'Bullied into submission': Trump’s 'naked economic incompetence' is now GOP’s greatest liability

 
During the United States' 2024 presidential election, Democrats were frustrated whenever GOP nominee Donald Trump polled well on the economy.

 
Democratic nominee and then-Vice President Kamala Harris attacked Trump's economic positions vigorously, warning that the steep tariffs he was proposing were a recipe for painful inflation and soaring prices. Regardless, Trump maintained his advantage on the economy on Election Day, narrowly defeating Harris by roughly 1 percent in the national popular vote.

 
Trump is now almost three months into his second presidency. And journalist Matt Johnson, in an article published by the conservative website The Bulwark on April 17, stresses that the economy has become Trump's greatest political vulnerability — and a problem for Republicans in general.

 
"After Donald Trump was elected," Johnson explains, "the stock market surged as investors anticipated a more business-friendly regulatory and tax environment. Some dubbed it the 'Trump effect.' But that optimism has soured after the wild volatility and economic downturn over the past couple of months, largely owing to Trump's erratic tariff policies. Economic growth projections have been slashed, the likelihood of recession has spiked, and the S&P 500 crashed by nearly 20 percent…. in less than two months."

 
Johnson continues, "The index is still down about 12 percent from its recent high in February. All this chaos has led to a different Trump effect…. As one institution after another caves to Trump, one important check remains: There's nothing Trump can do to bend global financial markets to his will."

 
Trump, Johnson argues, is being "bullied into submission…. by the bond market."

 
"Markets provide immediate feedback on Trump’s actions," Johnson observes. "They can't be flattered or pressured. They can't be swayed by alternative facts…. Despite the economic pain Americans will be forced to endure, Trump's immediate implementation of his protectionist agenda is a political gift."

 
Johnson continues, "He made a major tactical error: His naked economic incompetence has given Democrats a powerful case against him, and it's unlikely that he will be able to reverse course in time to avoid punishment in the midterms. He has shaken global confidence in the U.S. economy, which will take many years to repair — and which will remain evident in the demand for American equities and debt."