Economist Nouriel Roubini criticizes Donald Trump's pattern of issuing tariff threats followed by quick retreats, describing it as a "threat-retreat" cycle. He explains that markets overreact to these signals, experiencing sharp declines when tariffs are announced, then rebounding after reassurances are given. Roubini highlights a recent example where a China tariff warning caused a market selloff before markets recovered quickly, illustrating the volatility and overreaction in response to political trade tensions.