Trump to carry out tariff threats if nations don't negotiate in 'good faith,' Bessent says
1. Trump to impose tariffs on non-compliant trading partners. 2. This could elevate market uncertainty affecting the S&P 500.
FAQ
Why Bearish?
Tariffs could lead to trade wars, historically leading to market declines. Similar instances in past years saw S&P declines due to tariff announcements.
How important is it?
Trade policies greatly impact economic conditions, likely altering S&P earnings outlook.
Why Short Term?
Immediate market reactions often occur with tariff announcements; long-term effects depend on resolutions. Historically, tariffs have led to short-term volatility.