Trumponomics at 100 Days: Tariff Turmoil Continues

As U.S. President Donald Trump completed his hundredth day back in the Oval Office on Tuesday, 29 April, many traders and investors alike looked back at how his trade policies have made their mark on the markets, and tried to discern harbingers of trends to come. Let’s take a closer look at Trumponomics and its attendant volatility:

Stock Market Whiplash

Donald Trump’s first 100 days back in office, according to some experts, may have been marked by uncertainty, not the economic triumph the U.S. president touted at a Michigan rally on Tuesday, 29 April. The S&P 500 has slumped by over 7%, making Trump’s opening stretch the most bearish for the markets of any U.S. head of state since the 70s.

Trump and his administration have used a few different methods to explain this phenomenon. The president has compared the economy to a patient recovering from surgery—pain now, boom later. Tariffs, according to the president, will bring longer-term benefits. 

A second explanation has been more focused on specific sectors. Trump and Treasury Secretary Scott Bessent pointed fingers at the tech sector, healthcare earnings, and even past administrations. A sell-off tied to Chinese AI firm DeepSeek, a rocky report from UnitedHealth, and criticism of Federal Reserve Chair Jerome Powell were all used to contextualise the American economy's lurch into the red.

While over 60% of Americans own shares, Trump’s team has framed tariffs as a win for “Main Street”, not Wall Street. However, a potential broad-based recession would likely affect New York financiers and the average citizen alike.

Although Tuesday saw the values of the S&P 500 and Dow Jones Industrial Average rise by nearly 0.6% and 0.75% respectively, the overall trend since Trump’s inauguration remains volatile. According to many savvy market watchers, Trump’s statements have not been able to reverse an increasingly risk-averse market mood. Instead of a roaring start, major indices have been limping through his first 100 days. (Source: Yahoo Finance)

Automakers Catch a Break

Despite the growing apprehensions, one sector of the U.S. economy may be feeling some relief following the president's latest economic policy shift. On Tuesday, Trump signed an executive order aboard Air Force One that stops multiple tariffs from piling up on carmakers. From now on, they’ll pay only the highest applicable duty—be it on autos, steel, aluminium, or even Chinese imports linked to the deadly drug fentanyl—not all of them at once. The executive order also promises reimbursements for upcoming parts tariffs—up to 3.75% of a U.S.-made car’s value in the first year, tapering down to 2.5% in the second.

This change has been welcomed cautiously by Detroit’s Big Three, but the shift may not yet be enough to sway investors. General Motors (GM) shares slipped slightly yesterday, down 0.5% by the ring of the closing bell, signalling that while the news was positive, it wasn’t exactly game-changing. On the other hand, Stellantis (STLA) and Ford (F) saw their share values rise by 2.3% and just under 1.3%, respectively. At the moment, the hefty 25% tariffs on foreign vehicles and parts remain firmly in place, and broader uncertainty around trade policy continues to loom.

Trump’s team called the move a win for American jobs and manufacturing, with one official declaring, “Finish your cars in America, and you win.” However, certain analysts hold that while the latest changes soften the blow, the president’s protectionist policies are still likely a cause for concern for major automakers. How these interlocking factors will develop throughout coming trading sessions for car stocks as well as the broader market remains to be seen.

Conclusion

As Trump’s second term hits the 100-day mark, markets remain volatile. While automakers may breathe slightly easier, Wall Street’s scepticism persists. With protectionist winds still blowing strong, investors are left navigating a volatile landscape, where it's unknown in which direction the markets will turn next. Only time will tell what the future has in store. 

*Past performance does not reflect future results.