Even his biggest donors are feeling the heat from his chaotic tariff war — but Trump still wants credit for dousing the flames he stated.
President Donald Trump’s latest economic U-turn may have given Wall Street a brief sugar high, but behind the scenes, the wreckage tells another story — and this time, it includes the president’s own donors. Many of the powerful business leaders and industry insiders who bankrolled Trump’s rise are now among the biggest losers in a trade war that no one else wanted.
From agriculture to manufacturing, retail to logistics — key Republican-aligned sectors have been hit hard by Trump’s unpredictable tariff policies. These aren’t just numbers on a spreadsheet. They’re real impacts on jobs, production lines, and market confidence — the very lifeblood of industries that once saw Trump as their champion.
And yet, true to form, Trump has found a way to declare victory in the middle of the firestorm he created.
After announcing sweeping new “Liberation Day” tariffs last week — targeting dozens of countries in a dramatic escalation — the global markets went into a tailspin. Stock prices plunged to levels reminiscent of pre-recession eras. Retirement accounts for everyday Americans lost billions in value. Several U.S. companies began quietly announcing layoffs in their manufacturing divisions. Business confidence dropped like a rock.
Then, on Wednesday, came the pivot.
After posting on his social media platform that it was “a great time to buy!” — sounding more like a late-night infomercial than a sitting president — Trump abruptly paused many of the new tariffs for 90 days. Wall Street, starved for good news, responded with a historic single-day rally.
But let’s not mistake this for a recovery. The real economic wounds are still open.
While some tariffs were put on pause, Trump doubled down on others. He increased tariffs on Chinese goods to a staggering 125%, left a 10% universal tariff on most other nations, and kept a 25% tax on imports from Canada and Mexico.
This was no rollback — it was a temporary reprieve, at best.
And yet, in the Oval Office, Trump stood grinning before reporters and proclaimed: “The biggest increase in the history of the stock market. That’s pretty good.”
Except… it’s not true.
As The New York Times reported:
- The S&P 500, despite its rally, remains 11.2% below its February peak.
- The Nasdaq Composite rose 12.2% but is still around 15% down from its December high.
- The Russell 2000 index — which tracks smaller companies more vulnerable to economic shifts — is down a painful 22% since November. It’s the worst stock market start to a U.S. presidential term since the dot-com crash.
So what exactly was the strategy here?
Trump and his loyalists have offered a buffet of justifications: bringing manufacturing home, standing up to global freeloaders, and fixing “unfair” trade deals. Central to this narrative is Trump’s obsession with trade deficits — which he sees as proof the U.S. is being “ripped off.”
But economists, including many within Trump’s own orbit, have long argued this is a flawed way to look at global trade. Trade deficits aren’t inherently bad. They often mean American consumers have greater purchasing power and access to affordable goods. Tariffs, on the other hand, act like hidden taxes, driving up costs for consumers and sowing chaos across supply chains.
The internal messaging wasn’t much clearer. Commerce Secretary Howard Lutnick confidently declared that Trump would never back down. Trade adviser Peter Navarro told The Financial Times, “This is not a negotiation.” And hedge fund billionaire Bill Ackman, one of Trump’s high-profile supporters, warned of a “self-induced, economic nuclear winter” if the tariffs weren’t rolled back — only to turn around hours later and praise Trump’s pause as “brilliantly executed” and classic Art of the Deal.
Stephen Miller, Trump’s deputy chief of staff, went even further, calling it “the greatest economic master strategy from an American President in history.” Trump himself claimed that “more than 75 countries” had reached out to negotiate — though as of this writing, the White House hasn’t named a single one.
Outside the echo chamber, however, the mood is different. For many of Trump’s donors and former allies in business, the whiplash has been brutal. Long-term planning has become nearly impossible under an administration that governs by impulse. Investors now second-guess putting money into the U.S. market, fearing that at any moment, a tweet or late-night policy shift could send their operations into turmoil.
And for Pacific Island nations — including Tonga — that rely heavily on the stability of U.S. markets and trade relationships, these economic tremors are not just distant news. They ripple through currency values, aid negotiations, and the confidence of regional partners who depend on global financial stability. A United States seen as erratic and self-serving is not good news for any small island developing state trying to attract foreign investment or secure sustainable trade terms.
So what has this all really achieved?
- The market is still well below its highs.
- Businesses — both foreign and American — have little reason to trust that this administration will act in good faith.
- U.S. credibility in global economic leadership has taken a major hit.
And yet, for Trump’s most devoted followers, the myth of the master dealmaker remains unshaken. They’ll believe him when he says he made it rain in the desert. But for the rest of the world — including burned donors, rattled investors, and weary allies — this has been a reminder that leadership isn’t about setting fires and bragging when you throw water on the ashes.
What we’ve seen is not strategy. It’s improvisation dressed up in bravado. And while the political theatre may continue, the damage to confidence, credibility, and economic stability is all too real.
By Melino Maka
Tonga Independent News
