Lately, the U.S. stock market has been volatile due to President Trump’s new tariff policy that placed at least a 10% tariff on all foreign nations. The new tariffs have led to uncertainty and supply chain issues and have affected the confidence of investors. From April 2 to 7, the Dow Jones Industrial Average, which shows the major U.S. stock market index tracking 30 leading companies, dropped from 41,736 to 37,879, which is equivalent to a loss of almost $4,000 in the stock.
Business management and personal finance teacher Henry Hooper noted the impact on businesses that rely heavily on foreign suppliers.
“I think it is a state of absolute confusion,” said Hooper. “Companies who had single sources in China are going out of business. It’s very drastic. All of our supply chains are interconnected.”
Single sources in China are companies that rely on one supplier from China. Recent tariffs have disrupted these supply chains, forcing some businesses to shut down, showing how global trade issues can quickly affect the U.S. economy.
In an attempt to calm the markets, on April 9, 2025, the Trump administration announced a short pause on targeting Chinese imports, especially to help industries like technology and electronics. However, sources such as The Hill believe this pause will not help the overall stock market.
Junior Koko Zemsky, an IB Business student, says she and her classmates regularly discuss real-world economic issues, analyze the stock market and try to understand what causes changes in market trends.
She has noticed the effects of stock market fluctuations at home.
“My dad has money in the stock market, and with it going down significantly, his stocks also went down. Other people rely on stocks for their future and saving up for retirement, so that obviously has a negative impact on them,” Zemsky said.
Hooper voiced concern about the people leading current economic decision-making.
“I have real concerns about the individuals that Trump has pulled around him. … They are impacting the very opposite people they think they’re helping with a lot of their policies,” he said.
While experts such as the stock market have traditionally been a reliable long-term investment, many investors are now questioning what the future holds.