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Markets are ending up being rattled by the rising profession talks as President Trump increases on the toll plans from his very first term.
Stocks dropped Monday, with the S&P 500 (^ GSPC) logging its worst day of 2025, after Trump stated that 25% tolls on products from Mexico and Canada would certainly move forward on March 4. Trump likewise pledged that the United States would certainly impose an added 10% toll on Chinese imports.
The changing state of mind out there resembled comparable relocations this year complying with toll headings. According to Wall Street expert Kenny Polcari, “Tariffs aren’t the problem. Investor panic is.”
“Every time tariffs hit the headlines, the market throws a fit, stocks dive, the media screams trade war, and investors act like it’s 2008 all over again,” Polcari suggested on Yahoo Finance’s Trader Talk podcast (see video clip over or pay attention listed below). “But let’s just take a step back. Are tariffs really the disaster that they’re made out to be?”
The major indexes have been down over the past month as Trump floated several new tariff ideas, including reciprocal tariffs and new duties on steel and aluminum, among other products. But although tariff concerns have been front and center, investors have seen stocks rebound from sharp downturns.
Read more: What are tariffs, and how do they affect you?
“The pavlovian response was outrageous,” Polcari said of the sell-off in early February when Trump announced tariffs on Mexico and Canada. “Stocks tanked, volatility increased, and formulas stressed.”
“But what occurs when the dirt clears up?” he continued. “Executives readjust. Trade offers obtain renegotiated, and financiers understand that the globe is not finishing. Those that remain tranquil and placement themselves appropriately will generally win.”
President Trump has touted that tariffs promote domestic jobs, goods, and services and that the increase in government revenue would allow the US to pay down the country’s national debt — which currently sits at $36.5 trillion.
However, forecasters note that the cost of tariffs often falls on consumers, who pay higher prices for everyday goods imported from abroad.
Still, Polcari argued that investors’ tendency to adjust their investments in anticipation of potential impacts from tariffs may be hurting as much as or more than the tariffs themselves.
“If you’re dumping stocks because of tariffs, you’re doing it all wrong,” Polcari said.
Great Hill Capital chairman and managing member Thomas Hayes agreed, saying that despite the panic these tariffs have caused in the short term, the effect will likely be neutral in the long term.
