Trump's customs policy has hit US stocks: Elon Musk's Tesla has suffered the most

Trump's customs policy, in particular the introduction of import tariffs, caused a sharp drop in stocks on US stock markets, including Tesla, which lost 45% of its value. As a result, the US stock market lost $3.6 trillion in capitalization.

Bloomberg writes about it. After Donald Trump's victory in the US presidential election , stock markets have experienced significant growth.

The S&P 500 index, which reached record levels, and the dollar showed a steady course. It seemed that the US economy, and the stock market with it, was on its way to new heights. However, the introduction of new trade tariffs on imports from Canada, Mexico, and China disrupted this positive momentum.

One of the first victims of this policy was the stocks of the largest tech companies, among which Tesla was the hardest hit. Its shares fell 45% from their peak at the end of 2024. Prior to that, the company's share price growth was impressive, especially after Trump's victory, when investors expected to benefit from Elon Musk's cooperation with the newly elected president. However, as time has shown, the change in customs policy was a real blow to the market.

In the month after the election, the S&P 500 index rose by 5%, and on February 19, it updated its historical high, rising by 6.3%. However, the introduction of tariffs on imported goods caused a sharp drop in stock markets. As of March 4, 2025, the S&P 500 was down 1.7%, and total losses reached 6.4% of the record, bringing the market back to the level recorded on Election Day.

One of the most striking examples of the collapse is Nvidia, whose shares have fallen 25% from their record highs of January 6. On March 3, 2025 alone, its shares fell by 8.7%, resulting in a loss of more than $800 billion in market capitalization.

Trump's policies, in particular tariffs, were the main factor behind this volatility in the stock markets. The application of high tariffs to goods from major economies such as China, Mexico, and Canada has forced investors to rethink their strategies. And while some analysts suggest that tariffs could be reduced or canceled to restore economic stability, this is currently only a theory that has not helped to avoid the current market problems.

It's also worth noting that other tech giants such as Alphabet Inc. and Meta Platforms Inc. have suffered significant losses, albeit less than Tesla or Nvidia. The market reacted to possible long-term trade tensions and risks associated with the global economic situation.

During these fluctuations, investors were actively looking for more stable assets. However, many large companies that have been the market's growth leaders in recent years have suffered significant declines. The tech sector, which had previously attracted investors' attention, came under great pressure. At the same time, other sectors, such as healthcare, consumer staples, and financials, continue to show stable results.

The overall picture on the market is now looking hazy. After the record highs in February, investors are facing a major correction, and the drop in Tesla shares is just one symptom of deeper economic problems caused by Trump's unpredictable changes in customs policy.

At the same time, risk-averse investors have already begun to dump their assets, including speculative companies that have been the biggest winners of the past two years. Tesla shares have become a symbol of this volatility, as their rapid decline from peak values has become one of the biggest losses on the market.

According to analysts, the market no longer looks as attractive to short-term investors who were betting on rapid growth. The high valuation of stocks and over-reliance on global supply chains have made many companies vulnerable to changes in Trump's trade policy. Although there is a lot of optimism in the forecasts, in particular due to possible tariff cuts, the market remains volatile, and the coming months could be no less difficult.

As OBOZ.UA reported earlier, Canada is imposing a 25% duty on American goods in response to Trump's trade measures and plans to stop exporting electricity to the United States. At the same time, China is introducing new tariffs and restricting the export of strategically important resources for American companies.

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