The US financial markets, Wall Street, closed with sharp declines this Tuesday, after confirming a new increase in tariffs on Chinese products up to 104%, decreed by the administration of President Donald Trump. This measure, in response to Beijing’s trade retaliation, has revived fears of a full-scale trade war, with direct impacts on key sectors such as technology and consumer goods.
The Dow Jones Industrial Average fell 0.84% and closed at 37,645.59 points, while the S&P 500 dropped 1.57% to 4,982.77 units. The tech-dominated Nasdaq Composite index lost 2.15%, ending at 15,267.91 points.
The hardest hit sector
Technology companies with strong exposure to China led the losses.
Apple, whose second most important market is Asia, fell 4.98%, dragging down the sector.
Amazon (-2.62%), Nvidia (-1.37%) and Alphabet (-1.40%) also registered declines, evidencing investors’ nervousness in an environment of increased global tension.
Prior to the news, Wall Street had started the day in positive territory, betting on a possible easing of tariffs through bilateral negotiations.
However, statements from the White House ruled out any immediate progress, which caused a turnaround in the trend.
Political context
Buzzy
The White House explained that the increase to 104% in tariffs is in response to China’s refusal to withdraw its 34% tariffs imposed on U.S. products.
This was in response to the 54% levies established by the US at the beginning of April.
These moves have caused concern not only among investors, but also in business circles that have traditionally supported Trump.
Among them, figures such as Jamie Dimon (JPMorgan) and Larry Fink (BlackRock) have recently expressed their disagreement with the direction of trade policy.
Goldman Sachs raised its US recession forecast to 45%, reflecting the growing economic risk.
To be considered
This scenario could affect thousands of small Hispanic investors, especially those with holdings in retirement funds or investments in technology stocks.
This measure has revived fears of a large-scale trade war
QueOnnda.com
Prices of electronics, consumer goods and digital services are also likely to increase if the trade war escalates.
For Latino workers in the logistics, manufacturing and import-export sectors, the uncertainty could translate into less economic activity or even job adjustments.
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