The imposition of tariffs by former US President Donald Trump did not have a significant impact on global stock markets. In fact, investors appeared largely unfazed despite the trade tensions, which were sparked in 2018 and continued until his departure from office.
According to recent data, major market indices such as the S&P 500 and the Dow Jones, remained relatively stable throughout Trump’s presidency. This suggests that investors viewed the tariffs as a minor disruption rather than a major threat to global economic stability.
The reason behind this optimism is likely due to several factors. Firstly, many analysts believed that the US trade deficits were overstated and that other countries, including China, would eventually comply with Washington’s demands. Secondly, investors may have seen the tariffs as a necessary measure to protect domestic industries such as agriculture and manufacturing.
Furthermore, some experts argue that the global economy is increasingly interconnected, making it more resilient to protectionist policies. Additionally, the US has a large and diverse consumer market, which provides a significant cushion against trade tensions.
While some investors may have taken precautions in response to the tariffs, they did not seem to have a major impact on investor sentiment or stock prices. As such, the global economy appears to have weathered the trade tensions without major damage.
Source: https://www.ft.com/content/9c37558f-0ab6-4a2a-924a-e629ea871df5