1. Trump imposes 34% tariffs on China, adding to 20% tariffs. 2. Chinese government rejects TikTok deal due to U.S. tariffs. 3. China announces retaliatory 34% tariffs on U.S. goods. 4. TikTok's U.S. operations may remain under negotiation for 75 more days. 5. Tariffs deemed essential for U.S. national security by Trump.
Tariffs typically lead to increased costs for companies and potential trade wars. Historically, tariffs have negatively impacted markets, as seen during past U.S.-China trade tensions.
Ongoing tariff disputes could broadly affect U.S. corporations and consumer prices, potentially squeezing profit margins and influencing S&P 500 performance significantly.
Immediate reactions to tariffs can affect market volatility and stock prices. Uncertainties around trade negotiations often lead to short-term declines in major indices, as seen in early 2019.