Putting the Market Sell-Off into Perspective

At the start of last week, the S&P 500 rallied three days in a row, with investors believing that the tariffs announced on Wednesday would be targeted. But with increasing expectations comes the potential for disappointment. On April 2, the much-anticipated tariff announcements arrived—and investors did not like the news. President Trump announced 10 percent tariffs across the board on all imports from all other countries, excluding Canada and Mexico. Had that been the extent of it, the market’s expectations would most likely have been met. But it also included tariffs on countries identified as bad actors when it comes to trade, which included 34 percent tariffs on China, 24 percent on Japan, and 20 percent on the EU.

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