Anthony Scaramucci Says 'The Market Doesn't Like Trump Tariffs'—Compares Trump To Hitler Appeaser For Coddling Putin And Berating Allies

Former White House communications director Anthony Scaramucci was unfiltered in his latest comments on President Donald Trump's economic policies. In a tweet on Feb. 21, Scaramucci said, "The Market doesn't like Trump tariffs. Trump as Neville Chamberlain. Trump coddling Putin, berating our allies. The market doesn't like that."

The Market's Reaction

Scaramucci's criticism comes as Trump moves forward with aggressive trade policies in his second term, including a 25% tariff on imports from Canada and Mexico and a 10% tariff on Chinese goods. The Wall Street Journal Editorial Board has called this “one of the dumbest trade wars in history,” arguing that tariffs on allies make little sense, especially when China is the bigger economic rival.

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Trump has justified the tariffs by claiming they address trade imbalances and protect American industries, but critics say they will only disrupt key sectors like auto manufacturing and agriculture. The U.S. auto industry, which relies on an integrated supply chain across North America, could see higher costs and job losses as a result. The WSJ pointed out that in 2023 alone, the industry added over $809 billion to the U.S. economy and supported nearly 10 million jobs. Disrupting this trade flow could weaken American competitiveness.

Wall Street's Take

Goldman Sachs GS has warned that Trump's tariffs could hurt corporate earnings and stock prices. According to the firm's chief U.S. equity strategist, David Kostin, the S&P 500's earnings could drop by 1% to 2% for every 5% increase in tariffs. With tariffs already in place on key trading partners, the firm predicts a 2% to 3% decline in earnings and a potential 5% drop in the S&P 500 in the near term.

"If company managements decide to absorb the higher input costs, then profit margins would be squeezed," Kostin wrote. "If companies pass along the higher costs to end customers, then sales volumes may suffer. Firms may try to push back on their suppliers and ask them to absorb part of the cost of the tariff through lower prices."

Even more concerning is the uncertainty these tariffs create. According to Goldman, during Trump's first term, the stock market fell by a combined 5% on days when new tariffs were announced, and an additional 7% on days when other countries responded with retaliatory tariffs. Economists also warn that tariffs could drive inflation back up, forcing the Federal Reserve to keep interest rates higher for longer—another potential hit to stock prices.

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Comparing Trump to Neville Chamberlain

Scaramucci's reference to Neville Chamberlain, the British prime minister known for his policy of appeasement toward Adolf Hitler before World War II, signals his view that Trump is being too soft on Russia while alienating U.S. allies. The former Trump insider has been a vocal critic of the president in recent years, and his latest comments suggest he sees Trump's economic policies as a threat to both markets and international relations.

As the tariff debate continues, the market will ultimately determine whether Scaramucci's warning holds true.

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