In an unprecedented move, President Donald J Trump has announced the sweeping
new tariffs, the U.S stock market has significantly suffered. The S&P index graph shows
a falling knife graph on the chart, a nose dive by 4.8% wiping out $2 trillion from the
market, meanwhile Dow Jones Industrial Average fell by 6%. The announcement of tariff
includes a baseline of 10% levied on all imports and much higher rates for specific
countries, stating it as “discounted tariff rate”, with 54% tariff on Chinese goods and
26% on India and several other countries. The cascading effect of these tariffs can be
seen on the US capital market fall. IT industry stock like Apple, Meta declined by 9%
nearly, chipmaker Nvidia and Elon Musk’s electric car manufacturing company Tesla
slid by 7% and 5% respectively.
Perhaps nations worldwide are contemplating retaliatory measures. Market experts are
concerned over protectionist policies like these may escalate into a full-blown trade war
potentially leading stagflation i.e. stagnant economic growth and rising inflation,
threatening Geo-economics risks, presumptuously; drowning the economy into
recession.
Source:- EconomicTimes
