Stock Market Crashing Because of Trump Tariffs (Uncut) 03-07-2025

Stock Market Crashing Because of Trump Tariffs — Here’s Why I’m Buying!

Today is Friday, March 7th, and I just bought the S&P 500. So in other words, I bought the stock market dip because of the Trump tariff situation regarding Canada and Mexico. So let me explain.

Now let’s start with this. Recently, why has the stock market been falling? It’s because of President Trump’s threats of the 25% tariffs on Mexico and Canada. It’s been scaring stock market investors, right? But I’ll tell you this, if President Trump really implemented a 25% tariff on all Mexican and Canadian imports, it would be devastating to the U.S. economy.

Or as Trump would say, a little disturbance. So sure, it would hurt Canada and Mexico, no doubt, but it would damage the U.S. as well. Retaliatory tariffs would trigger job losses here in the U.S. Inflation would spike, which means that the Federal Reserve wouldn’t be able to cut interest rates anytime soon.

And then the stock market would crash. So here you can see that the tariffs have elevated the odds of a recession. This is coming from polymarkets.

So this fear has made the stock market fall. The S&P 500 is down 7% in two weeks. NASDAQ is down 10% from its highs.

However, yesterday confirmed, well at least to me, that Trump’s threats of 25% tariffs on all Mexican and Canadian imports is a bluff and a negotiating tactic. Therefore, I took this dip as a buying opportunity. So I want to expand upon this.

So the 25% tariffs against all Mexican and Canadian imports were supposed to begin on February 4th. And then Trump postponed the tariffs for one month. So one month goes by, and the 25% tariffs went into effect on Tuesday, March 4th.

But then the next day, on Wednesday, March 5th, Trump gives a one-month extension to automakers. That’s because the tariffs would have made new vehicles go up in price by an average of $3,000, and certain pickup trucks would have gone up in price by $10,000. And most people that buy pickup trucks are Republicans.

And then on the next day, March 6th, which is a Thursday, Trump gives a one-month extension to all Mexican and Canadian imports that fall under the USMCA. So that’s the North American Free Trade Agreement. So that means that roughly 50% of Mexican imports and 38% of Canadian imports received an extension.

Additionally, Trump decreases the tariff amounts for certain items. So just take a look at potash, which is used to make fertilizer. So that’s 10% there, and then 10% on energy and electricity.

So you know what this situation reminds me of? This whole situation reminds me of when the Republicans and Democrats can’t agree on government funding, and they threaten a government shutdown. But it’s like, who are you kidding? Come on. You know that’s never going to happen.

However, sometimes the politicians, they go past the deadline to show that they’re extra serious, and the government actually shuts down for a few days. But we all know at the end, it’s a bluff. It’s a negotiating tactic.

They’re not going to shut down the government for a long period of time. So from my perspective, it’s the same thing here. With this threat of 25% tariffs on all Mexican and Canadian imports, it’s a negotiating tactic.

Trump is not serious about imposing a 25% tariff on all Mexican and Canadian imports. All in all, when looking at the dollar value of goods, about 80% of Mexican and Canadian imports received either a postponement or a reduction in tariff. So again, I’ll say it very clearly.

These 25% tariffs on all Mexican and Canadian imports, it’s just a bluff. So listen, I put my money where my mouth is. I did this today.

So this has been driving down the stock market. I think it’s a bluff. So I bought the S&P 500.

I bought this dip with an ETF. I think an index fund is fine too. So this whole situation regarding Canada and Mexico, the tariffs on them, I’m going to cover it in further detail in a separate video.

But what I want to tell you is that the Great Melt-Up is still in full effect. And just to remind you, the stock market will continue to go up in the long run. It’s not because the market is great.

It’s not because the economy is doing so well. It’s because the dollar is being devalued. It’s financial asset inflation and you must get invested to protect yourself.

Now I want to show you this. So this is what brings me a lot of comfort, buying the dip at this level. So this shows you the performance of the stock market after the Federal Reserve does their pivots, meaning that they pivot their policy and start lowering interest rates.

So the Federal Reserve pivoted on September 18th of 2024. And at that time, the S&P 500 was just under $5,700. And I bought the dip right now when the S&P 500 is close to just under $5,700.

So essentially, the stock market right now is close to where it was when the Federal Reserve pivoted. After one year from the pivots, the median return is 16%. After three years, the median return is 41%.

After five years, the median return is 97%. And just look, five years after the pivot, the stock market is always up. So based on the math and historical data, I like my chances.

And I’ll tell you this, honestly, with my money on the line. So I’ll tell you that President Trump is not going to reduce the national debt. Trump is going to add trillions to the national debt.

And he’s not going to stop inflation. So listen, I’m not saying that Kamala Harris would have done a better job of fiscal responsibility. What I’m saying is that it doesn’t matter who you have in office.

This is why I send the Great Melt-Up video. We’re past the point of no return. We’re in the Great Melt-Up.

The currency will be devalued, and we’re going to have financial asset inflation. So this dip, I took advantage of it. I took it as a buying opportunity.

Now, I have four very important things to tell you. Seriously, these are so important. So the first thing is that in the long run, the stock market is going to go up.

You just really have to understand that. Just look at the historical data. But in the short run, who knows? It may go down another 10%.

That’s why I did not go all in on this dip. So if the market goes down even more, then I’m going to be ready. If there’s that threat, I welcome it.

I say, bring it on. I’m holding for the long run. So the second thing is that I’m not saying that stocks is the only way to protect yourself from a melt-up.

So personally, I mean, listen, I own physical gold. I own silver. I’m not going to argue with precious metal supporters or crypto supporters.

The third thing is that it’s no secret that President Trump judges his success or anyone’s success by the performance of the stock markets. If the tariffs are hurting the stock market, then you know he’s going to stop. So this is so obvious that a reporter even asked Trump about this, and I want to show you his reaction.

You’ve been influenced by some of these exemptions that have been announced and some of these temporary delays. Have you been influenced in those decisions because of the market reaction? Well, there were no delays at all. No, nothing to do with the market.

I’m not even looking at the market because long term, the United States will be very strong with what’s happening here. Okay, so you just saw that. Trump is saying that he’s not even looking at the stock market, but we all know, I mean, that is a flat-out lie.

Of course he is. And here’s the fourth thing. So I want to bring this to your attention.

There is speculation. Of course, this is just speculation. 25% tariffs on Mexico and Canada would devastate the U.S. economy and the stock markets, right? Long story short, inflation would spike.

The Federal Reserve wouldn’t be able to cut interest rates anytime soon, and the stock market would crash. Now, there is speculation that Trump is intentionally trying to crash the stock market so that the wealthy can buy up the market and assets on the cheap. So this is called disaster capitalism, which I dedicated a video to.

It would be an opportunity for the uber wealthy to become even more wealthy. I also want to point out that in my Great Melt Up series, I clearly stated that the government will manufacture a crisis so that the Federal Reserve can cut interest rates and the U.S. government can refinance their debts at a much lower interest rate. As I explicitly said, I don’t know what the manufacture crisis is going to be, whether it’s going to be war, a pandemic, tariffs, a black swan event.

Okay, so I just wanted to share with you what I’m seeing, what I did, and if there’s any further weakness in the stock market, then I’m going to be ready. In the long run, stocks just go up. That’s all for today.

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