Back to Glossary
General TradingT

Tariff Tantrum

A period of market volatility caused by unexpected tariff announcements or escalations in trade disputes between countries. Investors react sharply to potential disruptions in global trade flows.

Example

Markets experienced a tariff tantrum when new import duties were unexpectedly announced on $200 billion worth of goods, causing the S&P 500 to drop 3% in a single session.