The White House on Tuesday defended President Donald Trump‘s economic policies amid sharp declines in the stock market, rejecting the notion that his administration bears responsibility for the financial turmoil.
Press Secretary Karoline Leavitt, speaking to reporters in the White House briefing room, downplayed concerns over market volatility, describing the situation as “a snapshot of a moment in time” and framing the downturn as part of a necessary economic transition.
“The president has been working hard every single day to alleviate the pain that was inflicted by the previous administration,” Leavitt said, dismissing concerns about long-term instability.
Why It Matters
U.S. financial markets have been on edge following Trump’s announcement of new tariffs on steel and aluminum imports from Canada, a move that many analysts say has fueled economic instability.
Despite the White House’s optimism, the Dow Jones Industrial Average and the S&P 500 have seen significant losses, with analysts attributing the volatility to heightened trade tensions and concerns about economic growth. Consumer confidence has dropped to its lowest level since August 2021, while job cuts among U.S. employers have increased.
What To Know
The dominant story in the White House Press Briefing Room on Tuesday was the continued decline of the U.S. stock market following Trump’s first weeks in office, with Wall Street briefly dropping 10 percent below its record high set just weeks ago.
When asked whether Trump bore any responsibility for the market turmoil, Press Secretary Karoline Leavitt avoided direct blame, instead emphasizing the administration’s long-term economic strategy.
“We are in a period of economic transition…from the mess that was created by Joe Biden,” she said, reiterating that Trump remains committed to restoring American manufacturing and global economic dominance.
Photo by Andrew Harnik/Getty Images
Leavitt also downplayed the significance of market fluctuations, despite Trump previously touting stock gains as a measure of his success. In a Fox News interview on February 9, Trump called the market’s performance “an amazing achievement.”
“When it comes to the stock market, the numbers we see today, yesterday, and tomorrow are just a snapshot in time,” Leavitt told reporters.
Still, she reassured investors that Trump remains focused on economic recovery. “People on Wall Street and Main Street should bet on this president,” she said.
However, financial analysts remain skeptical. Trump’s previous reliance on stock market gains as validation of his economic agenda has now shifted, with the administration preparing Americans for what it calls a necessary “detox period” in the economy.
Tariff Strategy Sparks Backlash
Market instability has been linked to Trump’s aggressive trade policies, including new tariffs on Canadian metals. When asked whether Canada remains a close ally—given Trump’s suggestion that the country might be better off as the 51st U.S. state—Leavitt’s response raised eyebrows.
“Canada is a neighbor. They are a partner. They have always been an ally,” she said. “Perhaps they are becoming a competitor now.”
She added that Trump believes Canadians would benefit from U.S. statehood. “He believes Canadians would benefit greatly from becoming the 51st state of the United States of America,” she said.
Meanwhile, Canadian officials have pushed back. Ontario Premier Doug Ford has threatened a 25 percent surcharge on electricity exports to the U.S. in retaliation for the tariffs.
“The president is unwavering in his commitment to restoring American manufacturing and global dominance,” Leavitt insisted. “He doubled down on that this morning with his statement and the tariffs that take effect tomorrow on steel and aluminum.”
Recession Fears
The administration has yet to rule out the possibility of a recession. Over the weekend, Trump acknowledged that his policies could cause short-term economic turbulence but insisted they were necessary for long-term growth. Leavitt echoed that stance.
“The president has been working hard every single day to alleviate the pain inflicted by the previous administration,” she said.
Photo by Spencer Platt/Getty Images
When pressed on whether financial markets lacked confidence in Trump’s economic approach, she responded, “Many people feel confident about the economy.”
Also, during a heated exchange, Fox News reporter Peter Doocy pressed Leavitt on whether anyone in the White House had profited from the market downturn.
“You said the Dow dropping and dropping is part of a transition. Are you sure nobody here at the White House shorted the Dow?” Doocy asked.
Leavitt laughed off the question. “No, I don’t think so,” she responded.
What People Are Saying
Karoline Leavitt, White House Press Secretary, told reporters: “When it comes to the stock market, the numbers we see today, the numbers we saw yesterday, the numbers we will see tomorrow, are a snapshot in a moment in time.”
Lawrence J. White, an economics professor at NYU’s Stern School of Business, told Newsweek: “Investors believe these measures will negatively impact corporate profits. Many American companies will suffer, and then there’s the issue of retaliatory tariffs from other countries—something Mr. Trump doesn’t seem to have fully considered.”
President Donald Trump during his address to Congress last week: “Tariffs are about making America rich again and making America great again. And it’s happening. And it will happen rather quickly. There’ll be a little disturbance, but we’re OK with that. It won’t be much.”
What Happens Next
More uncertainty looms for the U.S. stock market, with some economists warning of a possible recession by the end of the year.
Update: 3/11/25, 3:02 p.m. ET: This article has been updated with additional information.
