The First 100 Days of Trump: Tariffs, Controversies, and an Economy on Edge

The First 100 Days of Trump: Tariffs, Controversies, and an Economy on Edge

A Celebration Marked by Polarization

Triumphalist Speech and Fulfilled Promises

At a massive rally in Michigan, President Donald Trump celebrated what he called “the most successful 100 days of any administration in U.S. history.” In a clearly triumphalist and campaign-style tone, the president listed executive orders, immigration actions, and economic reforms that, according to him, brought common sense back to Washington.

Among the highlighted measures, he mentioned the return of domestic manufacturing, tougher immigration policies, and, curiously, the elimination of paper straws. “We’ve accomplished more in three months than other governments in four or eight years,” he proclaimed to an enthusiastic crowd.

But it wasn’t just a rundown of achievements. Trump took the opportunity to go after his usual enemies: the press, the judiciary, and the radical left, whom he called “communist lunatics” and “enemies of the people.”

Divided Opinions Among Supporters and Critics

The enthusiasm of his supporters contrasted with the growing disapproval across the rest of the country. “Everything he does makes us happy. He’s delivering,” said a Republican voter. For many of his loyal followers, border control was the greatest accomplishment of the early days of his mandate.

However, polls tell a different story. According to recent data from Ipsos, only 42% of Americans approve of his performance — a figure representing the lowest presidential approval rating in the past eight decades. Trump dismissed these results, claiming sample manipulation and insisting that his true approval rating would be “60% or 70% if the polls were legitimate.”

Outside the venue, counter-protesters warned of an authoritarian shift. They accused the president of undermining the Constitution, attacking immigrants, and eroding democratic institutions. “We are facing a fascist coup and a constitutional crisis,” said one demonstrator.

The Tariff War and Its Global Impact

“Liberation Day” and the Market Reaction

On April 2, the Trump administration proclaimed what it called “Liberation Day,” marking the start of an unprecedented global tariff offensive. The new tariffs not only targeted strategic rivals but also key trade partners and historic allies. The reaction was swift and severe: global financial markets collapsed, and the S&P 500 dropped more than 10% within days.

S&P 500 falls. Source: Yahoo Finance

Trade media dubbed the event “Day of Ruin” or even “Day of Obliteration.” The economic uncertainty and the magnitude of the tariffs led to a loss of trillions of dollars in market value, with a ripple effect on global investment.

Financial Instability and Frozen Investments

Amid market chaos, the Trump administration announced a temporary suspension of tariffs — except for China — for 90 days. While the move brought some immediate relief, it failed to restore trust. Investors and companies feared these policies could lead to a self-inflicted recession.

Companies such as Novartis (NOVN) announced major investments in U.S. soil, responding to the protectionist call. However, others like Pirelli and Tata Technology postponed their plans, citing a lack of clarity in trade policy.

Even the U.S. dollar, traditionally a financial safe haven, took a hit. Compared to Trump’s inauguration day, it lost nearly 12% of its value, reaching its lowest point in three years.

From Imposition to Retraction: An Uncertain Strategy

Trump’s flip-flopping created the perception of an improvised strategy. First, he imposed severe tariffs, then paused them. He promised long-term benefits but instead sowed a climate of distrust that paralyzed investment decisions and curbed consumer spending.

The president justified the tariffs as a way to pressure countries that, according to him, take advantage of the U.S. through non-tariff barriers. But for many analysts, a foreign policy based on commercial intimidation rather than diplomatic negotiation is producing counterproductive results.

Deterioration of U.S. Foreign Policy

Tensions with NATO and Historic Allies

Trump’s foreign policy in this new term has been marked by abrupt breaks with established norms and aggressive unilateralism. In March, the president shocked Europe by declaring that the U.S. would not defend NATO members who failed to meet established military spending thresholds. This statement directly challenges Article 5 of the NATO treaty, which guarantees collective defense in the event of an attack.

His words left European leaders alarmed. The reliability of the U.S. as a guarantor of transatlantic security has been called into question, leading to urgent debates about Europe’s need to strengthen its strategic autonomy.

Volatility in Relations with Ukraine and the Middle East

In the case of Ukraine, the Trump administration has swung between scorn and diplomatic support. While he publicly blamed the country for the conflict with Russia, weeks later he held conciliatory meetings with President Zelensky in the Vatican. These flip-flops have caused confusion in the international community.

In the Middle East, the stance has been less ambiguous but equally controversial. Trump has given unconditional support to Israeli Prime Minister Benjamin Netanyahu, despite the stalled peace process in Gaza. He has also intensified airstrikes against the Houthis in Yemen, deepening U.S. involvement in a complex regional conflict.

A Transactional View of Global Power

In his second term, Trump has replaced traditional multilateralism with a transactional view of geopolitics. He has expressed intentions to acquire territories such as Greenland, the Panama Canal, and even Canada, reaffirming a position that prioritizes commercial and territorial expansion interests over diplomatic alliances.

European leaders no longer trust the U.S. to remain a stable anchor of the global order. Instead of dialogue and cooperation, Washington offers aggressive deal-making, unstable promises, and veiled threats — leaving many governments wondering how to adapt to this new paradigm without a clear compass.

Domestic Economy: Eroded Confidence and Fear of Recession

The Dollar Falls and the Federal Reserve in the Crosshairs

One of the most notable effects of Trump’s economic policy in these first 100 days has been the deterioration of the dollar’s value. While periods of global uncertainty traditionally strengthen the U.S. currency, this time the opposite occurred: the dollar fell to its lowest level in three years, reflecting declining confidence in the country’s economy.

US dollar falls against the Euro. Source: Onvista

The president has directed his criticism at the Federal Reserve and its chairman, Jerome Powell, demanding a reduction in interest rates. According to Trump, this measure would stimulate growth. However, Powell has insisted that lowering rates could worsen inflation and cause more harm than good, thereby intensifying tensions between the White House and the central bank.

Public Opinion Declines Regarding Economic Policies

While Trump insists his trade policy will yield long-term benefits, public perception is increasingly critical. A Pew Research survey revealed that nearly 6 out of 10 Americans disapprove of his tariff policies. The volatility of his decisions and the immediate impact on markets and prices are raising concerns even among independent voters.

Don’t miss our related article exploring the “Fear Index” or VIX and how it influences financial markets.

Citizens are beginning to feel the effects of protectionist measures in their daily lives — from the rising cost of imported goods to growing job uncertainty. And while Trump claims the pain is temporary, the lack of tangible short-term results undermines his narrative of economic efficiency.

Businesses Paralyzed by Political Uncertainty

Beyond financial markets, the real economy is also feeling the Trump effect. Economic analysts warn that regulatory and trade uncertainty could cost the U.S. up to one percentage point in GDP growth. For an economy the size of the United States, this equates to billions of dollars lost.

Fears of trade retaliation, unexpected new tariffs, or abrupt shifts in foreign policy have led many businesses to freeze investments, postpone hiring, and adjust their growth expectations. This paralysis affects not only large corporations but also small and medium-sized enterprises, which depend on a predictable economic environment to make strategic decisions.

Where Is the U.S. Headed in This New Era?

Dismantling Global Leadership

Throughout these first 100 days, Donald Trump’s policies have demonstrated a systematic withdrawal of the United States from its traditional role as global leader. The cancellation of foreign aid programs — such as the shutdown of USAID under consultant Elon Musk — has halted the delivery of essential food and medicine to vulnerable populations. The direct consequence has been increased pressure on other countries to fill the humanitarian void.

In terms of international policy, Washington has abandoned multilateral diplomacy in favor of a self-interest-centered approach, eroding its reputation as a reliable partner and triggering a realignment of global alliances.

Europe’s Response and the Rise of New Alliances

Facing instability from Washington, Europe is beginning to seek alternatives. Doubts about the U.S. commitment to European security — especially in the event of an attack on a NATO member — are driving conversations about greater autonomy in defense.

Moreover, the European Union is exploring stronger alliances with powers like Japan, Canada, and Australia, and even cautious détente with China, to counterbalance the void left by the U.S. The emerging consensus is clear: a power that swings between diplomacy and provocation can no longer be relied upon.

The Long Road Ahead

With nearly four years still remaining in his second term, the path the United States will take under Donald Trump remains unpredictable. Swift executive decisions, shifting stances, and the lack of a clear strategy have left both citizens and allies questioning what vision for the future truly guides the White House.

Analysts agree that the rest of the term may be marked by deepening internal divisions, further international tensions, and growing pressure on the world order established after World War II.

What is clear, for now, is that the world is reorganizing without the United States at its center. The consequences of this transformation remain to be seen — but its impact is already undeniable.

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Ignacio N. Ayago CEO Whale Analytics & Mentes Brillantes

Permíteme presentarme: soy Ignacio N. Ayago, un emprendedor consolidado 🚀, papá con poderes 🦄, un apasionado de la tecnología y la inteligencia artificial 🤖 y el fundador de esta plataforma 💡. Estoy aquí para ser tu guía en este emocionante viaje hacia el crecimiento personal 🌱 y el éxito financiero 💰.

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