Trump's Tariffs Take a Market Tumble: Can the Financial World Check His Power?

Wall Street's Reaction to Trump's Trade Policies Highlights the Power of Global Finance.

The return of Donald Trump to the White House has ushered in significant shifts in international geopolitics and the landscape of United States governance. Traditional constraints that once limited the actions of American presidents seem ineffective in the face of his approach. However, recent events this month suggest there is one potent force that can potentially temper his actions: the financial markets.

As reported by Agence France-Presse, following Trump's announcement on May 2nd regarding a global, reciprocal tariff measure, the Wall Street stock market saw a dramatic decline. Within a mere two days, approximately $6 trillion USD (around NT$192 trillion) in market value vanished. The S&P 500 index experienced its largest single-day drop since the peak of the COVID-19 pandemic in 2020.