Wars and confusion are bad for people who invest their money in the stock market. And right now, the US president is creating a lot of confusion.
Most Americans have some of their money in stocks. So when the president suddenly announces new taxes on other countries (called tariffs) or makes surprising statements, it scares investors and the stock market falls.
Trump tried to use tariffs to pressure China, but China still ended the year with a huge profit.
His trade deal with India isn’t moving, and now he has upset European countries by talking about wanting to buy Greenland, which he once called “a piece of ice”. Investors got nervous because they didn’t know if he would try to take Greenland by force or put new tariffs on Europe.
When Trump backed away from these threats, markets calmed down. But the worry remains, and that can slow down how much money people make. When US stock prices rise, Americans feel richer and buy more things—cars, clothes, computers, and more. This helps factories in many other countries, including India, and helps their economies grow. Good trade relationships help everyone. Wars—whether real or trade wars—hurt everyone.
But uncertainty is even worse than war for business. When leaders keep changing their decisions, companies don’t know how much things will cost or what rules will apply. In a clear war, markets first drop, then recover once the situation becomes predictable. But constant confusion freezes decision‑making.
Trump’s actions in his second term have created a lot of confusion for America’s friends and trading partners. For the sake of the people who voted for him—and for the global economy—he needs to stop creating uncertainty.
Disclaimer
Views expressed above are the author’s own.
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