Tariffs seem like simple tools, but they often come with unexpected repercussions. Just ask the president, whose fortune dropped a half billion dollars in a few days.
Donald Trump fired the first shots in a global trade war last week, inflicting damage on all sorts of people—including himself. On April 2, the day Trump rolled out his plan for sweeping tariffs, Forbes pegged his net worth at $4.7 billion. Less than a week later, it’s down to an estimated $4.2 billion, as the value of his public stock and private holdings fall in tandem with the broader market.
Trump’s biggest loss comes from his most valuable asset, the Trump Media and Technology Group, which declined 8% over the last three trading days, hitting its lowest price since October. His stake, worth $2.2 billion Wednesday, now sits at $2 billion. The roughly $170 million hit represents only the beginning of his problems.
Trump’s commercial real estate holdings have fallen an estimated $90 million, assuming they’ve experienced similar haircuts as publicly traded commercial property companies. Shares of Vornado Realty Trust—the firm that partners with Trump in two of his most valuable buildings, 1290 Avenue of the Americas in New York and 555 California Street in San Francisco—dropped 14% from the time of Trump’s announcement to the end of the day Monday. The stock price of another big New York City real estate firm, SL Green, fell 15%. Trump’s portfolio, including the Vornado properties, Trump Tower and 40 Wall Street, is now worth an estimated $570 million, down from $660 million last week.
Golf properties are losing value, too. Many of the balls, clubs and shirts in pro shops come from overseas. The real threat to Trump’s portfolio, however, is the possibility of belt tightening. Club members might cut back on weddings, lavish dining or even memberships. “If you hit a recession, your wife looks over at you and says ‘What the [heck] are we doing with this expensive club membership?’” explains one industry insider.
Loading...
There are no publicly traded companies quite like Trump’s collection of golf clubs, but the closest comparables point to trouble. Shares of highly priced leisure businesses, such as Vail Resorts and Soho House, are down more than 15% since Wednesday. Topgolf Callaway Brands, which manufactures clubs and runs golf venues, is down 15%, as well. A similar decline at Trump’s golf courses would shave another $70 million off his net worth.
Hospitality assets aren’t positioned any better. Trump’s biggest is Trump National Doral, a 643-room resort in Miami, where Saudi-connected LIV Golf just held an event, with Trump showing up shortly after announcing his tariff plans. White House spokesperson Taylor Rogers says the president remains focused on the country, not his business. “President Trump implemented tariffs on countries that have been ripping us off for years to ensure Americans are better off for generations to come,” she said in a statement. “The president’s assets are in a trust managed by his children while he is working overtime to lead the country to economic prosperity.” In addition to Doral, Trump continues to own hundreds of hotel-condo units in towers in Chicago and Las Vegas. If the value of Trump’s holdings fell by, say, 16%, he would have lost another $65 million. His much-smaller licensing-and-management business might have shed another $15 million on top of that.
Residential real estate also declined dramatically, with shares of four publicly traded apartment holders down an average of 13%. Trump owns dozens of units inside buildings he developed years ago. Trim that portfolio, and his net worth falls another $20 million or so. His most protected assets might be his many trophies, like the penthouse atop Trump Tower and Mar-a-Lago. Dana Koch, a luxury agent in Palm Beach, says those sorts of assets operate in a different atmosphere than publicly traded stocks. “This is even more finite and more scarce,” he says. Nudge the trophies down by, say, 5%, or half the decline of the broader market, and Trump is out another $32 million.
Cash typically provides respite in times like these. According to Trump’s latest financial disclosure report, he holds a portfolio of diversified bonds and a smattering of equity positions, including a $5 to $25 million stake in private-credit firm Blue Owl Capital, down 22% since Wednesday. After filing that disclosure in August, Trump received two massive windfalls via cryptocurrency ventures. First came World Liberty Financial, a project that promised a “financial revolution” and funneled nearly $400 million to the president and his family. Then came sales of the $TRUMP coin, which probably supplied at least another $175 million before taxes.
The issue for the president is that he may have stored some of those proceeds in cryptocurrencies, notoriously fickle assets. First son Eric Trump publicly touted Ether in February, telling his Twitter followers it was “a great time to add $ETH.” The currency is down 45% since then, including an 18% drop in the wake of Donald Trump’s tariff announcement. If the president’s estimated post-tax windfall of $350 million fell by even half as much as Ether, he would be out another $32 million.
Add all it up, and Trump’s losses from privately held assets appear to outweigh those from his publicly traded stock. The greatest threat to Trump is not direct tariffs on products he imports, given that his businesses don’t sell much in the way of hard goods. It’s the loss of investor confidence around the world. People rely on whims, not logic, when deciding whether to buy or ditch luxury real estate, pricy club memberships and high-flying meme stocks. The more uncertainty Trump injects into the global economy, the farther his net worth will tumble.
Loading...