Peter Navarro Defends Trump's Tariff Policy Amid Market Crash: 'You Can't Lose Money Unless You Sell

U.S. President Donald Trump's "reciprocal tariffs" on nearly all trade partners have sent shockwaves through global financial markets. U.S. stocks have plunged in response, with the S&P 500 dropped 9.08%, the Nasdaq 100 fell 10.02%, and the Dow Jones Industrial Average slid 7.86%. The crypto market has not been immune to turbulence. Bitcoin (BTC) fell sharply to $78,000, while Ethereum (ETH) dropped to approximately $1,500. This dramatic downturn has raised concerns among investors worldwide.

Trump's senior trade advisor, Peter Navarro, made an appearance on FOX News at 14:00 Eastern Time (18:00 UTC) on April 6, urging U.S. investors not to panic. Navarro stated, “You can't lose money unless you sell,” expressing strong optimism about the U.S. stock market's future. He added, “Right now the smart strategy is not to panic; just stay in because we are going to have the ‘biggest boom’ in the stock market we’ve ever seen under Trump's policy.”

Navarro went further, predicting that the Dow Jones Industrial Average would quickly find its bottom and reach 50,000 points by the end of Trump’s term. “I have credibility on this,” he asserted confidently.

President Trump also responded in the same confident way when he was asked about the stock market seeoff. "Sometimes you have to take medicine," which indicates that the market is paying a short-term pain for long-term gain in the future.

However, Navarro's "smart strategy" has faced widespread skepticism from investors and industry leaders. Elon Musk, head of the Department of Government Efficiency (DOGE) and a close associate of Trump, responded critically to Navarro’s remarks on X. Musk commented, “A PhD in Econ from Harvard is a bad thing, not a good thing. Results in the ego/brains>>1 problem.”

Navarro fired back during his FOX News interview, accusing Musk of protecting his own business interests. “Elon sells cars. He’s simply protecting his own interests,” Navarro said, pointing out that Tesla vehicles rely heavily on components sourced from Mexico, China, Japan, and Taiwan.

Meanwhile, Trump’s tariff policy is facing growing opposition from conservative circles. According to the Washington Post, a nonprofit organization backed by right-wing billionaire Charles Koch has filed a lawsuit against tariffs, and several Republican lawmakers are reportedly drafting legislation to overturn them.