Breaking: Wall Street is Worried About a Trade War After Trump Announces Tariff Taxes
By: Lisa M. Hayes – Confluence Daily is your daily news source for women in the know.
The Dow dropped more than 500 points on Thursday after President Trump said his administration will impose tariffs on steel and aluminum imports. The Nasdaq and the S&P 500 declined about 1% apiece.
“This is the first shot across the bow over a trade war,” said Art Hogan, chief market strategist at B. Riley FBR. “And nobody wins a trade war.”
Trump said his administration would impose a 25% tariff on steel imports and a 10% tariff on aluminum. It was not immediately clear whether Trump would exempt some countries from the tariffs, as his national security advisers have urged him to do to avoid hurting U.S. allies.
Concerns about trade come at an already shaky time on Wall Street. The S&P 500 and Dow fell about 4% in February, their worst month in two years. Fears about inflation and soaring bond yields caused a surge in volatility, including two 1,000-point plunges for the Dow.
This announcement comes from a President who ran his campaign on the premise that he had the business experience to lead the country and particularly the economy like a business. It’s a common line of rhetoric amongst candidates. However, in practical terms, our economy doesn’t, and can’t run like a business because it isn’t one. Under this administration, while the markets have seen growth, they have also suffered the largest single-day losses in history.
While even the business community is scratching their heads and sounding warning bells over this announcement, Trump’s unilateral decision will have impacts from Wall Street to Main Streets, not just in the U.S., but around the globe.
Things to remember:
The market is a fickle and moody mistress, but generally, she always rights herself. Growth is natural.
You can’t judge the market by any single day, no matter how bad or even good it might seem.
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