Trump's Trade War and Market Turmoil What Investors Need to Know

Trump's Trade War and Market Turmoil What Investors Need to Know

The video analyzes the current stock market downturn, attributing it to Trump's trade war policies and geopolitical tensions. It compares the situation to the Smoot-Hawley Tariff Act and the Great Depression, warning of potential recession. The creator advises against panic selling, recommending instead to build emergency funds, invest during dips, diversify portfolios, and maintain a long-term perspective. The video emphasizes that market crashes are buying opportunities for disciplined investors.

Trump is 'Purposely' Crashing the Stock Market. | Transcript:

The stock market is over and you should get out before Trump triggers a full-blown recession. That's what the mainstream media want you to think. Headlines are screaming disaster, social media is in a frenzy, and everyone is asking the same question. Should I sell now before it gets worse? But there's more to this than meets the eye. If you followed me for a while, you know I'm a serious investor who's obsessed with the stock market. And since so many of you have started investing because of my videos, I feel a responsibility to give you my honest take on the situation. So, before you panic, let's take a step back

and look at the bigger picture together. Every market crash has a cause and this one isn't random. There are three main triggers behind it and all of them tie back to one man, Donald Trump. Now, before anyone jumps to conclusions, this isn't about politics. I'm not here to take sides and as a British investor looking in, my only concern is how this impacts investors like you and me. So, let's break down the three biggest triggers behind this crash, why they matter, and what you can do to benefit from all this mayhem. Trigger one is Trump's trade war. Trump has always pitched himself as the ultimate dealmaker. He's the guy who fights for American jobs and plays hardball with other countries. But the

trade wars he's fighting could increase your weekly shopping bill and cause a recession. The last time the US tried this, it helped trigger the Great Depression, wiping out jobs and wrecking the economy. Now, history might be repeating itself. Stocks are already crashing, prices are rising, and if this spirals, it won't just hurt Wall Street, it'll hit you where it matters most, your bank account. Let me take you back to 1930 when I was just a boy. The US government decided to slap massive taxes called tariffs on imported goods to protect American businesses from foreign competition. It was called the Smoot-Hawley Tariff Act and it turned out to be one of the worst economic

mistakes in history. At first, it seemed like it would help. American companies wouldn't have to compete with cheap imports and more products would be made in the USA. But there was a big problem. Other countries fought back. Nations that used to trade with the US started raising their own tariffs, making it harder for American businesses to sell products overseas. Trade slowed to an absolute crawl. Businesses collapsed and millions lost their jobs. Instead of fixing the economy, it helped turn a regular recession into the Great Depression, one of the worst financial crises ever. Fast forward nearly a century and Trump has brought back tariffs in a big way. In February 2025,

Trump announced a 10% tariff on Canadian energy imports and a 25% tariff on other Canadian goods. In retaliation, Canada imposed a 25% tariff on American imports. Then in March, Ontario implemented a 25% surcharge on electricity exports to the US, affecting states like New York, Michigan, and Minnesota. However, in my opinion, this was more of a symbolic move that wouldn't have seriously damaged the US economy. However, Trump didn't hold back and instead of just brushing it off, he fired back by increasing tariffs on Canadian steel and aluminum to 50%. Unlike Canada's move, this wasn't just for show. It hit Canada's manufacturing industry hard while also driving up steel prices for American businesses that rely on imports. But why am I telling you all

this? Well, this is where the real problem starts. Tariffs sound good on paper as they're meant to punish foreign businesses while encouraging more stuff to be made in America. But in reality, they end up hurting regular people more than anyone else. As a business owner who manufactures products and imports from China myself, I know that when businesses are forced to pay more for materials, they don't just absorb the cost, they pass it on to their customers. That means higher prices on cars, appliances, and electronics. In addition to this, food becomes more expensive because supply chains get disrupted, meaning that everyday essentials cost more, stretching household budgets even further. On top of that, other countries aren't just

sitting around while Trump raises tariffs. They're forming new alliances to trade without the US. China is leading the charge with the BRICS alliance, partnering with Brazil, Russia, India, and South Africa to reduce dependence on American trade. So, the more the US isolates itself, the more other countries look elsewhere for business. So, what's my opinion on all of this as an experienced investor? Well, if Trump goes all in on this trade war, history suggests it'll do more harm than good. While some industries might get a short-term boost, the long-term damage, such as higher prices, weaker global ties, and a slowing US economy

could far outweigh any benefits. But if I'm being completely honest, I don't think Trump actually wants high tariffs. I know that sounds crazy, but hear me out. Trump is, at its core, a businessman and a dealmaker, just like me. That's why I believe he's using tariffs as a negotiation tactic, not as an end goal. So, if that's true, what does he actually want? Well, I think he's after free global trade, but on terms that favor the US. And if he pulls that off, it could pay off big time. However, the problem is his approach is creating massive uncertainty. The constant backtracking, new tariffs, and mixed signals are spooking the stock market because investors hate unpredictability. If this drags on too long, it could

shake confidence so much that it pushes the economy towards recession, something even Trump's own administration has admitted they're willing to risk. Right now, the market isn't just reacting to tariffs, it's reacting to uncertainty about what comes next. And in investing, uncertainty is one of the biggest killers of confidence. Trigger two is Trump's stance on NATO. Trump has openly questioned the role of NATO, the military alliance that protects Western countries. He suggested that the US shouldn't keep defending allies unless they start paying more for their own protection. While that might

sound like a fair demand, if the US steps back from its NATO commitments, it could create a power vacuum that countries like Russia and China might exploit. Markets hate uncertainty. The second investors sense that world stability is at risk, they panic. If NATO weakens, it could encourage Russia to push further into Europe or even lead to new conflicts as countries try to adjust to a world without the USA acting as the global police force. More conflicts mean higher military spending, unpredictable trade relationships, and spikes in energy prices, all of which can rattle the stock market. Trigger three is Trump's secret plan.

There's been a theory circulating that Trump may be crashing the stock market on purpose. I know that sounds crazy, but there is some evidence for it. Trump has never been a fan of high interest rates. In fact, he's called them ridiculous and has openly attacked the Federal Reserve for keeping them high. Now, here's where it gets interesting. The Fed is technically independent, meaning Trump can't just tell them to cut interest rates, but their decisions are based on economic If the stock market crashes and a recession seems inevitable, the Fed has no choice but to step in and slash interest rates to prevent a total meltdown. But why does Trump want lower rates? Well, because high interest rates slow down the

economy. Businesses borrow less, stocks struggle, people stop spending as much, and for Trump, who loves growth and hates anything that makes America look weak, they're a problem. It's not just about making the stock market go up, it's way bigger than that. The US government is drowning in 36.5 trillion dollars of debt and when interest rates are high, the cost of that debt goes through the roof. Think of it like a massive credit card bill. Imagine you owe 36,500 dollars and your credit card company charges 10% interest per year. That means before you even start paying down the actual debt, you're being charged 3,650 dollars every single year just in interest. Now, imagine the credit card

company suddenly slashes the interest rate to 3%. Instead of paying 3,650 dollars per year, your interest drops to just 1,095 dollars annually. That's a saving of 2,555 dollars every single year. Now, you can put this money towards actually paying off your debt instead of just keeping up with your interest payments. Well, that's exactly what Trump might be doing, but on a 36.5 trillion dollar scale. If the Fed lowers interest rates, the government can refinance its debt at a cheaper rate, saving billions, if not trillions in interest payments. This wouldn't be the first time something like this has happened. If Trump can create that opportunity on purpose, it could go down

as one of the smartest economic power moves in history. If this theory is true, we're not looking at a long-term economic collapse, we're looking at a temporary shake-up before a massive rebound. So, you're probably wondering, how can you benefit from this crash? Well, you need to understand that stock market crashes aren't rare disasters, they're a normal part of investing. Every few years, the stock market takes a hit, people panic, and headlines scream the end is near. But history tells us a different story. Every crash of the US market has been followed by a recovery. The people who panic and sell

usually lose money, while the ones who stay calm and invest strategically often come out on top. Instead of freaking out, this is the time to prepare, make smart moves, and hopefully set yourself up for massive gains when the market bounces back. Look, I'm not a financial advisor. However, I have made millions during stock market crashes. So, here are my thoughts on what you can do to prepare. Step one is to invest while the market is down. Before you even think about investing, you need a rock-solid financial foundation. I know I've said it before, but it's worth repeating. That means building an emergency fund of at least 3

to 6 months' worth of living expenses and eliminating any debt with an interest rate above 8%. Assuming you've done that, if you've never invested before, this could be one of the best times to start. Stocks are essentially on sale. During the 2008 financial crisis, I was still investing at the bottom and saw all my investments double within a few years. However, many of my friends panicked and sold, locking in their losses and missing out on the recovery. No one can perfectly predict the exact bottom of the market, but if you invest consistently while prices are low, you'll be buying assets at a discount. If you want to get started, then Trading 212 are currently giving you a free fractional share worth up to

£100 when you use the code TILBURY in the app and fund your account. If you've been waiting for a good time to do this, then this could be it. I'll leave a link in the description below if you're interested. Step two is to stay disciplined and think long-term. Market crashes aren't random. They follow predictable cycles. There are three types of crashes: corrections, which is a 10 to 20% drop. These happen frequently and are part of a healthy market. Bear markets, which is a 20 to 40% drop. These happen every few years and last about 289 days on average. And full collapses, which are more than 40% drops. These are rare, but

have historically been followed by huge recoveries in the USA. The biggest mistake new investors make is letting emotions dictate their decisions. When stocks drop, fear kicks in and people sell at a loss. When stocks rise, greed takes over and then they buy inflated prices. This cycle is why most people fail at investing. So, if you're already investing, the worst mistake you can make is panic selling. Selling while the market is down locks in your losses and keeps you from benefiting from when stocks recover. Instead, consider increasing your investments while stocks are cheap. Stick to a long-term strategy like dollar cost averaging. Invest in a fixed amount every month, no matter what

the market's doing. This reduces the risk of buying in at the wrong time and ensures you're steadily building wealth. Remember, the best investors see downturns as a chance to buy more. Step three is to diversify your investments. Putting all your money into one type of investment is a recipe for disaster. The key to surviving market crashes is diversification. This means spreading your money across different types of assets. My portfolio includes stocks, bonds, precious metals like gold, real estate, and even cryptocurrency. It's also worth considering dividend-paying stocks as they actually perform well during

downturns because they generate passive income even when prices are low. Just remember, market crashes aren't the end of the world. If you understand how to navigate them, you won't be the one panicking. You'll be the one taking advantage of the opportunities while everyone else is running for the exit. This isn't the time to fear the market. It's the time to prepare, invest wisely, and stay patient. The ones who make the smartest moves now will be the ones who come out on top when the market rebounds. If you want to know how to invest in 2025, then I'm going to leave that video right up there. But don't click on it just yet. Make sure to subscribe if you want to grow your wealth, okay? I'll see you over there.

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