Hoover Institution Senior Fellow Victor Davis Hanson said on Fox News Wednesday that the surge in U.S. stocks reflects confidence in President Donald Trumpâs tariff strategy, especially towards China.
U.S. stocks surged Wednesday as Trump announced a 90-day suspension of tariffs for most countries, while simultaneously escalating the tariffs imposed on China. During an appearance on âThe Ingraham Angle,â Hanson weighed in on the buoyant mood among investors, attributing it to a belief that Trumpâs approach, particularly towards China, remains a lucrative bet for the U.S. economy.
âHeâs wonderful. Heâs a very good explicator. But theyâre also looking at hard data, and they see that the annualized inflation rate in March went down. They looked at the jobs and surprised everybody by 100,000. They see that energy is getting more affordable,â Hanson told host Laura Ingraham.
Hanson talked about what he said shapes current market dynamics.
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âThey look at that $5 trillion or $4 trillion in foreign investment, that calculates anywhere from five to 10 million new jobs. So there was all this data that was positive. They looked at his first term. He kind of went after Dodd-Frank. The market went up 65%, and then somebody said âWait a minute. This is all a panic,ââ Hanson said.
Hanson said that Trumpâs clear focus on diminishing Chinese influence in global markets reassures investors.
âThis guy has always been good for US. And just take a deep breath. And I did think they did that when he announced that he was gonna focus on China,â Hanson added. âBut he can have 90 days, and they know that heâs not gonna back down in 90 days, and theyâre gonna make the necessary adjustments so they donât have a choice. And they want to be in this market, especially with less China and more of them.â
Chinaâs Ministry of Finance declared on Friday a new 34% tariff on all U.S. goods starting April 10. This action is a direct retaliation to the Trump administrationâs similar tariffs on all Chinese imports, which caused a significant downturn in U.S. stocks after Trump announced his âLiberation Dayâ tariffs.
(Featured Image Media Credit:Â Screenshot/Fox News)
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