- India,
- 09-Apr-2025 11:00 AM IST
Trump Tariff War: You must have heard the saying – “When Rome was burning, Nero was fiddling”, that is, when Rome was burning, Nero was playing the flute. The same situation seems to be happening with Donald Trump in today's times. When the global stock markets are faltering, the lines of worry on the faces of investors are deepening, then Trump is making a new political-strategic move – and that too openly on social media.Earthquake in the stock market and Trump's rhetorical arrowDonald Trump shared a video on Truth Social, in which it was claimed that he is deliberately bringing down the US stock market. In the video, it was described as a “Wild Chess Move” i.e. a unique, risky but strategic move. The thinking behind this? To shift capital from the stock market to bonds so that treasury yields are reduced, and the Federal Reserve is pressured to reduce interest rates.In this process, the dollar will weaken, mortgage rates will fall, and debt will become cheaper for the US government. From an economics perspective, this move could be a strategy to get long-term financial relief by giving a temporary economic shock.Trump's real agenda?The US has to refinance about $7.2 trillion of debt in 2025. In such a situation, if interest rates come down from 4.3% to 3.3%, then an annual saving of $72 billion is possible. Trump's strategy may focus on the possibility of investing this saving in other priorities - such as defense budget or space mission.But the question arises - is this move really in the national interest, or is it a political conspiracy? Is Trump deliberately crashing the market to present himself as a troubleshooter?High risk-high reward gameThis strategy clearly falls in the "high risk-high reward" category. If everything goes according to Trump's plan, then America can get financial relief. But if the market decline continues for a long time, then inflation, unemployment, and economic instability can shake the country's roots.This move is also risky for the global markets. India, Japan, Europe – all have come under the impact of this "reciprocal tariff" and investment trends. Investor confidence has started to waver and volatility is increasing in the markets.Is this really a chess move?If Trump's move is like a game of chess, then it is very risky - one wrong move and the whole board can turn upside down. History is witness that if leaders who play with the pulse of the market become overconfident, then their strategy can become a boomerang.
"CUT INTEREST RATES, JEROME" https://t.co/ALZfH33bcj pic.twitter.com/ndkHncc4Ng
— zerohedge (@zerohedge) April 4, 2025