Grim Outlook: Wall Street Biggies Turns on Trump as Tariff Shock Triggers Global Market Meltdown:
April 7, 2025: Wall Street’s biggest names are voicing deep concern over US President Donald Trump’s sweeping new tariff plan, which has already sent global markets spiraling. As Trump’s 10% baseline tariff on all imports took effect on Saturday, April 5, a majority of top institutional investors and billionaire financiers now say they fear the economic consequences could be severe.
According to a Forbes survey of the Top 50 Wall Street investors, over 72% now believe Trump’s economic strategy is ineffective, including many who initially backed his return to office earlier this year. About 66% of respondents say they don’t support Trump’s current economic policies—highlighting a stark divide between political allegiance and economic pragmatism.
The Forbes poll revealed brutal ratings for Trump’s policies across the board:
“The president is failing on execution,” said one investor. “There’s no coordinated strategy—just chaos and headlines.”
The immediate market fallout has been dramatic:
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Markets across Asia, Europe, and the US suffered their biggest single-day declines since the 2020 pandemic. China’s retaliation—a 34% tariff on all US goods—deepened the slide, prompting fears of a prolonged and bitter trade war.
“It’s alarming and unsettling,” said Anh Tran, managing partner at SageMint Wealth. “Everyone is thinking about how to create downside protection now.”
Top economists echoed investor concerns. Morningstar’s Preston Caldwell warned that Trump’s tariffs could trigger a “self-inflicted economic catastrophe.”
“These tariffs will permanently reduce U.S. GDP and hit consumers through higher prices,” Caldwell noted.
UBS projects sub-2% GDP growth for 2025, while Deutsche Bank warns the figure may fall even lower, raising the specter of stagflation.
“We expect weaker earnings, slower growth, and rising inflation,” said Adam Turnquist of LPL Financial. “It’s a terrible mix for equities.”
While the auto sector remains relatively insulated due to existing protections, industries like clothing, retail, and electronics—heavily reliant on Chinese and Southeast Asian imports—are expected to be hit hardest.
Companies are now scrambling to reorganize supply chains and hedge against currency volatility. With rising input costs and lower consumer spending, corporate earnings forecasts are being slashed.
Investor sentiment has done a complete U-turn in just two months since Trump’s re-election.
“Few could have predicted this rapid erosion of optimism,” said Chris Zaccarelli, CIO at Northlight Asset Management. “Wall Street is losing faith fast.”
The report highlights how Trump’s unilateral tariff moves—combined with volatile execution—are unsettling both markets and institutional backers. For now, traders are bracing for more shocks as the global economy adjusts to the new tariff regime.
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Donald Trump, US tariffs, Wall Street reaction, trade war, US economy, global markets crash, reciprocal tariffs, Trump policies, investor sentiment, S&P 500, Dow Jones, NASDAQ, inflation fears, GDP slowdown, US-China trade, market outlook, global recession, financial news
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