Tariffs and the stock market
What tariffs are, who pays them, and which stocks tend to win or lose when new tariffs are announced.
What a tariff is
A tax on imported goods, paid by the importer when the goods cross the border.
Who loses
Companies that import parts or finished goods, like retailers and carmakers, face higher costs. If they cannot raise prices, profits fall.
Who can win
Domestic producers that compete with the tariffed imports may gain market share or pricing power.
Retaliation
Trading partners often answer with their own tariffs, which hurts exporters such as farm equipment makers and aircraft builders.
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More guides
Frequently asked questions
Do tariffs raise prices for consumers?
Often partly. Studies of recent US tariffs found much of the cost was passed on to buyers.
How quickly do stocks react?
Usually on the day of the announcement, sometimes before if the plan leaks.
Are tariffs permanent?
No. They can be raised, cut, delayed or struck down, which is why markets react to each new headline.