Donald Trump has continued to announce major tariffs with a goal to protect US companies and products. Tariff concerns are rising as people expect prices will increase for everyone involved. This worry is embodied in the recent stock market performance, as it has dropped significantly after Trump announced more tariffs.
Stock Market Falls due to Tariff Concerns
Trump announced on Tuesday, March 11th that he plans on doubling the tariffs on steel and aluminum imports from Canada. Tariffs on steel and aluminum will now reach 50 percent, with more tariffs on the way. On his social media platform Truth Social, Trump said”I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD. This will go into effect TOMORROW MORNING, March 12th.”
These large tariffs have led to investors worrying about their returns. The Dow Jones Industrial Average dropped nearly 1 percent on Tuesday. The day prior was the worst day for Nasdaq in two years. That same day the S&P 500 fell 2.7%, the Dow decreased 2.1%, and the Nasdaq decreased 4%.
Trump, however, seems confident that tariffs are the best way forward. He said that “we’re bringing wealth back to America, that’s a big thing.” Trump mentioned that this may take some time, but wants to focus on other aspects of his role as President. He said “Look, what I have to do is build a strong country. You can’t really watch the stock market.”
Trump certainly is aware that the short term economic future may not be phenomenal and that many have concerns over tariffs. He believes that the US has been financially helping other countries too much. He said “Canada pays very little for National Security, relying on the United States for military protection.” That National Security certainly isn’t cheap. Trump also said “We are subsidizing Canada to the tune of more than 200 Billion Dollars a year. WHY??? This cannot continue. The only thing that makes sense is for Canada to become our cherished Fifty First State.”
Featured Image Credit: Tima Miroshnichenko; Pexels: Thank You!
