President Donald Trump has dismissed calls from business leaders, investors, and policymakers seeking greater clarity on his administration’s tariff policies.
“They always say that. ‘We want clarity,’” Trump said in a Fox News interview that aired Sunday.
“They have plenty of clarity,” he told Sunday Morning Futures host Maria Bartiromo, downplaying concerns from the business community.
Trump suggested that such appeals for guidance were merely rhetorical. “They just use that—like almost a sound bite.”
When pressed by Bartiromo on whether the business community would receive clear direction, Trump offered a telling response:
“I think so, but you know, the tariffs could go up as time goes by, and they may go up, and you know, I don’t know if it’s predictability.”
Bartiromo interjected: “That’s not clarity.”
Market Turbulence Amid Policy Shifts
Trump’s remarks came at the start of a week marked by economic uncertainty, with tariff-related concerns rattling financial markets. On Monday, the Dow Jones Industrial Average dropped 400 points, or 1%, at the opening bell. The S&P 500 fell 1.4%, while the Nasdaq Composite declined 2%. Both the S&P 500 and Nasdaq later hit their lowest levels since September 2024.
The declines followed a volatile week on Wall Street, as unpredictability surrounding Trump’s trade policies weighed on investor sentiment. The S&P 500 closed the previous week down 3.10%, its worst performance since September. The Dow fell 2.37%, while the Nasdaq shed 3.45%.
At the center of the turmoil were Trump’s 25% tariffs on imports from Canada and Mexico. Initially paused for a month, the tariffs were reinstated on Tuesday, scaled back on Wednesday, and then partially postponed again on Thursday.
Economic Concerns and Investor Uncertainty
While Trump and his administration have acknowledged that the tariffs could result in short-term economic strain, including higher consumer prices, they have insisted that any negative effects will be temporary.
However, investors remain uncertain about the administration’s shifting trade strategy.
“We still have no clarity on the economy moving forward with the Trump turmoil,” wrote Byron Anderson, head of fixed income at Laffer Tengler Investments.
“The longer we have chaos and turmoil from Trump, the higher the probability that we will eventually have data trend negative,” he added in a Friday note.
The White House did not respond to requests for comment on Trump’s latest remarks or the broader confusion surrounding his tariff agenda.
The Week Ahead: Economic Data and Federal Reserve Stance
The coming week will provide new economic data that could further shape market sentiment. On Monday, the New York Federal Reserve is set to release its survey of consumer expectations. Wednesday will bring the release of February’s Consumer Price Index, followed by producer price data on Thursday. The week will conclude with the University of Michigan’s consumer sentiment report on Friday.
As the Trump administration embarks on a monthlong reassessment of U.S. trade relationships, uncertainty could have a compounding effect.
“Markets fear uncertainty more than they fear bad news,” wrote Mark Malek, chief investment officer at Siebert Financial. “Twenty-five percent tariffs are easier to price in than ‘maybe 10%, maybe more, maybe less.’”
Beyond businesses and investors, the Federal Reserve is also monitoring developments closely.
Fed Chairman Jerome Powell indicated on Friday that the central bank is “well positioned to wait for greater clarity” as the administration implements “significant policy changes in four distinct areas: trade, immigration, fiscal policy, and regulation.”
Speaking at the U.S. Monetary Policy Forum, Powell noted that it is the “net effect of these policy changes that will matter for the economy and for the path of monetary policy.”
For now, he said, “uncertainty around the changes and their likely effects remains high.”
The Federal Reserve, like many others, is “focused on separating the signal from the noise as the outlook evolves,” Powell added.
