Donald Trump’s grip on markets has loosened, but tariffs remain his sharpest tool. JPMorgan data shows his economic posts rarely shake currencies now—just 10% have done so compared to 60 market-moving tweets per week during the peak of the US-China trade war.
Yet, tariffs still hit hard. His recent 25% levy announcement on Mexico and Canada sent the peso tumbling 2% and knocked 1% off the Canadian dollar. The yuan wobbled too, dipping on his Fentanyl-linked tariff comments before rebounding when he spoke positively about talks with President Xi.
JPMorgan’s research confirms tariff tweets pack the most punch, though trading on them has proved largely unprofitable, with gains barely reaching 4% in ideal scenarios.
Crypto markets have mostly ignored Trump so far, but that could change. If tariffs extend to bitcoin mining or stablecoins, volatility may surge. His social media may no longer dictate markets, but his policies still hold the power to shake them.
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