1. 36% of small businesses report losses due to tariffs. 2. 77% attribute concerns to uncertainty from changing policies. 3. 81% faced challenges in securing affordable financing. 4. 49% halted expansions due to high interest rates. 5. 75% remain optimistic about their growth trajectory.
The negative impact on small businesses can affect larger enterprises, leading to decreased consumer confidence. Historically, trade wars have resulted in market downturns, as seen during the China-U.S. trade tensions.
The article highlights systemic issues that could lead to economic slowdown, directly affecting the stock market. Given S&P 500's reliance on consumer health and small business stability, these factors are vital.
Immediate pressures from tariffs and rising operational costs could destabilize stocks rapidly. Short-term uncertainty often leads to swift market reactions, similar to previous tariff disputes affecting major indices.