On Tuesday, The White House stood up for President.
Donald Trump
‘s economic policies amid
steep drops in the stock market
, dismissing the idea that his government is accountable for the economic upheaval.
Karoline Leavitt, serving as Press Secretary at the White House briefing room, minimized worries about stock market fluctuations, characterizing the scenario as merely “an image captured at one point.” She positioned the decline within a broader perspective of essential economic change.
“The president has been diligently working each day to mitigate the suffering caused by the prior administration,” Leavitt stated, downplaying worries regarding potential long-term instability.
Why It Matters
The U.S. financial markets have been unsettled following Trump’s actions.
notification about new taxes on steel and aluminum coming into the US from Canada
, a step that numerous experts claim has ignited economic instability.
Even though the White House remains optimistic, the
Dow Jones
The Industrial Average along with the S&P 500 has experienced substantial declines, with
Analysts point to increased trade tensions and worries about economic expansion as causes for the fluctuation.
Consumer confidence has fallen to its lowest point since August 2021, and simultaneously, layoffs by U.S. companies have gone up.
What To Know
The prevailing narrative at the White House Press Briefing Room on Tuesday revolved around the ongoing downturn of the U.S. stock market after Trump’s initial weeks as president, with financial markets on Wall Street being particularly affected.
quickly falling 10 percent under
It reached its peak just a few weeks back.
In response to inquiries about Trump’s role in causing market instability, Press Secretary Karoline Leavitt refrained from assigning direct culpability, focusing instead on highlighting the administration’s overarching economic plan.
We find ourselves in an era of economic change…coming out from the chaos that had been caused by
Joe Biden
She emphasized that Trump continues to be dedicated to reviving American manufacturing and achieving preeminence in the global economy.
Leavitt similarly minimized the importance of market volatility, even though Trump had formerly highlighted stock increases as an indicator of his achievements.
Fox News
During an interview on February 9, Trump referred to the stock market’s performance as “an astounding accomplishment.”
“Regarding the stock market, the figures from today, yesterday, and tomorrow merely represent a momentary glimpse,” Leavitt informed journalists.
Nevertheless, she calmed investors by stating that Trump continues to concentrate on reviving the economy. “Both people on Wall Street and those on Main Street should place their bets on this president,” she asserted.
However, financial analysts remain skeptical. Trump’s previous reliance on stock market gains as validation of his economic agenda has now shifted, with the administration preparing Americans for what
It refers to a crucial “cleanse phase” in the economy.
.
Tariff Strategy Sparks Backlash
Market instability has been linked to Trump’s aggressive trade policies,
including new tariffs on Canadian metals
. When asked whether Canada remains a close ally—given Trump’s suggestion that the country might be better off as the 51st U.S. state—Leavitt’s response raised eyebrows.
“Canada is a neighbor. They are a partner. They have always been an ally,” she said. “Perhaps they are becoming a competitor now.”
She added that Trump believes Canadians would benefit from U.S. statehood. “He believes Canadians would benefit greatly from becoming the 51st state of the United States of America,” she said.
Meanwhile, Canadian officials have pushed back. Ontario Premier Doug
Ford
has threatened
a 25 percent surcharge on electricity exports to the U.S. in retaliation for the tariffs.
“The president is unwavering in his commitment to restoring American manufacturing and global dominance,” Leavitt insisted. “He doubled down on that this morning with his statement and the tariffs that take effect tomorrow on steel and aluminum.”
Recession Fears
The administration has not yet made a decision
rule out the chance of an economic downturn
Over the weekend, Trump admitted that his strategies might lead to some short-term economic instability yet maintained that these measures were essential for sustained growth over time. Leavitt supported this viewpoint.
She mentioned that the president has been diligently working each day to lessen the suffering caused by the prior government.
When asked if financial markets were unsure about Trump’s economic strategy, she replied, “A lot of people believe in the strength of the economy.”
During an intense back-and-forth, Fox News correspondent Peter Doocy challenged Leavitt about whether anybody within the White House had gained financially from the drop in the stock market.
“Do you believe that the continuous decline in the Dow Jones is just a transitional phase? Nobody from the White House has bet against the Dow, right?” Doocy questioned.
Leavitt dismissed the query with a laugh. “Nah, I don’t believe so,” she replied.
What People Are Saying
Karoline Leavitt, the White House Press Secretary, addressed the journalists saying:
In the realm of the stock market, the figures we observe today, those from yesterday, and those yet to come tomorrow represent merely a fleeting glimpse at one particular instant.
Lawrence J. White, an economics professor at New York University’s Stern School of Business, stated
SofTech
:
investors think these steps will adversely affect business earnings. Numerous U.S. firms will be impacted, and furthermore, there’s the matter of
retaliatory tariffs
From other nations—something Mr. Trump appears not to have thoroughly taken into account.”
President Donald Trump during his speech
Congress
last week:
Tariffs aim to make America wealthy once more and restore its greatness. This process has begun and will occur relatively swiftly. Some disruptions may arise, but we are prepared for them. These disturbances will not be significant.
What Happens Next
The U.S. stock market faces increased uncertainty as several economists caution about the possibility of an economic downturn by year-end.
Updated: March 11, 2025, at 3:02 PM ET: The piece has been revised to include further details.
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