r/investing • u/Mountain-Taro-123 • 3d 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/Top-Currency 3d ago

Of course this hurts americans the most! They're the only ones with the tarrifs.

Not entirely. There are massive tariffs announced on many developing countries like Vietnam and Pakistan that have a significant economic dependence on the US buying their goods. This hurts those countries even worse, will lead to massive layoffs, for example in textile factories, which affects people that already have very minimal income and savings to start with.

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u/Franks2000inchTV 3d ago

Very true.