Tariff Trouble in Paradise

Is there tariff trouble in stock market paradise?

Ever since April 2nd, Trump’s so called “Liberation Day,” tariffs have loomed over the market. Despite trade deal after trade deal, the threat of Trump leveraging tariffs against other countries has worried investors around the globe.

After April 2nd, indicies fell over 10% in a week, and have since rocketed over 30% from the bottom. Despite this, a new round of tariff threats towards China is shaking up the stock market. On top of this, Trump has cancelled his meeting later this month with China’s president, Xi Jingping.

So what’s at the bottom of all of this? Important and precious rare earth metals. Trump claims that China is holding these rare earth metals hostage, which in reality is far from the truth.

Despite China producing around 70% of the worlds rare earth’s, no country has pushed to discover new reserves or cut red tape to induce mining and exploration. In large part because of environmental concerns in countries like America and Australia.

The most worrying part of todays announcement was not the tariffs, but instead the cancellation of the meeting between the world leaders. This not onl jeopardizes the stock market, but the US economy as a whole. The only thing worse than leveraging tariffs is the cessation of talks as a whole, and it looks like we may be nearing that point.

As always, utilize these buying oppurtunities for instruments like SPY, QQQ, SPXL, ect. Make sure to do your own due diligence, pick equities you like, and stay informed.

Stay up,

SG