r/investing • u/Mountain-Taro-123 • 4d ago

SP500 sinks 4% after Trump's liberation day tariffs, China vows to retaliate on Trump's 54% tariffs, stoking investor fears of a global trade war and recession

It's been noted that the US retaliatory tariffs are not based on other country's tariffs, but rather the import/export trade deficit that the US has with said countries

SP500 is down 4% with consumer tech (Apple), apparel and clothing (Nike and Lululemon), and retail (Dollar General and Walmart) that source many products and parts from China down / hit the hardest

China and other countries are vowing to retaliate with their own tariffs against the US sparking fears of a global trade war and recession.

Noting the last time the US enacted sweeping tariffs through the Smoot-Harwley Tariff Act (which had lower average tariff amounts than those announced yesterday), it lead to a global trade war, reducing imports/exports, failed to bring back manufacturing jobs to the US, and caused the Great Depression. Will history repeat itself?

https://www.ft.com/content/f820e191-348c-4298-b15f-49600be843ce

https://www.china-briefing.com/news/trump-raises-tariffs-on-china-to-54-overview-and-trade-implications/

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u/Alectrosaurus59 3d ago

I'm going to keep dollar cost averaging into VOO every paycheck as it keeps falling. If we go into a recession I'll still keep buying.

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u/bigdickfang 3d ago

A reasonable plan, just make sure you are on sturdy enough legs that you can keep living and putting that money away, instead of having to take a bunch out to make ends meet.

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u/Narrow_Book_2446 3d ago

Better to file bankruptcy then take it out really. Retirement accounts are safe in bankruptcy

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u/Alectrosaurus59 3d ago

No worries there. I didn't start investing until I was extremely secure. Retirement is my only goal with my investments so I'm looking way into the future. Thanks for the advice though.