Company Blames Disappointing Earnings That Sent the Stock Market Plummetting on Donald Trump's Tariffs, and Trump Just Responded

Construction equipment manufacturer Caterpillar blamed its disappointing stock market performance, which kept its adjusted earnings guidance for 2018 steady, falling short of the increase analysts had projected, on President Donald Trump's tariffs. The company's analysts say "higher material costs due to steel and tariffs" drove up manufacturing costs, which caused its stock to dive 8 percent despite an 18 percent increase in company revenue.

If you were to ask the president, however, you'd hear a different story. Earlier today, the president responded to criticism of the tariffs his administration imposed on steel and aluminum imports, insisting that tariffs would continue so long as other countries don't "give us a fair Trade Deal."

Caterpillar's announcement comes after electric vehicle manufacturer Polaris Industries said its suppliers "must help offset the cost of President Donald Trump’s trade wars if they want to keep doing business," according to Bloomberg.

Polaris is “making good progress with domestic suppliers saying, ‘Hey, we’re not taking that price increase.’ Or more recently, telling our Chinese suppliers, ‘Hey, if you want to continue to be a supplier to us, you’re going to have to take some of these costs,’’’ said Chief Executive Officer Scott Wine, who noted that the president's trade wars caused Polaris's stock price to dip 31 percent.

The president remains steadfast in his belief that tariffs are necessary to address the signs of what he believes to be an era of waning American influence on international markets.

In March, shortly before confirming that the U.S. would impose tariffs on aluminum and steel, Trump attracted criticism for claiming that trade wars “are good, and easy to win.”

“When a country (USA) is losing many billions of dollars on trade with virtually every country it does business with, trade wars are good, and easy to win,” he wrote at the time. “Example, when we are down $100 billion with a certain country and they get cute, don’t trade anymore-we win big. It’s easy!”

The president appeared to ignore much of the controversy surrounding his announcement. Instead, he doubled down on his belief that “We must protect our country and our workers.”

Later, he seemed to offer justifications for his decision, writing: “When a country Taxes our products coming in at, say, 50%, and we Tax the same product coming into our country at ZERO, not fair or smart. We will soon be starting RECIPROCAL TAXES so that we will charge the same thing as they charge us. $800 Billion Trade Deficit-have no choice!”

According to two officials who at the time spoke to NBC News on condition of anonymity, Trump’s “decision to launch a potential trade war was born out of anger at other simmering issues and the result of a broken internal process that has failed to deliver him consensus views that represent the best advice of his team.”

In the words of one official, the president became “unglued.”