Impact of Trump's Tariffs on the U.S. Economy
Written by Emily J. Thompson, Senior Investment Analyst
Updated: Feb 26 2026
0mins
Should l Buy TM?
Source: Fool
- Tariff Impact Analysis: Numerous studies indicate that Trump's tariff policies have imposed most costs on U.S. businesses and consumers, and despite the Supreme Court striking down some duties, Trump has replaced them with a 10% global tariff, exacerbating economic uncertainty.
- Investor Shift Trend: Due to uncertainty about economic impacts, some investors have moved money from U.S. stocks to international markets, resulting in the S&P 500 trading sideways this year while the Vanguard FTSE Pacific ETF rose by 18% and the Vanguard FTSE Developed Markets ETF increased by 11%.
- ETF Performance Comparison: The Vanguard FTSE Pacific ETF tracks about 2,300 Asia-Pacific companies and has outperformed the S&P 500 by nearly 18 percentage points year-to-date, primarily due to strong performances from Samsung and SK Hynix, despite lagging by about 150 percentage points over the past decade.
- Market Outlook: While the Vanguard FTSE Developed Markets ETF has outperformed the S&P 500 by nearly 11 percentage points year-to-date, it has not performed as well as the Vanguard FTSE Pacific ETF due to less exposure to chip manufacturers, indicating potential challenges ahead.
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Analyst Views on TM
About TM
Toyota Motor Corp is a Japan-based company mainly engaged in the automotive business, as well as financial services and other businesses. It operates through three business segments. The Automotive segment designs, manufactures, and sells automobiles, including sedans, minivans, compact cars, sport utility vehicles (SUVs), and trucks, as well as related parts and accessories. The Financial Services segment provides financing and vehicle leasing services to complement the sales of automobiles and other products manufactured by itself and its affiliates. The Other segment engages in information and communications services. It also oversees manufacturing and sales companies, conducts public relations and research activities, oversees financial companies, and develops various mobility products, primarily software.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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