As the US stock market plunged on Thursday following White House clarification on reciprocal tariffs, US President Donald Trump’s top trade advisor, Peter Navarro, argued it was a typical market correction after a significant increase.

“In terms of market analysis, I mean that to me is pure spin,” Navarro told CNN. “You had the highest rise in stock market history yesterday. Of course there’s gonna be a little pullback. The question is: What spin are you gonna put on it? It’s just normal retracement after a big day. It’s no big deal,” he added.

Stock market plunge on Thursday

On Thursday, stocks fell after a historic surge on Wednesday after the White House clarified its plan for a whopping 145% tariff on China.

The S&P 500 sold slipped 3.46% and ended at 5,268.05, while the Nasdaq Composite fell 4.31% to settle at 16,387.31, reported CNBC. The Dow Jones Industrial Average slipped 1,014.79 points, or 2.5% and closed at 39,593.66. In terms of companies, tech-heavy stocks such as Apple and Tesla fell 4.2% and 7.3%, respectively, while Nvidia slipped nearly 6%, and Meta dropped almost 7%.

US stock market on Wednesday

The stock market dip on Thursday comes after a surge on Wednesday, where the S&P 500 rose more than 9% after Donald Trump announced a 90-day pause on reciprocal tariffs.

‘We’re clawing back dangerous trade deficit,’ says Navarro

Expressing his optimism over the reciprocal tariff, Navarro further expressed, “If you simply look where we are now, we’ve got a 10% global tariff in place, and we’re taking in about, I, probably $4 billion a day, where we’re losing 4 billion and taking in about 2 or 3 billion now. So that’s all to the good, we’re clawing back some of that dangerous trade deficit.”

He also claimed that 90 countries will approach the United States for negotiations.

“And we’ve said in 90 day, negotiation in motion where at least 90 countries, now want to come in and see us. And what they’re going to do is literally offer us collectively, hundreds and hundreds of billions of dollars of opportunity to bring manufacturing here, to sell energy there and do all sorts of things to balance our trade. We are in a beautiful place,” Lavvaro added.

Donald Trump’s reciprocal tariffs

On April 2, Donald Trump announced a comprehensive tariff policy on trading partners, imposing at least a 10% duty on nearly all goods entering the United States. The move was aimed to correct trade imbalances and boost American industries.