ticino concludes:
“The fall in US stock prices was triggered by the crazy tariff war and Elon Musk's plans to cut government spending. But these factors cannot hide the fact that the imbalances that have enabled the country's economy to achieve exceptional growth in recent years are now coming to a head: a huge public deficit that now exceeds 120 percent of GDP, a trade deficit that continues to expand, and finally a big speculative bubble in the share prices of companies active in the area of new technologies, in particular artificial intelligence.”
Promise of prosperity just campaign bluster
La Vanguardia sees a disillusioned US financial sector:
“One of the reasons for the Democrats' defeat was Joe Biden's failure to curb inflation. ... Trump promised 'skyrocketing wealth. We are going to boom like we've never boomed before'. ... Now he is being more modest and talking of a 'period of transition' that will last for some time. His tariff decisions are having an impact on the stock markets and investors fear a surge in inflation. ... The best example is what Elon Musk is experiencing. ... Tesla shares have dipped since the tycoon moved to Washington. ... Most banks are starting to worry because Trump's barrage of decisions don't appear to be going in the right direction to stabilise the United States. ... The promised boom has gone no further than campaign discourse.”
Maga fans could have their hopes dashed
Trump's policies may hit his supporters harder than the financial markets, warns Libération:
“The chainsaw offensive against the welfare state led by Elon Musk - budget cuts, dismantling USAID and mass layoffs of public servants - is starting to also make investors nervous: what if this Trumpist counter-revolution were synonymous with inflation and recession for the United States? ... Clearly Trump doesn't know what he's doing, not to mention his switching alliances in favour of Putin and to the detriment of Ukraine. The Maga cap-wearing fans who voted for him in the hope of a better life may soon be disappointed. And for them things will be far harder than for the traders.”