Trump delivers on new tariffs and draws retaliation with economic toll expected to be heavy

The escalation of trade tensions is likely to hurt the U.S. economy, leading to a decrease in consumer spending and business investments. This will generally create a negative sentiment in the markets, particularly for sectors reliant on imports and exports. Companies with exposure to these tariffs may see higher costs and reduced profitability, which will likely weigh on their stock prices.

With the potential for retaliation and further economic sanctions, companies involved in agricultural commodities may be adversely affected, as shown by China’s plans to impose tariffs on U.S. farm goods amidst trade tensions. This sector is particularly vulnerable to policy changes related to international trade agreements.