Market Data 
As Trump tests the limits of presidential power, Wall Street emerges as the final check — swift, impersonal, and impossible to ignore.
Since returning to the White House in January 2025, Donald Trump has pursued his “America First” agenda with renewed determination. From escalating trade wars to firing top officials, Trump has shown himself largely resistant to criticism — whether it comes from advisors, allies, economists, or foreign leaders.
Yet amid this aggressive approach, one force continues to exert real influence over him: Wall Street.
Since March 2025, Wall Street’s sharpest declines have followed immediately after Trump’s most destabilizing announcements, sending unmistakable warnings to the White House.
The April 2025 “Trump Thump”
The most striking example came in early April. On April 2, Trump introduced sweeping tariffs, dubbed “Liberation Day,” imposing a 10% baseline tariff on nearly all imports, with much higher rates for specific countries: 54% on Chinese goods, 20% on European Union imports, and up to 49% on imports from Vietnam and Cambodia.
Markets reacted swiftly and severely:
- On April 3, the S&P 500 fell by 6.65%, the Dow Jones Industrial Average dropped 1,679 points (approximately 4%), and the Nasdaq Composite declined by nearly 6%.
- On April 4, after China retaliated with a 34% tariff on U.S. imports, the markets plummeted further: the Dow plunged 2,231 points (5.5%), the S&P 500 lost 5.97%, and the Nasdaq fell 5.8%, officially entering bear market territory.
Over these two days, U.S. stock markets lost approximately $6.6 trillion in value — marking the largest two-day market loss in American history. Analysts quickly dubbed the episode the “Trump Thump,” highlighting the profound financial consequences of abrupt trade policy shifts.
When Wall Street Speaks, Trump Listens
This was not an isolated incident. On March 18, Trump’s threats to “decouple” from European markets triggered an immediate sell-off: the Dow fell 860 points (2.4%) and the S&P 500 dropped 2.1%.
A week later, on March 25, Trump abruptly dismissed Federal Reserve Chairman Jerome Powell, provoking further panic: the Dow dropped 930 points (2.7%) and the S&P 500 declined by 2.5%.
In each case, Wall Street — not public protests, not diplomatic pressure, not editorial outcry — forced Trump to recalibrate his tactics. The markets deliver consequences that even Trump, with his political resilience, cannot afford to dismiss.
MAGA Depends on a Bull Market
Trump’s political brand is tied to economic strength. The promise to “Make America Great Again” relies heavily on booming stock markets, strong retirement accounts, and rising household wealth. A prolonged bear market would directly undercut his message and threaten his electoral prospects.
Moreover, in the American psyche, Wall Street symbolizes more than corporate wealth — it reflects personal opportunity and the realization of the “American Dream.” Millions of American families have a direct stake in the market’s performance.
Trump, who keenly understands the political symbolism of a soaring Dow or a collapsing one, knows that he cannot ignore the markets without risking severe political damage.
Wall Street: The Ultimate Check
At a time when traditional checks and balances are often tested or bypassed, Wall Street remains an impartial judge of presidential policy. It reacts to risk in real time — without ideology, without diplomacy, without spin.
As the “Trump Thump” so vividly demonstrated, Wall Street is the last force that can still restrain Trump.
Trump’s Recent Backtracks Show Wall Street’s Influence
Recent weeks have provided clear evidence that Trump listens when Wall Street speaks. Following the April selloff, Trump quickly announced “flexibility” on certain European tariffs, reopened negotiations with China instead of escalating retaliation, and issued a statement affirming his “full confidence” in the Federal Reserve, hinting he might not replace Powell immediately after all. These reversals, although partial, demonstrate a clear pattern: when market turmoil threatens the foundations of economic confidence, Trump pragmatically adjusts his stance.
If fully implemented, the measures he had already outlined by early March were widely expected to trigger a sustained contraction in U.S. corporate profits, which would, in turn, lead to a prolonged decline on Wall Street — as I explained in my March 12 LinkedIn post titled “Anatomy of a looming bear market following Trump’s chaotic economic measures.”
In the end, for all his defiance on the world stage, Trump remains bound to the one master he cannot ignore: the judgment of Wall Street.
The views expressed in this article are those of the author.
Sam Rainsy, Cambodia’s finance minister from 1993 to 1994, is the co-founder and acting leader of the opposition Cambodia National Rescue Party (CNRP).
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