IDEAS home Printed from https://ideas.repec.org/a/fip/fedfel/101891.html
   My bibliography  Save this article

Market Reactions to Tariff Announcements

Author

Listed:
  • Rohit Garimella
  • Simon H. Kwan
  • Thomas M. Mertens

Abstract

Financial markets repriced assets across a wide range of sectors following the U.S. trade policy announcement on April 2, 2025. Analysis suggests that market participants interpreted tariffs to have direct effects not only on companies in the sectors involved but also indirect effects on overall demand. Investors expected declines in corporate profits to be persistent both in the United States and abroad. The U.S. dollar depreciated against other safe-haven currencies, which points to investors reallocating their portfolios away from the United States and toward other markets.

Suggested Citation

  • Rohit Garimella & Simon H. Kwan & Thomas M. Mertens, 2025. "Market Reactions to Tariff Announcements," FRBSF Economic Letter, Federal Reserve Bank of San Francisco, vol. 2025(23), pages 1-6, October.
    • Handle: RePEc:fip:fedfel:101891
    as

    Download full text from publisher

    File URL: https://www.frbsf.org/wp-content/uploads/el2025-23_5cfd27.pdf
    File Function: Full text - article PDF
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:fip:fedfel:101891. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Federal Reserve Bank of San Francisco Research Library (email available below). General contact details of provider: https://edirc.repec.org/data/frbsfus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.