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What to Expect Next if Trump’s Tariff Gambit Escalates
Don’t Try to Hopscotch in the Rain
Teeka Tiwari
April 11, 2025
What to Expect Next if Trump’s Tariff Gambit Escalates
On March 18, 2020, while everyone worried about the impact pandemic lockdowns would have on our economy…
I sent this note to readers of my previous newsletter:
Friends, with the near collapse of global trade caused by the coronavirus… you can expect central banks [to] issue stadium-sized stacks of paper money to fund their respective governments.
The previous week, the S&P 500 and bitcoin had plunged by as much as 10% and 38%, respectively. It was a bloodbath.
I knew the Federal Reserve would print more money. So I told my readers to buy more bitcoin.
Sure enough – just five days later – the Fed announced its “infinite cash” policy and promised it would print unlimited amounts of money.
After the Fed turned on the money spigot, bitcoin exploded 1,688% over the next two years, just as I predicted. And as bitcoin goes, so does the rest of the crypto market.
Altcoins I recommended during this period like Status (SNT), Ethereum (ETH), and Enjin (ENJ) took off like rockets, going up 2,835%, 4,771%, and 15,041%, respectively.
While most Americans were watching their purchasing power evaporate, my readers had a chance to not only protect their wealth… But grow it by leaps and bounds.
Friends, here’s why I’m taking you down memory lane…
Since President Trump imposed a new global tariff regime on April 2, we’ve seen pandemic-type levels of volatility.
On Tuesday, the S&P 500 dropped as much as 6% after China announced retaliatory tariffs against U.S. imports to that country.
However, the very next day, President Trump adjusted his policy to 10% universal tariffs and put a 90-day hold on reciprocal tariffs (except those against China).
That shift triggered a monster rally on Wednesday that saw the S&P 500 rise 9.4%, the Nasdaq 11.8% and the Dow up 8.7%.
Yet on Thursday, when the euphoria over the 90-day pause had faded, the market clawed back nearly all of the previous day’s gains.
Look, the market has reason to worry about such steep tariffs. Investors believe the tariffs will, at best, act as a temporary drag on global trade. Or worse, trigger a recession.
That’s why I refer to the tariffs as “Lockdown Lite.”
Like the pandemic restrictions, tariffs could force business closures and mass layoffs. If that’s the case, I expect the Fed to come to the rescue again.
Friends, I don’t have a crystal ball. So I don’t know how the U.S. government and its trade partners will resolve these tariff negotiations. Or when the Fed will leap in and bail out the market if the talks fail.
Regardless, I want to prepare you for the possibility the market and economy might get much worse before they get better.
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