Is Donald Trump tanking the US economy? | LBC analysis

Donald Trump has refused to rule out the possibility of a recession or higher inflation this year, as his volatile trade tariffs policy sends shockwaves through the US stock market.

The US president said his country is going through a ‘period of transition’ and that his economic police will ‘take a little time’.

The comments caused the US stock market to take a sharp plunge, with Wall Street’s main indexes the Dow Jones, the S&P 500, and Nasdaq all dropping into the red.

Just last week, the S&P 500 registered its worst week since September, sliding downwards by 3.1%, as a result of Trump’s volatile trade tariffs policy.

Trump has now refused to rule out the possibility of the US economy sliding into a recession and rising inflation as a result of his tariff flip-flopping.

Economist Mohamed El-Erian explains whether Trump is sabotaging the US economy, and how likely a potential recession is, to James O'Brien.

#jamesobrien #donaldtrump #trump #economy #usa #uspolitics #tariffs #trumptariffs #recession #dowjones #wallstreet #nasdaq #snp500 #stockmarket #stockexchange #LBC

LBC is the home of live debate around news and current affairs in the UK.

[nicolasbenson]

Some economists are worried that the policies of Trump 2.0 will prove to be inflationary. My question is, does the economy really determine the stock market? I still see booming performances and curious how to turn the market in my favor.

[theoldar]

American here. The thing you need to understand is that there is no grand strategy. There is nothing going on behind those eyes. He means exactly what he says. When he is calling for a resort in Gaza, he means he wants a resort in Gaza. It's not a bargaining chip. When he says tariffs will be paid by the exporting country, he believes that. And remember, he isn't an expert in economies, manufacturing, or markets. He is a real estate con man. That's the only job he knows.

[sarangistudent]

At least we’re getting an idea of what Farage will do if ever elected as pm.

[StéphanieShort-sg]

We need to all boycott US products and services to help drive them into recession, only fighting financially will resonate and stop this USSA government and policies. We need to stand strong with Ukraine, Canada, Mexico, Greenland, Panama and Europe !

[benc]

Everyone is assuming Trump is playing 4D chess but we know from his first term that he's an idiot. Obsessed with ratings and being No1 in the news cycle. If there is a plan, it's not his but people in the background.

[garethjenkins]

Who would have guessed that a man that had 3 casinos go bust would tank the US economy.

[dellaanniehughes]

Trump is the Liz Truss of the USA. Buy lettuce shares

[Dominionroads]

Watching a CBC Canadian reporter on the US side in Buffalo asking Americans what they thought of the tariffs and he was actually having trouble finding people who even knew about them. That unfortunately is part of the problem in the US, just a lack of awareness of the world outside the US.

[j.k.stevens]

Trump has no control of his emotions. And he's surrounded by yes men. Deadly combo.

[bathesheba]

Just cancelled my Apple TV next all other US streamers. Then boycott all US companies especially Tesla. Hope if lots do that then it will send a message….

[Claudia_Ackermann]

China: *Wins by doing nothing*

They surely are following Napoleon and Sun Tzu's advice

*"Never interrupt your enemies when they are making mistakes"*

[jeffwagar]

Yup, Donald the Dictator is 💯 tanking the US economy - and Canada is enjoying every second of it 🤣🇨🇦

[chrisfryer]

Taken a page out of the Liz Truss economic play book, Trump has.

[Dynasty]

Yes, tank it and his tech bros can bet against the economy and make money as it falls, then buy up assets lower priced, then he'll reverse the tariffs and the economy will grow again and they ride the increased value on those assets. It's classic tactics.

[TurinStark]

Why shouldn't he? He and his cronies will buy stocks when they're low... Only smaller fish will lose money

[blitz]

Let’s hope Canada emerges stronger and more independent out of this .

[divinity]

For those who are still convinced Truss "wasn't given a chance" - Trump is the man she said the US economy needed.

[tap]

Maybe this is the US Liz Truss moment. Someone with very little actually real understanding of how a economy works decides to have a go.

[fullmooneve]

The billionaires haven't lost nowhere near as much money as necessary

[ooSpyderoo]

Putin must be rubbing his hands in glee, watching the US go down the drain and he didn’t have to do a thing.