The stock market fell sharply in anticipation of President Trump’s tariffs, which are scheduled to take effect this April 9. International markets also dropped considerably as investors prepared for an oncoming trade war.

In a press conference, Trump called the policy “medicine” to fix a trade deficit in the American economy. However, numerous economic experts, including some from the Republican party, have criticized the tariffs’ destructive potential. Once they take effect, the tariffs would likely slow growth and create a more volatile economy – one in which a recession is far more likely. 

This financial downturn could create problems for U.S. households: approximately 60% of Americans have investments in stocks, mainly for retirement accounts and long-term savings. Additionally, experts project that groceries could become more expensive under Trump’s tariffs.