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President Donald Trump is blaming former President Joe Biden for the worst stock market performance in a new administration’s first 100 days since Richard Nixon — even as economists and investors tie recent declines to Trump’s own sweeping tariff policies.
On Wednesday, the Commerce Department reported that the U.S. economy contracted by 0.3% in the first quarter of 2025, the first decline since 2022. Stocks fell sharply after the news, with inflation remaining elevated and investor confidence shaken by Trump’s abrupt tariff regime announced earlier this month.
“This is Biden’s Stock Market, not Trump’s,” Trump posted on Truth Social, urging Americans to “BE PATIENT!!!” as he predicted an impending economic boom once what he calls the “Biden Overhang” is lifted.
Tariffs and “Liberation Day” Announcement Rattle Investors
The stock plunge followed Trump’s April 2 “Liberation Day” speech, in which he revealed far-reaching tariffs on imports, including individualized rates for countries. Though Trump paused the tariffs for 90 days, markets remained volatile, signaling skepticism about his ability to secure favorable bilateral trade deals.
Despite the reaction, Trump continues to downplay the connection between his policy and the market’s response.
“You can’t really watch the stock market,” he told Fox News in March. “China has a 100-year perspective. We have a quarter.”
Contradicting Past Praise of “The Trump Effect”
While Trump now disclaims responsibility for the early 2025 economic data, the narrative contradicts his past boasts. Following his 2024 election victory, Trump proudly labeled market gains as part of “the Trump Effect.”
“Since the election, the stock market has surged… small-business optimism has soared,” he declared at a pre-inauguration rally in D.C.
That tone has shifted. During a Cabinet meeting this week, Trump said critics should “give us a pass on the first month,” adding that his team is still adjusting.
Polls: Voters Hold Trump Responsible
Despite Trump’s messaging, public opinion isn’t aligning with his deflection:
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60% of voters in an NPR/PBS News/Marist Poll say Trump is responsible for current economic conditions.
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54% in a CNBC poll see Trump’s policies as having a negative impact now or soon.
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A New York Times/Siena poll shows voters equally blame Trump and Biden for the country’s economic problems — a troubling sign for the new administration.
Biden Allies Push Back
Andrew Bates, a former Biden White House aide, responded sharply to Trump’s economic blame game.
“Donald Trump is the only president to have sent a strengthening economy into a nosedive in 100 days,” Bates said. “And the only president to have bankrupted a casino.”
As economic uncertainty builds and Trump continues to emphasize tariffs as his central policy tool, pressure is mounting for him to deliver on promises of an American manufacturing resurgence — while public patience wears thin.
