The Trump tariff idea may just be a numbskull off-the-cuff idea by the man-child in the Executive Office, but it is rumbling markets. This is a dangerous move at a time when the market is also concerned with the Fed attacking inflation data with higher rates.
It has been common knowledge in the economics profession for many decades that tariffs can lead to trade wars, and trade wars don't benefit anyone. On the whole, it will put pressures on our GDP and may result in higher input costs. This will result in either higher prices or lower earnings. Not a good position to be in.
There are ways to tackle Chinese dumping and benefit U.S. industries, but broad tariffs are not it. Let us hope that Trump backs down from this idea. Otherwise, the market (and the US as a whole) will probably suffer in the longer term.
I am a Chicago-area financial adviser to young doctors & business owners.