How Trump’s Tariff Boast Could Sway U.S. Industrials and Consumer Stocks

President Trump has posted a new announcement on Truth Social, the social media platform. He wrote:

“Tariffs are creating GREAT WEALTH, and unprecedented National Security for the USA. Trade deficit has been cut by 60%, totally unheard of. 4.3% GDP, and going way up. No inflation!!! We are respected as a Country again.”

How Will Trump’s Statement Affect the Stock Market?

This latest post has the potential to affect the stock market. That’s because Trump’s post framing tariffs as drivers of “great wealth” and national security could temporarily boost sentiment toward industrial-focused ETFs like VIS, XLI, and IYJ, as investors may expect stronger government support, reshoring, and defense-related spending to benefit U.S. manufacturers. However, tariffs also raise input costs and invite retaliation, which can compress margins and disrupt global supply chains, posing downside risk to both industrials and consumer discretionary ETFs such as VCR and XLY that rely on efficient trade and stable consumer prices. Claims of lower trade deficits, high GDP growth, and “no inflation” may encourage risk-on behavior in the short term, but if inflation and tariffs ultimately pressure consumer spending, discretionary sectors and their ETFs could underperform over the medium term.

Here are some of the stocks that might be affected:
Vanguard Industrials ETF ((VIS)),
Industrial Select Sector SPDR Fund ((XLI)),
Vanguard Consumer Discretionary ETF ((VCR)),
Consumer Discretionary Select Sector SPDR Fund ((XLY)),
iShares U.S. Industrials ETF ((IYJ)).