American stock exchanges may collapse at the same speed as their rise under Trump’s rule

With Donald Trump’s return to the White House in 2025, concerns in financial markets are increasing regarding the potential repercussions of his economic policies, especially with regard to customs duties and international trade. While some expect their plans to enhance economic growth, others believe that the American stock exchanges may collapse at the same speed as their rise due to the escalation of commercial tensions and their impact on major companies and consumers, according to the global “Yahoo Finance” website.

Customs duties threaten market stability

President Trump has announced the imposition of new customs duties by 25% on imports coming from Canada and Mexico, as well as 10% fees on goods imported from China. These measures caused a wave of panic in the financial markets, where the S&P 500 index fell by 1.7%, and the Dow Jones Industrial Index lost more than 550 points, while the Nasdaq index fell by more than 2%.
Also read: “Morgan Stanley”: America is the most affected by Trump customs definitions

These fees did not affect the American stocks, but their repercussions extended to the global markets, where European and Asian stock exchanges witnessed significant declines, amid fears of a new trade war escalating that may affect global investments and trade movement.

Wide economic repercussions

Analysts warn that new trade policies may lead to high production costs for American companies, which may be reflected in their profits and negatively reflects the performance of stocks. Also, the high customs duties may lead to an increase in inflation, which may cause the federal reserve to retract interest reduction plans, which may increase the pressure on the financial markets.
Also read: How can China respond to Trump if he imposes his tight customs definitions?

Moreover, the escalation of trade war may affect consumer demand, especially if prices continue to rise due to increased import costs. Technology and cars companies are expected to be the most affected, due to their great dependence on imported ingredients and raw materials.

International reactions and rising tensions

The affected countries did not delay in responding to these measures, as Canada announced the imposition of counter -fees of 25% on American products, while Mexico and China have vowed similar measures, which enhances fears of the outbreak of a comprehensive trade confrontation that may affect the global economy.

This comes at a time when financial markets face uncertainty, as investors are awaiting developments in the political and economic scene in the United States, amid questions about the extent of the new administration’s ability to achieve stability without causing severe damage to the global economy.

How do investors deal with these fluctuations?

In light of these unstable situations, investors are advised to be careful, diversify their investment portfolios, and focus on sectors that have greater resistance to fluctuations, such as healthcare and basic services sectors. It is also preferable to maintain sufficient cash liquidity to take advantage of any investment opportunities that may appear during possible correction periods.

In conclusion, while Trump promotes his policies as a way to restore power to the American economy, the associated risks may create a new wave of instability in the financial markets. The most important question remains: Will the markets be able to withstand the upcoming commercial storm, or will the collapse be the same as the speed that you witnessed in the past years?