Truth Social capitalizes on Trump’s tariff policies with new program

45%. On April 11, the Trump administration announced that consumer electronics would be exempt from tariffs on Chinese goods, at least temporarily.

The impact of each of Trump’s tariff announcements was immediately felt in the stock market. The announcement on April 2 led to a significant crash, with stocks losing $6.6 trillion in value over the first 48 hours. However, the freeze on most tariffs above 10% on April 9 resulted in a market rally, with the Dow Jones Industrial Average surging nearly 3,000 points in a single day. Companies like Apple, which import a large portion of their consumer electronics from China, initially struggled until the exemption for consumer electronics was announced on April 11.

Looking ahead, Trump’s ability to manipulate stock prices through the creation or elimination of tariffs is evident. This led to Trump Media and Technology Group (TMTG), the parent company of Truth Social, unveiling a new venture involving actively managed investment accounts. These “Truth Social-branded Separately Managed Accounts” are marketed as a way to invest in companies that stand to benefit from Trump’s political agenda, such as those focusing on “Made in America.”

The collaboration between TMTG and Index Technologies Group aims to align these investment accounts with American values and priorities. Themes like “Faith & Values,” “Liberty & Security,” and “Energy Independence” will cater to investors looking to connect their portfolios with patriotic and ethical convictions. Trump’s majority ownership in TMTG means that he stands to profit both from the investment of cash reserves as well as the fees generated by these accounts.

The introduction of these investment solutions from Truth Social may be a strategic move to offset the financial struggles the social media platform has faced. With significant losses reported in 2024, the company’s future is uncertain. Despite this, TMTG has a market cap exceeding $4 billion, largely attributed to its association with Trump. However, signs of potential instability in the company’s stock value, such as a hedge fund taking a “short” position on TMTG, indicate that the allegiance of Trump supporters may not be enough to sustain its market value.

Moreover, recent partnerships, such as with Crypto.com to offer cryptocurrency funds, suggest that TMTG is exploring different avenues for revenue generation amid its challenges in the social media space. As Trump’s tariff policies continue to shape the economic landscape, it remains to be seen how Truth Social’s foray into investment solutions will play out in the long term. The overlap between Trump’s political decision-making and financial interests introduces complex conflicts of interest that raise concerns about transparency and accountability.