As of March 10, 2025, the situation indeed looks tense: after Trump imposed a 25% tariff on imports from Canada and Mexico and raised tariffs on Chinese goods from 10% to 20%, the markets reacted with a sharp decline. The S&P 500 index, for example, lost all of its post-election gains, dropping 6.4% from its record high. Tesla shares, which initially soared due to the euphoria surrounding Musk's ties with Trump, plummeted 45% from their late 2024 peak. Even Bitcoin, despite Trump's promises about crypto reserves, has not stood firm and is falling.
The reason is simple: investors hoped that Trump would use tariffs as a negotiation tool rather than engage in a full-scale trade war. But reality turned out to be different — Canada responded with 25% tariffs on American goods, China is preparing countermeasures, and supply chains are cracking at the seams. This creates uncertainty, which markets hate. Add to this concerns of a recession in the US, and the picture becomes even gloomier.
On the other hand, some sectors, such as defense in Europe, are actually growing as countries prepare to offset trade losses. Moreover, Trump himself may reconsider the tariffs if pressure from businesses becomes stronger. For now — yes, the stock market is indeed "crashing," but this could be a temporary shock. Do you think this is just panic or the beginning of a serious crisis?
#InvestorPanic #TrumpTariffs #MarketCrash