Trump and His ‘Little Disturbance’ From Tariffs - WSJ


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Market Reaction to Trump's Tariffs

President Trump's recent announcement of the largest tariff increase in a century triggered a sharp negative reaction in the stock market. The S&P 500 fell by 4.8%, and the Nasdaq dropped by 6%, marking the worst day since the COVID-19 economic shutdown in March 2020.

Impact on Specific Sectors

Retailers and manufacturers were hit particularly hard. Apple experienced a 9.3% decline, Nike fell 14.4%, and Gap plummeted by 20.3%.

Broader Economic Indicators

The negative market sentiment extended beyond specific companies. Oil prices, the U.S. dollar, and the 10-year Treasury yield all fell, suggesting lowered expectations for future economic growth.

White House Response

The White House maintains that the long-term benefits of the tariffs will outweigh the current economic pain.

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President Trump said there would be “a little disturbance” from his tariffs, but how does he define little? The stock market Thursday suffered its worst day since the government shut down the economy in March 2020. Not to worry, the White House says tariffs will eventually be worth the pain. Feeling better?The S&P 500 fell 4.8% and the Nasdaq 6% in reaction to Mr. Trump’s Wednesday tariff announcement of the largest tariff increase in a century. The biggest market casualties were retailers and manufacturers such as Apple (-9.3%), Nike (-14.4%) and Gap (-20.3%). Oil prices, the U.S. dollar and the 10-year Treasury yield also fell, likely signaling slower growth expectations.

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