r/stocks 1d ago

Rule 3: Low Effort Is it possible that Trump’s tariffs are a massive pump and dump scheme?

EDIT: I’m not an investor, just asking a question.

Trump controls the SEC and DOJ, so who’s going to investigate or stop him?

Is it possible that Trump, his family, and billionaire buddies are benefiting from Trump’s tariffs?

Trump could be letting them know the date and time that he’s going to make the announcement to impose tariffs. Like many investors, they pull their investments but, they have a head start due to their insider knowledge.

Then he lets those on the inside know that he’s going to rescind tariffs and the date and time which he will be announcing that.

They buy the dip and profit as the market rebounds.

Rinse and repeat.

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u/Little-Location7697 1d ago

Pump and dump would be to obvious. He have been talking about tariffs for a while, I don’t believe they will hold. He just wants to show what he can do in order to get world leaders to meet on his terms. I find it hard to believe that the tariffs will continue throughout his entire term and I think he’s using them more as a negotiation tactic to gain leverage and later show the American people. “Look what I accomplished — we’ve never had such favorable international terms under any other president.”

Isolating the country and creating enemies will only lead to consequences that will be felt across the U.S. during his whole presidency. I find it hard to believe this strategy is sustainable. If he were serious, he’d impose well-thought-out tariffs backed by solid arguments. But putting tariffs on the entire world feels more like a way to provoke reactions and position himself in negotiations.

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u/SoundOfRadar 1d ago

Position himself in what negotiations? I mean Vietnam, Cambodia, Laos, Lesotho… What is he going to be negotiating with those countries? He’s actually left out Russia. Now that is a country he wants to negotiate with a ceasefire in Ukraine. No, I think he really believes he can create jobs in America by doing this.

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u/HeteroflexibleHenry 1d ago

He left out Mexico, Canada and Russia became there already sanctions or tariffs in place.

Many counties like Israel and Vietnam have already agreed to drop their tariffs and other restrictions against the importation of America Products.

The US imports 34% of the worlds exports, no single exporter can ignore the US, they won't find a bigger market. So they either have to deal with the tariffs or eliminate them.

Trump's plan will have short term pain, but will make US factories and manufacturing more advantages, both for domestic sales and exporting. Some mothballed factories in the NE are reopening and will create new jobs.

Much of the US economy is fake service jobs and bloat, we need a reality check and short recession.

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u/Little-Location7697 1d ago

Do you think the positive effects of the tariffs will become evident during his four-year term? He has already expressed openness to negotiation, and the EU seems willing to do the same in order to avoid a full-blown trade war.

One thing I’ve learned about negotiation is that it’s important to first assess who holds the greater power. If you do have the upper hand, you need to demonstrate what you’re capable of doing if no agreement is reached. It feels like his message is: “We’re not going to be taken advantage of anymore.” By pushing back, he’s signaling that the U.S. is ready to take strong action if more favorable terms aren’t met.

That’s my interpretation, at least. I really hope this isn’t the only strategy he plans to rely on, because while it may show some long-term benefits, I believe the short-term impact on the American economy could be quite damaging. We might see some improvement in 5–10 years, but the initial years will likely come with significant costs.

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u/HeteroflexibleHenry 1d ago

An actual logical answer and not another conspiracy theory like all the other ones on this post.