Trump's Tariffs Create Turmoil in Stock Markets Amid Growing Domestic Opposition

Stock markets took a hit on Monday as former President Donald Trump announced new tariffs on U.S. trading partners, an action that comes despite a recent Supreme Court ruling against his previous tariff measures and increasing discontent among American voters. Investors were rattled by uncertainty regarding the future of global trade deals, leading to a significant drop in U.S. stock prices, including a 14-point plunge in the Dow Jones Industrial Average. The S&P 500 and Nasdaq 100 also reported declines of 0.9% and 1.1%, respectively, following losses in European markets. Trump’s move to push ahead with tariffs was confirmed over the weekend when he stated that he would impose temporary tariffs on imports from all nations, initially set at 10% before increasing to 15%, all under a rarely used section of the Trade Act of 1974. Following the Supreme Court’s ruling, which declared that Trump overstepped his authority in implementing tariffs last year, the President took to his Truth Social platform to warn of more severe tariffs for countries that reconsider their trade agreements in light of the court’s decision. He stated, "Any Country that wants to play games with the ridiculous supreme court decision, especially those that have Ripped Off the USA for years and even decades, will be met with a much higher Tariff and worse than that which they just recently agreed to. BUYER BEWARE." Despite Trump’s assertive stance, a growing domestic opposition to his trade policies is evident. A YouGov poll conducted immediately after the Supreme Court’s decision indicated that approximately 60% of Americans supported the ruling to invalidate Trump's extensive tariffs regime. Approval of the Supreme Court's decision spanned across political party lines: 88% of Democrats, 63% of independents, and even a notable 30% of Republicans expressed approval. The tariffs have contributed to rising prices, with a significant sentiment among Americans that Trump’s tariffs have led to increased costs for goods and services. According to YouGov surveys, Republicans were found to be four times more likely to report that the tariffs have raised prices rather than reduced them. This dissatisfaction was already apparent before the legal decision, as a Fox News poll reflected that 63% of registered voters disapproved of Trump's management of tariffs, while only 37% were in favor. Such polling results are likely to stir anxiety among Republicans as they approach the upcoming midterm elections in November, highlighting a potential shift in voter sentiment regarding Trump’s economic policies. Related Sources: • Source 1 • Source 2