Effect Of Trump Tariffs On Market Confidence Levels And Investment Decisions In The United States
Onoh John Okey (Ph.D)
Abia State University, Uturu
Mbanasor Christian (Ph.D)
Department of Banking and Finance, Imo State Polytechnique, Omuma, Imo State
Keywords: Effect, Trump’s Tariffs, Market Confidence Levels, Investment Decisions , United States
Abstract
The focus of the research is on the effect of the recent tariffs of the United States on imports and how it affects market confidence levels and investment decisions. The source of data is primary as the research sought to get responses of United States business community. The Trump administration's tariff policies have introduced a new era of trade tensions and economic uncertainty, which has had a profound impact on financial markets. Despite the importance of understanding the effects of these policies, there is limited research on how they have influenced investment decisions and market volatility. The questionnaire was structured and to 5-point Likert scales. The instrument was administered on google sheets through the internet to save cost and time through well-meaning individuals through research agencies based in the United States. . Therefore, based on the Deviance chi-square p-value <.05 (p = .074) it is evident that a good fit exists between the model and the data for hypothesis one. The study utilized factor analysis and found a positive relationship between Trump tariffs and market volatility in hypothesis two with a measure of sampling adequacy (.876) and Bartlett's test of sphericity (p=.000) support the factor analysis results. In hypothesis three, the study found that the uncertainty surrounding Trump tariffs has led to increased risk aversion among investors, with a p-value of .000. The significant p-values of the Kruskal Wallis table and aggregated tests confirm the existence of differences among investors in their levels of perceptions of Trump's tariffs. The study's conclusions on the impact of Trump tariffs on market confidence levels and investment decisions in the United States reveal a concerning trend. Trump's tariffs have significantly contributed to market volatility, uncertainty, and decreased investor confidence. Recommendations include Tariff Exclusions and Reclassifications, Supply Chain Diversification, Strategic Contract Negotiation, utilizing Free Trade Agreements (FTAs), Tariff Engineering and Duty Drawback Programs