Trump Goes On The Defense About 'Massive Effect' Of Tariffs, Economic Growth, Putin Relationship: DJT Shares Fall

Former President Donald Trump shared his thoughts on tariffs, a potential breakup of Alphabet Inc GOOG GOOGL, taxes, the Federal Reserve and more during an interview Tuesday at the Economic Club of Chicago, covering several topics that could be key to winning the 2024 presidential election.

What Happened: The interview, which was conducted by Bloomberg Editor-in-Chief John Micklethwait was tense at times over topics like tariffs.

During the interview and shortly after, shares of Trump Media & Technology Group DJT fell and were halted, potentially due to the former president's comments.

Shares of Trump Media & Technology fell as low as $25.11 on Tuesday and finished the day down 9.6% at $27.06.

The stock rose Monday after the media company announced the launch of the Truth+ streaming platform.

Trump on Economy: Trump said his policies will bring back growth to the United States.

"We're all about growth," Trump said, as reported by Bloomberg. "We're going to bring companies back to our country."

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Trump on Tariffs: During the interview, Trump argued against the notion that increasing tariffs on foreign goods could negatively impact American jobs, saying higher tariffs could protect "the companies that we have here and the new companies that will move in."

"It's going to have a massive effect, positive effect," Trump said. "The higher the tariff, the more likely it is that the company will come into the United States, and build a factory in the United States so it doesn't have to pay the tariff."

The comments come as Trump has proposed a 60% tariff on imports from China and 10% on the rest of the world.

Trump also said Tuesday that he would block the sale of United States Steel Corporation X to Nippon Steel Corp if he's able.

"I think it sets a horrible tone. There are certain companies you have to have."

Trump said steel is critical to the country’s national security.

Trump on Federal Reserve: During the interview, Trump was asked Tuesday about removing Federal Reserve Chairman Jerome Powell.

The former president said if he is reelected, he should be able to give input on if interest rates should change, regardless of who is in charge of the Federal Reserve.

"I think that if you're a very good president with good sense, you should be able to at least talk to him."

Trump did not confirm whether he would remove Powell but joked about how easy the job is to be Federal Reserve chairman.

"I think it's the greatest job in government. You show up to the office once a month and you say, ‘let's flip a coin' and everybody talks about you like you're a God."

Trump on Breaking Up Google: Another economic topic that came up during the interview was the breakup of big technology companies like Alphabet Inc, the parent company of Google.

Trump wouldn't say if he would push to have the company broken up if he returns to the presidency, but he would like to see changes made.

"What you can do without breaking it up is make sure that it's more fair. They do treat me very badly."

Trump’s comments come as the Department of Justice considers breaking up the company over alleged monopolistic practices in the online search sector.

Trump on Vladimir Putin: Trump brushed off a question on whether he had remained in contact with Russian President Vladimir Putin since leaving the White House, which comes as a book by Bob Woodward alleges the two have talked since then.

"Well, I don't comment on that, but I will tell you that if I did, it's a smart thing," Trump said. "If I'm friendly with people, if I have a relationship with people, that's a good thing, not a bad thing."

Trump said his strong relationship with Putin was a positive while he was in office.

Trump on 2024 Election: Asked about the 2024 election being a close head-to-head battle with Kamala Harris, Trump said he remains confident in a victory in November.

"Based on the votes that are coming in so far, we're doing very well," Trump said.

The former president said Pennsylvania and Michigan are two of the top states he's watching for the election as swing states continue to play a pivotal role in deciding the winner.

DJT Price Action: Trump Media & Technology shares are up 31% over the last five days. The stock has been increasingly volatile during the 2024 election cycle.

Since the company completed its merger with Digital World Acquisition Corporation in March, the stock has often traded with heavy volume or been halted due to key election events like the presidential debates, election polls, and President Joe Biden dropping out of the race. The stock has also been volatile due to legal proceedings involving the former president.

Sometimes considered a meme stock, Trump Media & Technology Group has often traded more as a play on backing Trump and his potential election win and less so on fundamentals and valuation of the social media company and assets.

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