Wall Street is finally waking up to Trump’s tariff policy
www.atlanticcouncil.org
Financial markets are beginning to react after the United States implemented tariffs on its three largest trading partners on Monday.

Mark down March 3, 2025. That was the day Wall Street finally realized that US President Donald Trump was serious about tariffs. On Monday, the S&P 500 fell nearly 2 percent as Trump confirmed what we at the Atlantic Council predicted in February—that the tariffs on Canada and Mexico were not mere threats, but actually likely to be implemented. The stock markets continued to fall on Tuesday as investors processed the news.

  • modeler@lemmy.world
    0·
    4 days ago

    Yeah, but let’s consider what happens:

    • Tariff applied
    • Prices go up
    • Supermarket trolleyfull becomes more expensive
    • People have less money to buy other things
    • Companies sell less
    • Company profits fall
    • Stock valuation drops
    • GDP falls

    That’s why the Dow Jones and S&P are lower - this shrinks company profits and US GDP.