Trump addresses stock market losses, China trade deficit

The president spoke with reporters aboard Air Force One on Sunday.

ByAlexandra Hutzler, Ivan Pereira, William Mansell, and Max Zahn
Last Updated: April 7, 2025, 2:30 AM EDT

The fallout continues after President Donald Trump's unveiling of severe tariffs against virtually all U.S. trading partners.

On Sunday, ABC's "This Week" anchor George Stephanopoulos pressed White House National Economic Council Director Kevin Hassett about Trump reposting a video that said he was tanking the markets to force the Fed to lower interest rates. Hassett said Trump was entitled to his opinion, but denied that his tariff policy was intended to put pressure on the Fed to lower rates.

Trading on Thursday and Friday marked the worst days for U.S. stocks since 2020.

Key Headlines

Here's how the news is developing.
Apr 04, 2025, 10:29 AM EDT

Trump says China 'played it wrong' in apparent response to Beijing's retaliatory tariffs

President Donald Trump appears to be responding to China's announcement of a retaliatory tariff against all U.S. goods.

"CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!" Trump posted on his social media platform on Friday.

Chinese President Xi Jinping speaks during an international business meeting at The Great Hall Of The People on March 28, 2025 in Beijing, China.
Ken Ishii/Pool/Getty Images

The president has no public events on his schedule, but has been posting on his social media site frequently as backlash to his tariff plan continues.

Apr 04, 2025, 10:05 AM EDT

Stock market drops further in early Friday trading

The stock market fell further on Friday, with major indexes down at opening.

The Dow Jones Industrial Average plummeted 925 points, or 2.25%, while the S&P 500 dropped 2.4%. The tech-heavy Nasdaq declined 3%.

The slumps come after China announced retaliatory tariffs against the U.S. overnight.

Traders work on the floor at the New York Stock Exchange (NYSE) in New York City, April 3, 2025.
Brendan Mcdermid/Reuters

Apr 04, 2025, 9:16 AM EDT

Trump tells investors his 'policies will never change'

Ahead of the markets opening on Friday, President Donald Trump posted on his social media platform a message for investors.

"TO THE MANY INVESTORS COMING INTO THE UNITED STATES AND INVESTING MASSIVE AMOUNTS OF MONEY, MY POLICIES WILL NEVER CHANGE. THIS IS A GREAT TIME TO GET RICH, RICHER THAN EVER BEFORE!!!" he posted.

The president did not specify which specific policies he was referring to, though the post comes as his tariff plan rattles the economy.

Apr 04, 2025, 9:14 AM EDT

Rubio acknowledges 'markets are crashing' but says they'll adjust

Secretary of State Marco Rubio rejected the premise that economies would enter a downturn after the announcement of Trump's tariffs but acknowledged that markets are experiencing volatility as businesses realize production norms are facing changes.

"So I don't think it's fair to say economies are crashing," Rubio said. "Markets are crashing because markets are based on the stock value of companies who today are embedded in modes of production that are bad for the United States."

"But ultimately, the markets, as long as they know what the rules are going to be moving forward, and as long as that's set and you can sustain where you're going to be, the markets will adjust," he said.

-ABC News' Chris Boccia

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