Will President Trump's Tariffs Cause the Stock Market to Crash in 2026

Group 1 - The impact of tariffs on corporate earnings is significant, and stock prices tend to correlate with earnings [4][5][6] - The S&P 500 experienced a temporary plunge due to tariff announcements but finished 2025 up 16% [4] - Many companies increased their imported product inventories before tariffs were implemented, cushioning the earnings impact [5][6] Group 2 - The relatively benign impact of tariffs on the stock market may not last, with potential changes in 2026 [7][8] - Companies may begin passing higher prices from tariffs onto consumers, which could affect stock prices [7][8] - Despite the potential for tariffs to weigh on stock prices, they are not expected to cause a market crash on their own [8]