Wall Street investors have been sending mixed reactions to Trump’s tariffs as the US stock market slumps in 2025. All three leading indexes remain in the red year-to-date with Nasdaq being the highest hit at close to -9%. The S&P 500 Index is down nearly 5% while Dow Jones plummeted more than 1.5%. Very few stocks have generated profits in the last three months while the commodity markets take the lead in 2025.

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Gold prices are up close to 20% year-to-date as it touched an all-time high of $3,149 on Tuesday. Silver prices have shot up nearly 14.5% while copper prices surged 14% YTD. The metals sector takes the top spot while the US stock market generated the least profits making Wall Street worried. Trump’s tariffs and reciprocal tariffs are making the markets jittery as there’s no proper explanation for what’s going on.

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Trump’s Tariffs: Wall Street Takes the Hit

US President Donald Trump takes questions from reporters before boarding Air Force One
Source: Reuters

Wall Street is still uncertain about the benefits and the extent Trump’s tariffs have been beneficial to the US economy. Consumers and businesses are questioning the policies as they create an imbalance in the global trade sector. Leading investment bank Morgan Stanley wrote in a note to stakeholders that Trump’s tariffs could do more harm than good.

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“The administration cites fairer trade relationships as the goal, with reciprocity the governing principle for implementing tariffs. But beyond that, little is known about what this policy will entail,” Morgan Stanley said in a Monday note. The bank wrote to Wall Street that the White House is failing to reassure investors that tariffs help the US economy.

“This isn’t exactly reassuring to investors we talk to, who are perplexed by the dynamic of tariff announcements, negotiations, delays, and shifting levels of implementation for Mexico, Canada, China, and some key products,” the analysts said to Wall Street investors.

  • Tariffs
  • Trump Tariffs
  • US Stock Market
  • Wall Street