Shocking Impacts of Trump’s 2025

5 Shocking Impacts of Trump’s 2025 Tariffs on Stocks.The market’s reaction to U.S. tariffs has been swift and unsettling. From everyday Americans to large corporations, concerns are rising over what Trump’s proposed trade measures could mean for the economy.

🔗 Related Reading on LiveBzbuz:

• Top Investment Platforms for Arabs Living in the US, UK, or Gulf
• Investment Tips for Arabs Abroad | 2025 Smart Guide

Many investors and analysts are worried about the economic fallout from President Trump’s threatened tariffs set to take effect on August 1.
On the surface, the mood should be grim — yet something surprising is unfolding. Despite the looming trade risks, U.S. stock prices are rising sharply, leaving many Americans puzzled as they review their 401(k) and retirement account statements.

Recently, both the tech-heavy Nasdaq and the S&P 500,

which includes the biggest firms in the United States, have reached a string of all-time highs.

Tariffs.What’s the reason, then

The following four points should be noted, including the reasons why some investors are still concerned about a negative conclusion.

Tariffs.The economy is the problem, idiot.

Although it has remained true since Bill Clinton’s 1992 presidential campaign,

it still perfectly captures the reason why investors are driving stocks to all-time highs.

Even with worries about how tariffs may affect the economy,

it has proven to be far more resilient than many had anticipated.

Tariffs.June Inflation: What the 2.7% Rise Actually Means.

Despite the rise in inflation ticked UP 2. 7% The predicted increase in consumer prices in June from the year before has not occurred.

The labor market has also remained steady.

Due to continuous recruiting by companies in general and fewer layoffs by businesses,

the unemployment rate is still historically low at 4. 1%.

stocks.Investors have taken note.

“Overall, the economy has been faring better than most feared in response to the threat of tariffs,” said Brad Peterson, n

ational portfolio adviser to Northern Trust, a financial services company based in Chicago.

However, most economists now anticipate growth in the U.S.

economy in the second half of this year will be slower compared to that of 2024,

while the probability of a recession in the next 12 months is 33 percent,

according to The Wall Street Journal‘s latest quarterly survey.

Tariffs.Why are companies still making money

It is also true that investors on Wall Street are fond of this:

Corporate earnings have so far proven stronger than many in the markets feared initially. While they are not phenomenal results, investors seem relieved.

Consider companies like Alphabet (Google’s parent company) and Netflix,

AT&T and Hasbro, that surpassed Wall Street expectations,

and they are sounding a bit more positive about their outlook.

Delta Air Lines, for instance, said travelers feel more confident despite the uncertainty around tariffs.

The profits show the strange separation that is currently happening in the U.S. If Americans are worried about the future they remain in a spending frame of mind that is helping contribute to corporate profits.

“We may feel bad. “Amanda Agati, chief investment officer for PNC Asset Management Group in Philadelphia, said, “We are likely to have concerns, but if we looked at the actual data, we would demonstrate behavior that is not something we are concerned about for the most part.”

However, certain sectors are faring more poorly than others. General Motors recently noted a $1.1 billion impact to its profit due to increased tariffs — though it is worth mentioning that the company is still profitable.

stocks.Tariffs will hurt the economy, and small businesses will suffer much more than big ones.

“”For small business all over the country,” advised Kevin Gordon,

a senior investment strategist with the Schwab Center for Financial Research in New York,

“they are affected much more by higher tariffs because they don’t have the leeway or cash balances of larger companies to deal with it.”

stocks.How US Consumers Handled Trump’s Trade Wars.

When Trump first announced his round of tariffs (which impacted nearly every country on Earth) in early April, stocks began a tailspin as investors learned the sheer amount of import taxes were much more than most people anticipated.

However, stocks made a quick recovery once Trump then announced a 90-day pause — which was extended now a second time to Friday. TheThe baseline 10% tariff on nearly all goods produced in the United States was maintained by the president. imports, in addition to other tariffs for some items like steel and aluminum.

This postponement of extra sweeping tariffs has caused the market to believe in the “TACO trade.” TACO stands for “Trump Always Chickens Out,” a phrase created and circulated by a Financial Times op-ed columnist.

Tariffs.Why investors are choosing calm over panic.

It’s supposedly a word that Trump hates, but it reflects a belief among investors that the president’s actions will, in the end, not be as serious as he indicated at first.

As an example, last week Trump announced a trade deal with Japan in which he said the U.S. would have a 15% tariff on imports from the second-largest economy in Asia, a rate that blew the minds of investors just one year ago.

And in a world that Trump has thrown upside down, investors reacted with relief because it’s not the 25% he originally proposed. As a matter of fact, the new tariff helped propel the S&P 500 to another record high.

Simply put, Trump has reset market expectations by proposing extremely high tariffs and then in a few trade agreements has instituted lower tariffs. He has fundamentally changed how investors will view tariffs moving forward.

Analysts are optimistic that the global economy will be better able to endure the tariffs at these lower levels.

“We have a new normal, where 10% is the new zero, and so 15% and 20% do not seem so bad if everybody else has it,” said Trinh Nguyen, senior economist for emerging Asia at Natixis, posting on X referencing an interview she did with Bloomberg.

Signs you might be anticipating more problems.

Despite the stock market hitting an all-time high, there is still a real concern from some market experts, that investors may have incorrectly interpreted the tariff situation.

While Trump has made a few deals with some countries, the largest ones are left to be negotiated in regards to the United States’ largest trading partners – Mexico, Canada, China and the European Union.

Then there’s the economic impact. While investors are relieved that the import duties so far have not been as burdensome as initially thought, the average tariff rate is still at the highest level since the 1930s. Costs of imports will be higher, and the prices consumers ultimately pay will increase. This will almost certainly have a cascading effect on economic growth, and inflation, even if the full effects have not yet played out in the U.S.

But it’s not only tariffs. Other uncertainties persist, with Trump’s aggressive criticism of Federal Reserve Chair Jerome Powell taking center stage.

Although Trump has suggested he will not try to fire Powell for the time being – which would instigate a large legal battle and upset the financial markets – Trump is, nevertheless, still attacking both the Fed and Powell.

And stocks are pricey, which puts them at great risk of big declines if something unexpected happens.

Sandy Villere, a partner and portfolio manager at Villere & Co. in New Orleans, expects that markets might trade down 10% to 12% from here in the second half of the year.

“Everybody’s assuming everything is going to be perfect,” he said. “That’s typically where you see the pullback. When things are priced to perfection, we get nervous.”

That’s the ultimate worry. Stock markets are priced- to-perfection — and the further they run, the greater the chance that it could all end in tears.

Tariffs.Stocks.Tariffs and Stocks 2025.

July 27, 2025.5:00 AM ET

Written by livebzbuz | ArabWealth