American stocks lost trillion dollars after President Donald Trump announced the imposition of large customs duties on imports, and international stock indicators, such as the Japanese Nikki index and the German DAX index, declined with global trade damage from customs duties.
The shares recovered after Trump indicated that he was negotiating with countries, such as Japan and South Korea, to reach what his press secretary, Caroline Levitte, described as “specially designed trade deals.”
The Vox website asked a question about the speedy completion of these deals without causing more chaos in the financial markets.
Americans … not the wealthy
According to the site, there is a perception that the performance of the stock market primarily affects the wealthy, and this is something of the truth, as the 10% of Americans possessed 93% of the total American shares in 2023, according to the data of the Federal Reserve Bank (US Central Bank).
But the matter is not so simple, according to the report. The majority of Americans have money related to stocks, and therefore the market decline causes widespread and more severe damage to individuals with limited wealth who may be less able to wait for the calm market fluctuations.
Who invests in the stock market?
The majority of Americans (62%, according to the Gallup Foundation) have shares in one way or another, whether they are individual or from investing in retirement plans, individual accounts, joint investment funds and pensions.
More Americans have been invested in the stock market more than ever since 2007, on the eve of the great recession, in part due to the fact that buying shares has become easier than ever with the emergence of investment tools, such as the renovations of the incredible indicators and electronic platforms.
This also comes from necessary; In light of concerns about the future of social security benefits, and with most companies abandoning their pensions, about 70 million Americans now have retirement plans.
https://www.youtube.com/watch?v=g-u7elbzcgo
According to the report, a large percentage of Americans with medium and low -income Americans also possess shares and depend on their returns to finance their retirement, and even members of the United Automobile Workers Syndicate, and they are one of the largest supporters of Trump customs duties, who have money in the stock market from their guaranteed pensions from the union.
Those who are close to retirement or retirees may actually have the time to overcome the decrease in the stock market, and witness their accounts, forcing them to reduce their investments.
From this standpoint, the market fluctuations from Trump’s customs duties are not limited to the Wall Street elites.
The most affected
In several ways, the most affected ordinary Americans are expected to be the economic repercussions of Trump customs duties, which prompted American economists to raise their possibilities significantly.
They may not only witness a decrease in their net wealth as a result of the reaction of the stock market, but they may also expect a more difficult price and a business market.
Due to the companies’ confrontation with higher costs due to customs duties, the consumer is expected to bear this in the form of high prices, and economists expect that customs duties will lead to a decrease of $ 3789 in the income available to the American medium family.
American companies may also be forced to reduce costs by reducing their working power, which may lead to an increase in unemployment.
In general, all this indicates that Trump’s customs duties may lead to the opposite of what Trump described, that the intended effect: “Make America rich again.”
