How Trump's Tariffs Are Impacting Stocks, Economy

President Donald Trump's new slate of tariffs all across the board are already making their mark in both the NY Stock Exchange and the economy as a whole.

President Trump and Sec. of Commerce Lutnick.

The tariffs that the president has implemented include heavy 25% rates for Canada and Mexico, two of America's largest trading partners, and smaller yet still high "reciprocal tariffs" on imports from some of America's trading allies like Japan, the EU, and Taiwan.

These tariffs have already had an immediate impact on the direction of the stock market. Due to new reports showing lower consumer rates of confidence with the economy, and incoming CPI, jobs, and inflation reports already predicted to show negative results this week, investors have sold off. Stocks, like Tesla and Nvidia, some of whom operate global businesses as subsidiaries or mergers/acquisitions, suffered the worst as investors believe that the tariffs will contribute to less profitable business for them. In recent days, major index funds like the Nasdaq and the S&P 500 sank by more than 1% as investors continue to respond to the Trump administration's sweeping economic policy.

In addition, these tariffs have hit the economy in a number of ways. American manufacturers of automobiles, semiconductors, appliances, and more face significantly higher prices for foreign aluminum, copper, and steel that they have been purchasing before to then churn out manufactured goods for the market. Even worse, consumers have been hit hard by rising prices for foreign goods directly.

Overall, while the economy and stock market are reacting poorly right now, this is merely the beginning. The president, secretary of commerce, secretary of the treasury, and others have made it clear that they wish to pursue continued tariff hikes for the purpose of raising revenues in the government.