Donald Trump says stock market stronger than ever before because of tariffs: ‘US is wealthy & powerful again’

US President Donald Trump has defended the tariffs that he has been imposing on other countries, including India.

“The stock market is stronger than ever before because of tariffs!” Trump said in a post on his social media platform, Truth Social.

“The United States is wealthy, powerful, and nationally secure again, all because of tariffs! The most important case ever is in the United States Supreme Court. God bless America!!!” he said.

How Trump tariffs are affecting US economy

As per the Tax Foundation, Trump's imposed tariffs are likely to raise $2.4 trillion in revenues for the US over the next 10 years on a conventional basis, while also reducing the US' GDP by 0.8% (considering no foreign retaliation).

As per PwC, the tariffs introduced by the Trump administration under the International Emergency Economic Powers Act (IEEPA) could result in $108 billion in duties collected by the end of October.

However, the US Supreme Court is reviewing a suit that has questioned the legal basis of such tariffs. The outcome of the case could have a retroactive impact on these tariffs.

Here's what the International Monetary Fund (IMF) has said on Trump tariffs:

How global markets are reacting to Trump's tariffs

Before the third-quarter earnings season commenced, global players had warned that there would be more than $35 billion in additional tariff-related costs after the US increased their duties to the highest since the 1930s.

However, on Thursday, one of the busiest days for earnings results so far this season, results suggested that companies have managed to find ways to pass on the higher costs to consumers or to cut them, thus helping to drive stock market rallies.

For example, Volvo Cars of Sweden has managed to smash expectations, after its shares jumped as much as 40% after its third-quarter earnings release.

This was mainly due to the cost-cutting measures introduced by CEO Hakan Samuelsson.

“What we're now seeing is really, wow, okay, this is delivering faster than we thought and faster than we planned,” Samuelsson told Reuters.

Even Unilever, the British consumer goods company, saw quarterly sales growth that topped expectations.

Adidas has also raised its full-year operating profit guidance.

However, the situation is not the same for others. French tyre manufacturer Michelin, which is also famous for its restaurant ratings, has lowered its 2025 outlook.

CEO Florent Menegaux, citing the challenging US economic picture, told Reuters, "The real economy, the goods economy, isn't working at all," adding, “We can see this because trucks aren't running, the confidence level among transport companies is plummeting.”