Bank of America: “American households have allocated a record 29% of their financial assets to stocks.”

Although tariffs have caused economic instability and disrupted business investment, their impact on the stock market remains unclear.

During the US-China trade war from 2018 to 2020, which lasted 782 days, tariffs led to higher costs, lower profit margins, reduced business investment, many companies faced supply chain disruptions and cut hiring.

Despite causing economic difficulties, the stock market only fluctuated but did not downtrend.

The S&P 500 index fell 4.38% in 2018 but surged 31.49% in 2019 after the announcement of the Phase I trade agreement between the US and China.

Similarly, Chinese stocks fell in 2018 but rebounded in 2019.

In the short term, tariffs create volatility, but the market gradually adapts and recovers once a resolution is achieved.