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President Donald Trump’s escalating trade war has sent shockwaves through global
markets, erasing trillions in wealth in just days. While everyday investors feel the
pinch, financial experts say the wealthiest Americans are taking the hardest hit—
with some losing millions in paper wealth overnight.
On Friday, the S&P 500 plummeted 6%, the Dow Jones Industrial Average dropped
5.5%, and the Nasdaq composite index nosedived 5.8%—marking the worst week
for U.S. stocks since March 2020 at the height of the pandemic panic.
“A lot of my high-net-worth clients are definitely uneasy,” said Karla Dennis, a
California-based tax strategist and financial consultant. “They’re watching the
market take a big hit and wondering, ‘Should I be doing something? Should I pull
out? What’s next?’”
One of Dennis’ clients, heavily invested in tech and overseas markets, saw over $2
million vanish from their portfolio in a single week.
“That doesn’t mean they lost the money—it’s not gone until they sell—but it’s a big
emotional hit,” Dennis explained. “When you open your account and see red
numbers, it’s hard to stay calm.”
1. The Ultra-Rich Are Losing Big—And They’re Not Happy
Unlike the average investor, America’s wealthiest keep most of their net worth in
stocks. When markets crash, their losses are exponential.
Elon Musk’s Tesla shares dropped 9% in one week, wiping out $12 billion from his
net worth.
Jeff Bezos’ Amazon stake lost $8 billion in market value.
Warren Buffett’s Berkshire Hathaway saw a $7 billion decline in just five days.
“Back in the 19th and early 20th centuries, the super-rich had their wealth tied to
physical assets—railroads, factories, land,” notes David Lazarus, KTLA consumer
reporter. “Today, their fortunes are almost exclusively in stocks. When the market
tanks, they get poorer—fast.”
And they’re not staying quiet about it.
Lazarus predicts: “The one-percenters are likely reaching out to the White House.
The rich won’t miss any meals, but you can bet some are calling to say, ‘This is
unacceptable.’”
2. Trump’s Response: “This Is a Great Time to Get Rich”
While Wall Street panicked, Trump remained defiant.
From his Mar-a-Lago estate in Florida, he posted on social media:
“THIS IS A GREAT TIME TO GET RICH”
—encouraging investors to “buy the dip” before heading to Trump International
Golf Club West Palm Beach.
But financial experts aren’t convinced.
“This isn’t a typical market correction—it’s a direct result of trade policy
uncertainty,” warns Mark Zandi, chief economist at Moody’s Analytics. “If this
continues, we could see a full-blown recession.”
3. China’s Retaliation: A 34% Tariff Hammer
The market freefall intensified after China struck back with aggressive
countermeasures:
34% tariffs on key U.S. imports
Restricted exports of rare earth minerals (critical for tech manufacturing)
Blacklisting U.S. firms from doing business in China
Beijing called Trump’s policies “economic bullying” and a “violation of
international trade rules.”
“This isn’t just a trade war—it’s economic warfare,” says Larry Kudlow, former White
House economic advisor. “And right now, the markets are the battleground.”
4. Europe’s Warning: “We Will Defend Our Interests”
The European Union, another key player in Trump’s trade offensive, is preparing to
retaliate.
Maroš Šefčovič, the EU’s trade commissioner, met with U.S. officials in a “frank”
two-hour discussion and later tweeted:
“The EU is committed to meaningful negotiations but also prepared to defend our
interests.”
Translation: More tariffs could be coming.
5. The Domino Effect: Oil, Copper, and Global Markets Tank
The trade war isn’t just hurting stocks—commodities are collapsing too:
Crude oil prices hit their lowest level since 2021
Copper (a key economic indicator) dropped 5% on recession fears
Gold surged as investors fled to safe havens
“When copper falls, it’s a red flag,” says Nouriel Roubini, the economist who
predicted the 2008 crash. “Markets are pricing in a global slowdown.”
6. Who’s Getting Hurt the Most?
A. Tech Billionaires
Apple (-7%), Nvidia (-10%), and Meta (-8%) led the sell-off.
Elon Musk lost more in a week than most Americans earn in a lifetime.
B. Private Equity & Hedge Funds
Blackstone and KKR stocks dropped 6%.
Hedge funds are scrambling to limit losses.
C. Retirement Accounts (Including the Rich)
Even the wealthy keep some assets in 401(k)s and IRAs.
A 6% market drop means a
600,000 lossona 600,000 lossona 10 million portfolio.
7. Will This Trigger a Recession?The 64,000question∗∗
(64,000question∗∗(or rather,the∗∗10 trillion question) is:
Will Trump’s trade war cause a global recession?
If so, experts warn:
Stocks could fall another 20%.
Corporate earnings will shrink.
Layoffs could follow.
“We’re in uncharted territory,” says Jamie Dimon, CEO of JPMorgan Chase. “If this
escalates, everyone—rich or poor—will feel it.”
8. What’s Next?
Possible Scenarios:
✅ Deal Reached (Bull Case) – Stocks rebound sharply.
⚠️ Prolonged Stalemate (Bear Case) – More volatility, slower growth.
❌ Full-Blown Trade War (Worst Case) – Global recession.
The Rich Are Nervous—And They Should Be
Trump’s trade war isn’t just a political showdown—it’s a wealth destruction
machine. While the president insists “this will pay off,” the ultra-rich aren’t waiting
to find out.
High-net-worth individuals are:
Moving cash into gold and bonds
Diversifying overseas
Lobbying Washington behind the scenes
One thing’s clear: If the market keeps falling, Trump’s billionaire backers may not
stay loyal for long.
