[Trump’s First 100 Days] Tariff Overdrive Backfires ... 'Sell America' and Waning Public Support

U.S. Stock Market Down 8% and Dollar Down 9% After Trump’s Inauguration
'Sell America' Trend Amid Tariff Bombs
Anti-Trump Sentiment Spreads Inside and Outside the U.S.
Presidential Approval Rating at Lowest in Over 70 Years on 100th Day

As of April 29 (local time), President Donald Trump of the United States marks his 100th day in office. Among the policies that have brought the greatest shock and confusion to the world, his trade policy stands out above all. Having branded himself as the 'economic president' and succeeded in his re-election, he waged a tariff war against the world under the 'America First' doctrine, targeting both allies and adversaries indiscriminately. The abrupt shift in U.S. policy led to a collapse of trust in the international community and triggered a 'Sell America' phenomenon, where U.S. assets were dumped.

Even Americans who delivered a 'Red Wave' (the red color symbolizing the Republican Party) to President Trump in last year's presidential and congressional elections have begun to turn away. Amid negative assessments of his economic policies, including tariffs, President Trump's approval rating has been on the decline ahead of his 100th day in office. In some polls, he has recorded the lowest approval rating in over 70 years, and the early 'honeymoon effect' of his presidency has quickly dissipated.

AP Yonhap News

After Trump’s Inauguration, U.S. Stock Market Down 8% and Dollar Down 9% ... 'Sell America' Amid Tariff Bombs

According to the global financial markets on April 27 (local time), the S&P 500 index, the representative U.S. stock index, fell by 7.86% from President Trump’s inauguration through April 25. The value of the U.S. dollar also plummeted. The dollar index, which measures the value of the dollar against the currencies of six major countries, dropped by 9.11% over the same period. This is the largest decline recorded during the first 100 days of a U.S. presidency since former President Richard Nixon.

From November 5 of last year, the day after the presidential election, until the day before the inauguration, the S&P 500 index and the dollar index each rose by about 5%. This reflected expectations for President Trump’s pro-market stance, but within just over three months of his inauguration, all post-election gains were erased and the trend reversed into a decline.

The cause of the Sell America phenomenon is President Trump’s tariff policy. Earlier this month, he declared a 'Day of Liberation' and announced reciprocal tariffs on all U.S. trading partners. Taking into account each country’s tariff rates, exchange rates, and non-tariff barriers such as regulations, he imposed ultra-high tariffs ranging from at least 10% (for the United Kingdom) up to 125% (for China) depending on the country. He set these country-specific tariff rates arbitrarily, aiming to reduce the U.S. trade deficit to zero. As the U.S. disregarded alliances, values, and the international order in pursuit of extreme national interest and pragmatism, global trust in dollar assets evaporated. Investors sold not only stocks, which are considered risky assets, but also U.S. Treasury bonds and dollars, which are regarded as the world’s safest assets.

Barry Eichengreen, a professor at UC Berkeley, warned, "Global trust and reliance on the dollar have been built up over more than half a century," and cautioned that due to the chaotic tariff policy, "such trust and reliance can vanish in the blink of an eye."

Reuters Yonhap News

Anti-Trump Sentiment Spreads Inside and Outside the U.S. ... Approval Rating at Lowest in Over 70 Years

As U.S. Treasury yields surged by 50 basis points (1bp=0.01 percentage point) in just three days (meaning bond prices plummeted), President Trump eventually announced a 90-day suspension of reciprocal tariffs. The flip-flopping policy of imposing tariff bombs and then granting suspensions or exemptions has further intensified market uncertainty and confusion. Companies have postponed investment decisions, and consumer sentiment has rapidly frozen. Concerns about an economic recession are deepening. President Trump’s signature shock tactics (madman theory) are also losing their effectiveness, and there are growing predictions that the tariff war could become prolonged. China, the biggest rival, is responding with retaliatory tariffs and maintaining a firm stance. Canada and the European Union (EU) have also announced countermeasures and are not easily yielding to President Trump’s pressure.

Reuters Yonhap News

Public opinion within the United States is deteriorating rapidly. As President Trump approaches his 100th day in office, a series of local polls show his approval rating is on the decline. On this day, both the Washington Post (WP) and CNN reported that President Trump’s approval rating is lower than that of major previous presidents. According to the WP, President Trump’s approval rating stands at 41%, significantly lower than President Joe Biden (57%), President Barack Obama (65%), and President George W. Bush (62%) at the same point in their terms. In the CNN poll, President Trump’s approval rating was also 41%, the lowest 100-day approval rating since former President Dwight Eisenhower, who served from 1953 to 1961.