President Trump Just Made Worrisome Stock Market History. What Usually Happens Next May Surprise Investors.
President Donald Trump has long viewed persistent trade deficits as harmful to the U.S. economy, an assertion that many economists dispute. Nevertheless, Trump made tough trade policy a focal point of his presidential campaign. "Tariffs are the greatest thing ever invented," he said at a Michigan town hall meeting last year.Yet Wall Street has still been stunned by the scope and severity of the tariffs President Trump has imposed since returning to the White House in January. The average tax on U.S. imports is currently 28%, the highest level in more than 100 years, and that number could increase once the 90-day pause on "reciprocal" tariffs expires.The radical change in trade policy caused the stock market to tank. The S&P 500 (SNPINDEX: ^GSPC) declined 12% over a period of five trading days in early April. While the benchmark index has recovered slightly, it remains 11% below the record high it hit in February.Continue reading
President Donald Trump has long viewed persistent trade deficits as harmful to the U.S. economy, an assertion that many economists dispute. Nevertheless, Trump made tough trade policy a focal point of his presidential campaign. "Tariffs are the greatest thing ever invented," he said at a Michigan town hall meeting last year.
Yet Wall Street has still been stunned by the scope and severity of the tariffs President Trump has imposed since returning to the White House in January. The average tax on U.S. imports is currently 28%, the highest level in more than 100 years, and that number could increase once the 90-day pause on "reciprocal" tariffs expires.
The radical change in trade policy caused the stock market to tank. The S&P 500 (SNPINDEX: ^GSPC) declined 12% over a period of five trading days in early April. While the benchmark index has recovered slightly, it remains 11% below the record high it hit in February.