Will the Stock Market Crash as Tariffs Take Effect in 2025? Wall Street Has a Clear Answer for Investors. (Hint: It May Surprise You.)
The S&P 500 (SNPINDEX: ^GSPC) is widely regarded as the best gauge for the overall U.S. stock market. The index briefly dropped into correction territory earlier this month, and it remains at 8% below the record high reached in February. Economic uncertainty created by tariffs has been the driving force behind the drawdown, and the situation may worsen in April.
The White House has already imposed tariffs on goods from China, Canada, and Mexico, as well as steel and aluminum imports. But the Trump administration plans to implement reciprocal tariffs -- meaning imports will be taxed at the same rate as exports -- on April 2. With that policy, the Trump administration hopes to "correct long-standing imbalances in international trade."
Importantly, numerous experts argue tariffs will increase inflation and slow economic growth, which could certainly cause a deterioration in corporate earnings across the S&P 500. Does that mean the stock market will crash in 2025? Wall Street has a surprising answer.
Source Fool.com
