Will the Stock Market Rebound After the Latest U.S. Tariff Shock?

On April 2, 2025, President Donald Trump unveiled a sweeping universal 10% tariff on all imports, with additional tariffs targeting specific countries. While some feared even harsher measures, the stock market still took a dive. Now, investors are left asking: Was this just a knee-jerk reaction, or is more trouble ahead? Will stocks bounce back next week, or is this the start of a prolonged slump? Why Did the Market Drop? Even though the tariffs were milder than expected, Wall Street still panicked. Here’s why: 1. Economic Uncertainty & Higher Costs Tariffs mean higher costs for businesses—especially in manufacturing, tech, and retail. Consumers could end up paying more, eating into spending power and corporate profits. 2. Market Psychology & Investor Sentiment Markets don’t just react to numbers—they react to direction. Any step toward protectionism fuels uncertainty. Many traders were expecting no new tariffs. Even a lower-than-feared number felt like a letdown. ...