Tariffs: They're the centerpiece of Donald Trump's second-term agenda, they're controversial, and they raise the price of imported goods. But until recently, their effect on the stock market was mostly a topic for dusty old economics textbooks. They just haven’t been all that impactful since the Great Depression era.
That changed in 2025. President Trump’s “Liberation Day” tariffs led to an immediate two-day, 11% drop in the S&P 500. But why is that? What was it about the tariffs that led to the selloff?
