The Global Shockwaves of U.S. Tariffs: Understanding Their Impact on Stock Markets
Introduction In the modern world of finance and trade, borders are more symbolic than functional. Goods, services, and capital move across countries at lightning speed, making global markets deeply intertwined. Amid this intricate web, the United States stands as a dominant player whose policies often set the tone for global economic activity. Among the most potent tools in the U.S. policy arsenal are tariffs —import taxes aimed at correcting trade imbalances, protecting local industries, or serving strategic political interests. But tariffs do more than raise prices on imported goods—they send tremors across global financial markets. In this post, we explore the intricate relationship between U.S. tariffs and the global stock market, highlighting how a policy move in Washington can trigger ripples from Wall Street to Shanghai. What Are Tariffs and Why Are They Used? Tariffs are essentially taxes imposed by a country on imported goods. For the U.S., tariffs are typica...