President Donald Trump has announced a new global import tax policy, shifting towards a 10% basic import tax on products worldwide, with higher rates for countries with trade deficits like China at 34%, European countries at 20%, Japan at 24%, and Thailand at 36%.
The numbers from this policy have led to a sharp decline in the US stock market, with the S&P 500 index dropping by 2.8%. Tech companies Apple (-7%), NVIDIA (-5%), Alphabet (-3%), Meta (-5%), Amazon (-6%), Tesla (-8%), and Microsoft (-3%) have all taken significant hits.
The significant impact comes from many companies having manufacturing bases in China and Asia, which will be affected by this new import tax. During the announcement, Trump praised Apple, Meta, and NVIDIA for increasing investments in the United States.
Source: CNBC Image: Pixabay
TLDR: President Trump’s new import tax policy has caused a decline in the US stock market, particularly impacting tech companies with manufacturing bases in China and Asia. Despite this, Trump has commended some companies for increasing investments in the US.
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