Trump Tariff Promises Sink Stocks

Following a streak of promises to implement heavy tariffs on other countries, the stock market witnessed yet another day of selling pressure.

In a rally in Allentown, Pennsylvania, as well as in a press conference on Tuesday, the president-elect repeated his campaign promises by making many shocking plans regarding his tariff policies. The president-elect pledged similar tariff levels to his campaign; a 10% tariff on all global imports, with an individual 60% tariff on Chinese imports and a 25% tariff on Canadian and Mexican products.

However, the president-elect also pledged to declare a national emergency in order to justify the implementation of a universal tariff rate. This was what sparked media attention today.

As a result, investors went to sell almost right away, all across the board. The Nasdaq, which is expected the bare the greatest burden of tariffs, already fell 0.3% as of noon 1/8. Most large tickers in the stock market also fell, continuing this week's losing streak.

Trump's tariff plan could have grave implications. High tariffs, especially on goods in China, could skyrocket prices and thus inflation, making consumers lift the heaviest weight of the economic policy.

Nevertheless, tariffs could be critical in domestic job development as well as the stability of small businesses. Especially by essentially rooting out competition with cheaper Chinese products, more expensive American products could have a better time in the next Trump term.