China’s Ploys Won't Wreck U.S. Investor Confidence, or Trump's McKinley-Style Strategies

Trade turmoil didn’t shake markets — this week, it shattered them.

President Trump jolted the trade order, lighting up a global chess board, slapping tariffs on imports from more than 180 countries and forcing world leaders off the sidelines.

What followed wasn’t just immediate market turbulence — it was a full-blown financial quake that rewrote the rules of international trade in real time.

On Monday, the Dow Jones Industrial Average (Dow) whipsawed more than 2,500 points before closing down 349 in its most chaotic intraday swing ever.

Tuesday teased hope with a 1,400-point rally . . . that evaporated by the closing bell.

Then came Wednesday. Trump’s shock 90-day tariff pause sent the Dow rocketing nearly 3,000 points — the biggest one-day gain in history — while the S&P 500 blasted up 9.5%.

This wasn’t stability. It was a lifeline. "It even takes guts for our country to go through it," Trump said, "That’s why I said, 'Be cool.'"

Behind the spectacle seemed a deliberate strategy right out of "It’s The Art of the Deal," invoking Trump’s 1987 playbook — a copy of which Israeli Prime Minister Benjamin Netanyahu left the White House clutching after pledging to eliminate all Israeli tariffs on U.S. goods.

Make no mistake friends, this is just the opening act.

Buckle up — markets are set to thrash as global power players react, recalibrate, and retaliate in a high-stakes economic slugfest.

So, did Trump achieve anything? Absolutely.

• More than 75 countries, long unwilling to discuss protective tariffs, now rushing for talks with Washington — opening doors for U.S. exporters to markets that remained closed for years.
• Even with the pause, Trump locked in a new 10% baseline tariff and imposed tougher "reciprocal" rates on dozens of nations. That’s billions in U.S. revenue income.
• 25% tariff has been issued on foreign-made cars, impacts roughly half of vehicles sold in America.
• China’ online retailers, Temu and Shein, are no longer tariff exempt, by closing a trade loophole on de minimus goods.
• No relief for Beijing. Trump raised tariffs on Chinese imports repeatedly.

"At some point," Trump posted, "China will realize that the days of ripping off the U.S.A., and other countries, is no longer sustainable or acceptable.”

Nothing Subtle About China's Ambitions: All are Bad News

This wasn’t about soybeans or semiconductors — it was about sentiment.

China’s real target was American investor confidence.

• The battlefield shifted from factory floors to trading screens.
• From economics to perception.

Trump didn’t retreat.

Unlike his predecessors, he understood this was never just about goods — it was about power. His "America First" doctrine defied the bipartisan fantasy that globalization was an unstoppable force of progress.

That fantasy hollowed out the American middle-class, exported strategic industries and handed influence to foreign capitals. Trump said no more.

This isn’t chaos — it’s clarity.

And the reason elite globalists are panicking is not because this approach is reckless . . . it’s because — for the first time in decades — it's once again effective.

History agrees.

President William McKinley understood tariffs weren’t just economic — they were existential. His policies — the Dingley Act of 1897 and the Tariff Act of 1890 — fortified industry, empowered labor and made America stronger.

Trump is reviving that legacy in a new, more dangerous world.

Beijing’s latest move confirms it. They zeroed in on the sectors that underpin U.S. strategic leverage: chips, energy tech and agriculture.

These aren’t coincidences—they’re pressure points. Its economic warfare dressed as trade retaliation. Trump saw it. He called their bluff.

This moment proves what many still denies: globalization isn’t neutral. It’s a weapon. And when America fights back, the system doesn’t collapse --it reveals itself.

We’re not losing the game anymore. We’re finally playing to win.

What Should Business Leaders Do in Times of Extreme Volatility

Markets run on confidence—and confidence demands leadership.

This isn’t the first time U.S. markets were shocked. From 1987’s Black Monday, to the dot-com crash, the 2008 financial crisis, 911 and COVID-19 market plunge . . . one pattern holds: decisive, fact-based action determines whether disruption becomes recovery or prolonged instability.

Remember, capital markets punish silence, adrift and weak leadership.

Business Leaders Can Take Steps to Survive Extreme Volatility

So, what should business leaders do?

First: Context matters. U.S. markets weathered far worse. Percentage losses were dwarfed by the 23% plunge on one day — October 19, 1987. I was on the New York Stock Exchange Trading Floor that day as a member of its executive and management committees and NYSE chief spokesman . . . I saw fear in real time. That day didn’t end capital markets — it reinforced them.

Second: Demonstrate alignment through action. Boards and executives build credibility when they back shareholder value with personal investment. Under SEC rules, insider stock purchases aren’t just optics — they’re a direct show of conviction.

A clear benchmark: directors should invest at least 51% of their annual cash compensation into the companies they oversee. That personal stake strengthens oversight and aligns decisions with investors . . . who they represent.

Third: Take decisive steps to secure strategic independence. Boards reduce companies’ dependence on foreign goods and invest in U.S. sourcing. That shift isn’t just patriotic — it’s prudent, ensuring resilience in a world where supply chains are now weapons, not guarantees.

Fourth: Reaffirm what can be reaffirmed. Uncertainty is real. If forward guidance can be held or adjusted, communicate it to investors. Capital markets don’t need perfection; they require clarity and conviction.

Fifth: Prioritize long-term value. In uncertainty, great leaders stay focused. Protecting R&D, maintaining innovation and honoring dividends where viable . . . aren’t risks, they’re commitments to future growth. Companies that hold to their strategic roadmap don’t just endure—they outperform.

Never sell America short!

This is a global reset — not a pause. It rewards clarity, action, and resilience.

I’ve lived through six major market shocks. Everyone who stayed invested in America equities didn’t just recover — they led the rebound.

They will again.

Richard Torrenzano is chief executive of The Torrenzano Group which helps organization takes control of how they are perceived™. For nearly a decade, he was a member of the New York Stock Exchange (NYSE) management (policy) and Executive (operations) committees. His first book Digital Assassination: Protecting Your Reputation, Brand, or Business Against Online Attacks was a best seller. His new book Command the Conversation: Next Level Communications Techniques, will be released in May.