In a dramatic turn for the global financial markets, former U.S. President Donald Trump defended his aggressive tariff policies that have sparked a historic market reaction. Over $5 trillion in market value has been wiped from S&P 500 companies within just two days, marking one of the largest short-term losses in U.S. stock market history.

Trump’s Justification: A Dose of “Medicine”

Speaking to reporters, Trump acknowledged the economic pain but insisted the strategy was necessary.

“Sometimes you have to take the medicine,” Trump said. “Lots of countries are dying to make a deal – they’ve taken advantage of the U.S. for too long.”

The statement came amid rising investor anxiety, as Wall Street reacted to the sweeping tariffs placed on both traditional allies and economic competitors. The markets closed sharply lower on Friday, underlining the massive impact of Trump’s ongoing trade war rhetoric.

Record Market Losses Shake Wall Street

The S&P 500 alone saw $5 trillion in valuation wiped out, a number that sent shockwaves through financial institutions and global investors. Major indexes, including the Dow Jones and Nasdaq, also posted substantial declines, dragging down retirement funds, global portfolios, and investor confidence.

Global Ripple Effect

Economists warn that the tariffs could lead to retaliation from other nations, especially China and European partners. Supply chains may face significant disruptions, and import/export costs are likely to rise for U.S. businesses and consumers alike.

Mixed Political Reactions

While Trump’s base hailed the move as a stand for American manufacturing, critics argue that the economic fallout could outweigh the long-term gains. Several lawmakers urged caution and called for open dialogue to avoid further financial instability.

Conclusion: A High-Stakes Gamble

As markets continue to adjust, one thing is clear — Trump’s tariff policies are reshaping the global economic landscape. Whether this is a short-term shock or the beginning of a deeper financial crisis remains to be seen.

📰 Don’t miss the latest global headlines — visit NewsAffair360

📲 Follow us on Instagram, Facebook, and YouTube @newsaffair360