- Trump urges buying stocks during tariff volatility; Schiff warns, cites Eric Trump’s false ETH call
- Markets rallied recently (on other tariff pause?) despite China tariff hike
- Context: Conflicting signals (Trump vs CEOs/Schiff) highlight deep uncertainty
The U.S. stock market has been volatile this week, reacting to fast-moving news on President Trump’s tariff policies. With markets unsteady, Trump posted a message telling Americans to stay calm and buy stocks.
But market analyst Peter Schiff quickly hit back at the advice, saying following it might be as risky as taking investment tips from Eric Trump about Ethereum.
Why Compare Trump’s Advice to Eric Trump’s ETH Call?
On February 3rd, Eric Trump recommended investing in Ethereum. ETH’s price has dropped about 49% since then.
Schiff suggested the President’s optimism now could similarly lead investors into trouble, especially with markets already shaky from trade policy shifts.
Related: Bitcoin’s Trump Tariff Test: Down to $82k, Can $78k Support Endure?
How Are Tariffs Affecting the Market Now?
Recent market jumps followed news Wednesday morning of a 90-day pause on some planned US tariff hikes. This provided temporary relief, even though steep (reportedly 104%) US tariffs on Chinese goods remain active.
China responded quickly to the US tariffs with its own 84% tariff charge on American imports and is also said to be considering a ban on U.S.-produced films.
Despite early fears of a catastrophic market reaction, Wall Street opened higher. The S&P 500 rose 1.12%, the Dow climbed 0.74%, and the Nasdaq gained 2.05% within the first 30 minutes of trading.
Related: Trump Tariffs Shock Markets: Crypto Loses $100B, Bitcoin Price Unstable
These gains, however, reflect only a brief window of investor enthusiasm. The same pattern was seen Tuesday, when markets soared in early trading on hopes of international deals, only to tumble by day’s end after confirmation of the tariffs.
Apple, a company heavily impacted by global trade, saw its stock bounce slightly early Wednesday (+3.96%) after losing a reported $1 trillion in market value over four prior sessions.
That relief bounce aside, the broader market mood stays cautious, given the ongoing US-China friction and potential Chinese countermoves like film bans.
Who Should Investors Believe: Trump or the CEOs?
While traders weighed Trump’s “buy” message against the tariff pause relief, other influential voices sounded alarms.
JP Morgan Chase CEO Jamie Dimon, warned the U.S. is likely heading for a recession if this kind of tariffs continue. Others like Treasury Secretary Scott Bessent and entrepreneur Elon Musk are reportedly pushing for more deal-making instead of just hiking tariffs.
Moreover, White House Press Secretary Karoline Leavitt insisted that many countries want trade deals with the U.S. However, few major new agreements seem final, leaving markets looking for actual deals, not just talk.
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