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Stock Market Crash: Will Donald Trump Ease Tariffs to Prevent More Fallout?

U.S. stock market crash loses $2.1T as Trump's escalating trade war causes sharp declines in major indexes, raising recession fears.
Stock Market Crash: Will Donald Trump Ease Tariffs to Prevent More Fallout?

Stock Market Crash: The U.S. stock market has plunged into significant turmoil, erasing over $2.1 trillion in value as investors react to President Donald Trump’s escalating trade war. On April 7, 2025, the market’s opening saw dramatic losses, with the Dow Jones, S&P 500, and Nasdaq Composite all dropping sharply, and concerns over the economic fallout intensified.

As a result, many are questioning whether Trump will reconsider his tariff policies to prevent further damage to the market and the broader economy.

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Stock Market Crash Hits Historic Losses Amid Escalating Tariff Tensions

The U.S. stock market faced one of its worst days in recent history on April 7, as tariffs imposed by President Trump triggered a sharp sell-off. Over $2.1 trillion got wiped out from the U.S. stock market during the day’s trading session, with major indexes experiencing deep declines. After touching a record high a few months ago, the S&P 500 plummeted by 4%, with the same impact reflected in the Dow Jones and the Nasdaq.

At the same time, the market lost all its gains in the previous twelve months, raising investors’ concerns due to economic uncertainty. This stock market decline was triggered by escalating tensions in trade relations between the United States and China, especially Donald Trump’s new tariff increase.

Because of China’s reciprocity action through putting a 34% tariff on the American products, concerns of the trade war and global recession persist.

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Peter Schiff and Bill Ackman Sound the Alarm

Peter Schiff an economist and Trader has opined about the current environment warning of the risks that lie ahead. Currently, Schiff continues to be of the opinion that the market has not properly priced the possibility of an upcoming recession, especially if the tariffs persist.

He stated that the current values of the markets are over-estimated, or have been for sometime now, including the recent dip in the market. Schiff stated that the U.S is likely to experience the worst recession since the Great Depression and said that a 50% market decline might not adequately capture the scale of the upcoming issues. Concurrently, Peter Schiff has predicted that the Ethereum price may drop to $1,000 under these market tensions.

Another voice that echoed such sentiments amid the stock market crash was that of billionaire investor Bill Ackman who expressed his concerns regarding the trade war citing its potential impact on the economy. Ackman categorised this as a ‘self-imposed, economic winter’ saying that the president’s approach would make things worse. However, he accused the administration of provoking the trade war and urged the president to declare a ceasefire because of the negative impact on the economy.

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Robert Kiyosaki Warns of a Coming Depression

Robert Kiyosaki, the author of Rich Dad Poor Dad, has been very vocal in his criticism of traditional financial markets. He noted the stock market crash may get worse and there is bigger collapse incoming.

Kiyosaki had predicted that the current downturn would lead to a recession, possibly even a depression. In his recent statements, Kiyosaki emphasized that the market is heading toward a “destruction of fake paper assets,” referring to the overvalued stocks, bonds, and other financial products that have been driving the economy.

Kiyosaki has continuously encouraged people to invest in assets such as gold, silver, and Bitcoin which he calls a “safe haven’, as they will not be as severely affected by another financial crisis. He noted that inflation, and money printing is causing the downfall of the US dollar and adding to the fear of an economic collapse. Kiyosaki proceeded to say that the current bear market is an indication of the fact that the world financial system may be at the precipice of a change.

Will Trump Reassess Tariffs to Ease Market Turmoil?

As the stock market crash persist and apprehensions over a recession increase, the focus shifts to whether Trump will change his stance on tariffs or not. Losses on the U.S. stock market and global economic instability have prompted some experts to assume that Trump may have to reverse his actions concerning tariffs.

Despite the criticism, Trump has remained firm in his stance, stating that the tariffs are necessary to address long-standing trade imbalances and unfair practices. Moreover, Donald Trump warned China that if they do not withdraw their 34% retaliatory tariffs, the U.S. will impose an additional 50% tariff. This hardline approach has raised concerns that the trade war could continue to escalate, further destabilizing the global economy.

Some investors, like Ackman and Schiff, have called for Trump to reconsider his strategy. They argue that the tariffs are already causing significant economic damage and that continuing down this path could lead to even worse outcomes. Schiff has been particularly vocal in warning that the market is not properly pricing in the risk of a major recession, and that the current market decline may just be the beginning.

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Kelvin Munene Murithi

Kelvin Munene is a crypto and finance journalist with over 5 years of experience, offering in-depth market analysis and expert commentary . With a Bachelor's degree in Journalism and Actuarial Science from Mount Kenya University, Kelvin is known for his meticulous research and strong writing skills, particularly in cryptocurrency, blockchain, and financial markets. His work has been featured across top industry publications such as Coingape, Cryptobasic, MetaNews, Cryptotimes, Coinedition, TheCoinrepublic, Cryptotale, and Analytics Insight among others, where he consistently provides timely updates and insightful content. Kelvin’s focus lies in uncovering emerging trends in the crypto space, delivering factual and data-driven analyses that help readers make informed decisions. His expertise extends across market cycles, technological innovations, and regulatory shifts that shape the crypto landscape. Beyond his professional achievements, Kelvin has a passion for chess, traveling, and exploring new adventures.

Why trust CoinGape: CoinGape has covered the cryptocurrency industry since 2017, aiming to provide informative insights to our readers. Our journalists and analysts bring years of experience in market analysis and blockchain technology to ensure factual accuracy and balanced reporting. By following our Editorial Policy, our writers verify every source, fact-check each story, rely on reputable sources, and attribute quotes and media correctly. We also follow a rigorous Review Methodology when evaluating exchanges and tools. From emerging blockchain projects and coin launches to industry events and technical developments, we cover all facets of the digital asset space with unwavering commitment to timely, relevant information.
Investment disclaimer: The content reflects the author’s personal views and current market conditions. Please conduct your own research before investing in cryptocurrencies, as neither the author nor the publication is responsible for any financial losses.
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