Why does the stock market hate the tariffs and trade wars

The stock market threw a fueled trade key with the fear of Donald Trump Tariff policy and the acting audience Global Trade War.

Why Americans did why the stock investors of the trade policy did so skittish.

High level investors are annoyed by investment analysts, for a long time that a long-time trading war creates significant risks for corporate profits and the US economy.

But this is not a result in advance. Trump management can hit trade deals and exacerbate the overall blow, for example, specialists.

“But if this does not happen, the market can still be a long way under the bottom,” Thomas Mathews, Thomas Mathews, head of Asia-Pacific markets in Monday’s celebration.

Since March 12, 2020, the worst two days of the United States, the first days of the Covid-19 pandemology – and the fourth since 1950, according to Callie Cox, Ritholtz General Market Strategy in Wealth Management.

The shares have entered the territory of the Bear Market in a short way – this means that it fell to 20% during the trade of the casualties.

On Wednesday, US trading partners were on sale from Trump and announced a sweeper plan to put an initial tariff for 10%. As members of the European Union, as well as Chinese and traditional allies, many high proportions have set many high proportions.

Their coverage has protected many investors.

“It was more important than expected than most anticipated” in the stock market, Chris Harvey, head of the capital strategy in the stock market, wrote in an e-mail.

The fear is that tariffs will be the growth of companies in the open list and a wider economy. Wall Street has raised the bet For the United States decay.

Tariffs are taxes paid by US companies importing goods from abroad, and therefore raise costs for the United States business. Companies can eat this value to avoid increasing the price of consumers and not to gain income.

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However, economists expect that the enterprises expect the consumers at least additional costs. According to the Lale Budget Laboratory, the average household will lose $ 3,800 for this day so far due to the tariff policy.

Consumers can withdraw to spend and fall down to fall on sales. Companies may leave employees who further increase the consumption costs, which make up about 70% of the US economy.

The control works are complicated by the economists.

Chinese Put the 34% tariff Trump’s products after the announcement of “mutual” tariffs last week and companifus “Fight until the end”. Canadian Put 25% Tariffs In a number of US goods, while the EU block preparation their own 25% revenge dues.

(S & P was more than 2% of Tuesday morning Increased hopes For trading deals with China and South Korea.)

The tariffs of the revenge provide us more expensive goods, which are more expensive, export-reliable enterprises sold abroad – maybe withdraws and lower consumer expenditures.

“We are waiting for many – if not all, countries outside the United States, to accept their revenge tariffs,” Wells Fargo Investment Institute wrote on Friday.

Wells Fargo, “Significantly lowered” growth in 2025 due to an unexpected aggressive tariff increase in the increase in the U.S. economy. This year reduced its target for a total domestic product to 2.5%.

Still, the economy still does not show signs of dramatically weakening, Joe Seydl, JP Morgan’s personal bank in large markets in large markets. If tariff policy proves that it is not temporary, shock, it is likely that the “mild” will probably lead to the decline of the United States.

“Tariffs are highly likely to increase inflation temporarily, it is possible that effects can be more persistent,” Federal Reserve Jerome Powell gossip Friday.

Fed, interest rates cannot be cut as soon as possible.

Dynamic, unlikely to reduce growth prospects for expanding and expanding operations and expand their transactions, it is likely to have a higher level of debt costs.

The first Trump management lets the tariffs of imported $ 380 billion in 2018 and 2019, according to to the tax ground. Now, more than $ 2.5 trillion has imports or more than seven times more tariffs.

Another difference is the White House’s social position against tariffs and communication.

In the first period of Trump, the management had a standard of exchange variability that the management did not find intolerance. Now, there is less concern about the gyrations of shares – this is perhaps the most important factor in stock sales.

“Capital markets (especially equity) are not all that is not good for management, and it is not good, and the effect of a recession, loss and a negative wealth of wealth.”

“Management has been rejected from these signals, creates a negative opinion lamp,” Harvey wrote.

The framework, targets, potential duration and economic tolerance related to the white house tariffs, added that investors complicate market risk assessment.