Stocks Slide as Trump’s Tariff Moves Shake Business

Trump’s Trade War Ripples Across Industries, U.S. Stocks Take Another Blow

The waves from former President Donald Trump’s escalating trade war are now slamming into multiple corners of the business world triggering deep concerns for investors, corporate leaders, and global economies alike.

On Wednesday, the U.S. stock market fell sharply once again, as fears over new tariffs and global economic uncertainty continued to pile pressure on investors. At the heart of the market’s anxiety are tech giants, airlines, and even policymakers, all now feeling the sting of unpredictable trade decisions.

Tech Stocks Tumble as Tariff Curbs Hit Bottom Lines

The tech sector bore the brunt of the sell-off. Companies like Nvidia, deeply reliant on international supply chains, have issued serious warnings about the impact of ongoing U.S. restrictions on semiconductor exports especially to China.

Nvidia revealed that it expects a $5.5 billion blow to its revenue as a direct result of AI chip export curbs to China. The stock plunged 7% during Wednesday’s session, dragging down the Nasdaq Composite Index by 3%.

Chipmaker Advanced Micro Devices (AMD) also flagged an $800 million loss, reinforcing how exposed U.S. tech companies are to Chinese trade. The world’s largest chip equipment supplier, ASML, echoed similar warnings, saying that tariffs have clouded forecasts not only for 2025 but for 2026 as well.

According to estimates discussed in last week’s congressional hearings, American chip equipment makers are staring down $1 billion in annual losses tied to these trade barriers.

Airlines Face Uncertain Skies Ahead of Summer

While tech was the headline victim, the airline industry is also growing anxious.

Carriers are bracing for a turbulent summer travel season, citing both fuel price volatility and weakening consumer confidence linked to macroeconomic fears. The longer the trade tensions drag on, the more likely Americans and global tourists will cut back on discretionary spending like flights and holidays.

With jet fuel prices remaining unstable due to tariff-fueled energy market disruptions, some airlines are already cutting schedules in anticipation of a tougher quarter.

Fed’s Powell Warns of Growth Slowdown, Cites Tariff Risks

Federal Reserve Chair Jerome Powell joined the chorus of concern on Wednesday. While addressing slowing economic activity in the U.S., he noted that persistent tariff policies risk derailing the central bank’s efforts to cool inflation gently.

“Tariffs introduce uncertainty for businesses and potentially add upward pressure on prices,” Powell warned, signaling that the Fed is now watching the trade war as a key variable in its rate-cut timing.

Even though U.S. inflation has moderated slightly, the threat of import-driven price shocks could limit the Fed’s ability to cut interest rates aggressively in 2025.

Business Leaders Sound Alarm Over Policy Uncertainty

Across boardrooms, the mood is shifting from caution to outright frustration.

“What was true yesterday is no longer true today, and what will be tomorrow I do not know,” lamented Jean-Christophe Babin, CEO of Italian luxury brand Bulgari, a subsidiary of France's LVMH. The quote underscores how businesses are grappling with what seems like an unpredictable trade chessboard.

Many firms have already paused capital investment plans or expansion strategies, choosing instead to wait for clarity. Some are exploring reshoring supply chains, but that process is costly and takes time.

Global Trade Talks Remain Murky

Despite Trump’s public claims that countries are “lining up” to strike new deals with the U.S., actual progress remains sluggish.

Negotiations with Japan are reportedly underway, with Trump set to personally participate in discussions over auto tariffs. However, these talks come amid rising tensions, especially after Japan voiced concern about inconsistencies between the latest U.S. policies and their 2019 trade agreement.

The situation with the European Union, Canada, and other trade partners is even more uncertain. With China, the outlook is grim: both nations are entrenched in a full-blown trade war, and retaliatory tariffs continue to escalate.

In-Depth: Why Markets Keep Reacting Sharply

Although Wall Street volatility has cooled slightly since its early-April peak, underlying tension remains high.

• The S&P 500 has dropped over 5% this year, shedding nearly $5 trillion in market value. 
• The Dow Jones Industrial Average has struggled to hold gains, with industrials and exporters caught in the tariff crossfire. 
• Gold prices surged to new highs, as investors sought safety in traditional hedges. 
• U.S. Treasury yields fell, with bond prices rising amid fears of a broader economic downturn. 

Traders are rotating out of risk assets like tech stocks and into safe-haven plays such as gold, the Swiss franc, and defensive sectors like healthcare and utilities.

Final Thoughts

Trump’s trade war is no longer just a policy debate it’s now a full-blown financial shockwave hitting multiple sectors at once. From semiconductor giants to airline operators and global luxury brands, the business world is feeling the heat. With economic uncertainty rising and market sentiment turning cautious, investors may need to brace for more rough waters ahead.

The only thing markets hate more than bad news is unpredictability and right now, that’s the biggest export of Trump’s tariff policy.

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