The performance of the stock market is a bit of a mystery during Donald Trump’s second term. Since he took office, the Dow Jones is up a bit more than 4 percent. While the president touts this increase as an achievement and evidence of the strength of the American economy, it’s actually not that impressive. For example, at the same point in his administration, the Dow Jones had already gained more than 10 percent under Joe Biden.

Still, it is a bit baffling that stocks are rising at all because the economy is quite clearly in some trouble. Job growth is essentially non-existent (and may actually be negative already), inflation is back on the rise, and now the government is shut down.

More than anything, perhaps this shows that the stock market is a rich person’s game, and the wealthy in the US are doing just fine. Regular Americans, however, don’t benefit from this largesse.

The only thing that has been able to slow down the market has been Trump himself, more specifically his tariffs.

Therefore, it is hardly surprising that the Dow Jones plunged on Friday when the president announced that he wants to reignite his trade war with China.

“Some very strange things are happening in China! They are becoming very hostile, and sending letters to Countries throughout the World, that they want to impose Export Controls on each and every element of production having to do with Rare Earths, and virtually anything else they can think of, even if it’s not manufactured in China,” Trump wrote in a social media post on Friday morning.

While touting his “very good” relationship with China over the past six months, the president stated that he “always felt that they’ve been lying in wait, and now, as usual, I have been proven right!”

Although he said that he expected this development, Trump also added that Beijing’s action “came out of nowhere.”

“There is no way that China should be allowed to hold the World ‘captive,’ but that seems to have been their plan for quite some time, starting with the ‘Magnets’ and, other Elements that they have quietly amassed into somewhat of a Monopoly position, a rather sinister and hostile move, to say the least,” he added.

Of course, much of what he is accusing China of can also be said about the tariffs Trump has imposed on most countries.

Predictably, stocks took a dive as soon as the post was published. The Dow Jones was down nearly 2 percent, and that was before Trump announced, in a second post after the market had closed, which punitive action on Beijing he wants to take.

“Based on the fact that China has taken this unprecedented position, and speaking only for the USA, and not other Nations who were similarly threatened, starting November 1st, 2025 (or sooner, depending on any further actions or changes taken by China), the United States of America will impose a Tariff of 100% on China, over and above any Tariff that they are currently paying,” he wrote. “Also on November 1st, we will impose Export Controls on any and all critical software.”

Trump also indicated that he would pull out of a planned meeting with Chinese President Xi Jinping at the upcoming Asia-Pacific Economic Cooperation (APEC) forum.

How much damage will the actions of the world’s two largest economies do? It’s impossible to predict, but it won’t be good.

Of course, both announcements could just be posturing as the two economic superpowers are trying to get the better of each other in their high-stakes trade negotiations.

But it’s a dangerous game both of them are playing.