Not only Wall Street is shocked, but also the American business community. The biggest misunderstanding of "Trump 2.0": tariffs are not a means, but a goal!

Reports indicate that Trump believes tariffs are not just a "bargaining chip," but rather a "panacea" for solving American problems.

Recently, The New York Times published an in-depth report written by three veteran journalists, Jonathan Swan, Maggie Haberman, and Ana Swanson, revealing President Trump's true stance on tariffs.

The article points out that many American business leaders mistakenly believe that tariffs are merely Trump's negotiation tool, but the reality is that he views tariffs as an end in themselves, aiming to reshape America's economic position through this unilateral approach, which has raised profound concerns about the "Trump 2.0" governing style and future economic direction.

According to the report, President Trump's attitude towards tariffs exceeds many people's expectations. He not only sees tariffs as a "panacea" for solving America's trade deficit but also as an important way to exercise presidential power. This stance has not only impacted the automotive industry but has also shocked the entire American business community.

"The shock of Trump's second term lies in the fact that he truly believes in the statement he has publicly proclaimed for forty years: foreign countries are exploiting America, and tariffs are the panacea for American problems."

"When he says 'tariff' is the most beautiful word in the dictionary, he means it."

Trump's "Affinity" for Tariffs Exceeds Expectations

The article begins by quoting Trump's conversation with the three major American automakers (General Motors, Stellantis, and Ford), highlighting the core of Trump's tariff policy.

During the call, Trump clearly stated that tariffs would take effect on April 2 and demanded that they "be prepared and cooperate." This clearly conveys a message: tariffs are not just a negotiation tool, but a goal he intends to achieve.

For the business community, this shift is unexpected. Many corporate executives believed that Trump would, as in the past, use tariffs as a bargaining chip to secure more favorable trade conditions. They even invested large sums of money to hire consultants to interpret Trump's policies.

However, the reality is that Trump views tariffs as a means to "make America wealthy again." As quoted in the article, "his affinity for tariffs transcends their mere role as negotiation tools."

Based on interviews with more than a dozen officials from the Trump administration and relevant White House personnel, the report indicates that the business community is rapidly reassessing the optimistic assumptions about "Trump 2.0" since election day and needs to adapt to the new trade policy environment.

Is the Stock Market No Longer Trump's "Barometer"?

During Trump's first term, the performance of the stock market seemed to significantly influence his tariff policies. Therefore, the business community has long believed that the stock market is Trump's "barometer."

However, the facts indicate otherwise.

Since the Trump administration began pushing for tariff measures, the Dow Jones Industrial Average has fallen by more than 600 points, and the S&P 500 index has entered a technical correction, yet these market reactions have not shaken Trump's stance Data shows that during his first term, Trump implemented trade policies on products worth over $300 billion; now, in less than two months in office, he has taken measures on approximately $1 trillion worth of goods.

The article cites the opinion of a Trump advisor, who believes that Trump has realized that the stock market is no longer a "foolproof" indicator of the economy's future and voter sentiment. The advisor argues that if the stock market were a reliable indicator, President Biden, who governed during a booming stock market, should be able to secure re-election.

The team has little dissent, clearing obstacles for "Trump 2.0"

The report also states that one of the biggest differences between Trump's second term and his first is that he is more confident in his instincts and is equipped with a team that shares his views. He rarely hears strong dissent regarding his economic policies.

During his first term, Trump faced fierce opposition from those who believed that trade measures would raise costs for consumers and businesses and slow down the economy. His team included some figures he mocked as "globalists," such as then-Treasury Secretary Steven Mnuchin and economic advisor Gary Cohn.

Today, the situation is completely different. Treasury Secretary Bentsen was a hedge fund executive, and Commerce Secretary Rutenik was the CEO of Wall Street firm Cantor Fitzgerald, both of whom publicly supported Trump's trade stance before taking their positions.

The report states that regardless of how they privately view these policies, no one is now sitting across the desk strongly opposing Trump's economic ideas.

The article cites analysts' views that changes in the decision-making environment have led to increased consistency in policy execution, "when the advisory team shares the same ideology as the leader, the implementation of policies is more resolute."

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