Equity Markets React To Trump's Tariff Announcements: The Data

Summary

• The cumulative negative impact of decisions imposing tariffs subtracted $377 billion from the market value of the Russell 2000, $2 trillion from the Magnificent Seven, $4.7 trillion from the S&P 500.
• Market losses were sharply reversed when Trump paused pending tariffs on April 9, 2025. Excluding the rebound following the April 9 pause, the negative daily changes far exceeded the positive daily changes.
• We explore equity market valuation changes immediately following each Trump tariff announcement. For this exercise, we examine the change in market prices between the close on the previous day and the close on the announcement day.

By Gary Hufbauer & Ye Zhang

Campaigning for a second term, President Donald Trump committed the United States to sweeping tariffs that have no precedent since the Second World War. Shortly after his inauguration, Trump issued multiple Executive Orders (EOS) and press releases both to