President Trump has imposed significant tariffs on goods from various countries, aiming to address perceived unfairness in global trade.

Tensions with China have escalated, with Trump raising tariffs on Chinese goods to a cumulative 145%, prompting China to retaliate with 125% tariffs on U.S. imports.

The initial tariff announcement on April 2, 2025, led to a sharp decline in stocks, with the S&P 500 and Nasdaq entering bear market territory.

Stocks rebounded after Trump announced a 90-day pause on tariffs to negotiate trade deals, but the S&P 500 still recorded its worst performance in a president's first 100 days since 1974, falling approximately 8%.

During Trump's second term, the U.S. stock market has seen significant fluctuations, with the S&P 500 recording its third-worst 100-day start to a presidential term in U.S. history.

Initially, the S&P 500 surged after Trump's reelection in November 2024, driven by expectations of a pro-business boom.

Concerns about a recession have increased following a 0.3% contraction in U.S. GDP in the first quarter of 2025, adding to the uncertainty in the economy.

The success of trade negotiations, especially with China, is critical for stabilizing the stock market, as companies warn of potential layoffs and price increases if high tariffs are reinstated.

Increased tariffs and uncertainty surrounding Trump's trade policies have raised concerns about a potential recession and market stability.

The likelihood of losing money decreases significantly the longer one holds investments; the chances are halved over five years and drop to 13% over ten years.

Investors are advised to maintain a long-term investment strategy, as trying to capitalize on short-term market fluctuations could be risky in the current environment.

Consulting a financial advisor for tailored advice is recommended, especially during uncertain market conditions.