You may have heard about the recent buzz surrounding tariffs. On April 2, also known as “Liberation Day,” President Donald Trump unveiled a significant tariff plan imposing a 10% universal tariff, with certain countries facing even higher tariffs. The news on tariffs in recent weeks has rattled the global economy, leading to substantial stock market losses. CNN reported that by April 6, the S&P 500 had declined by 15% since Inauguration Day, with a majority of that drop occurring post-Trump’s announcement.
Moving forward to April 9, Trump temporarily halted reciprocal tariffs for 90 days, excluding China. The stock market reacted positively to this pause. Despite this, there are concerns about a potential recession this year, which could impact your finances. Amid this economic turmoil, the stock market has experienced volatility, with major tech companies also facing significant losses.
One standout company affected by the tariff news is Apple (AAPL), which has witnessed a massive $300 billion sell-off. Following Trump’s tariff announcement, Apple saw a sharp decline in its stock value, with Yahoo Finance reporting its worst day since March 2020.
Apple’s global production facilities in countries heavily impacted by the tariffs, particularly China, have contributed to its market cap loss. If high tariffs persist in China, consumers might encounter higher prices for Apple products.
There is uncertainty about how tariffs will affect the tech industry in the near future, given its heavy reliance on Asian supply chains. While electronics like smartphones and laptops have been excluded from reciprocal tariffs for now, this exemption is temporary.
In light of the current economic climate, it’s crucial to assess your risk tolerance and exercise caution when making investment decisions. GOBankingRates aims to provide unbiased coverage of the economy and presents balanced reports on politically focused finance stories.
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