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In President Trump’s trade war with the world, trillions of wealth tied to the global market have evaporated within days. While all investors are under pressure, experts say the wealthiest Americans are probably seeing the biggest impact.
On Friday, the S&P 500 lost 6%, the Dow Jones Industrial Arage plunged 5.5% and the NASDAQ Composite Index plunged 5.8%. This decline marked the worst week of the S&P 500 since the start of the pandemic in March 2020.
“We’ve seen a lot of experience in the world,” said Carla Dennis, a California-based tax agent and business consultant. “They saw the market becoming a huge hit and said, “Should I do something? Should I pull out? What’s next?”
Dennis has received heavily invested in high-tech and international markets and shared the example of one of his high-net clients who has seen paper losses of more than $2 million this week.
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“That doesn’t mean they’ve lost money. It’s not gone until they sell, but it’s a big emotional hit. It’s hard to settle down when you open your account and see the red numbers,” she said.
So far, few winners have been from the trade war.
All but 12 of the 500 companies that make up the S&P 500 Index fell on Friday. Crude oil prices have fallen to their lowest levels since 2021. Other fundamental components of economic growth, such as copper, have also slipped prices based on concerns that the trade war would weaken the global economy.
President Trump argues that his gambling will ultimately pay off for the average American and investors.
From Mar-A-Lago, a private club in Florida, he wrote on social media before heading to the golf course.
The central question is: Will the trade war cause a global recession? If so, the stock price is likely to fall even further than it already has, wiping out even more wealth.
President Donald Trump is holding an executive order signed during the event to announce new tariffs at the White House Rose Garden on Wednesday, April 2, 2025 in Washington. (AP Photo/Evan Vucci)
“Back in the 19th and early 20th centuries, the ultra-rich people had much of their wealth tied to the real things, such as railways and factories,” says David Lazarus, KTLA consumer reporter. “Today, the ultra-rich people have mostly stock-only money, so when the stock market works, they become much richer. If the stock market has a bad day like today, they become poor.”
With the incredible market losses caused by the trade war, Lazarus believes that one patient is likely reaching out to the White House.
“The rich don’t miss out on food, so there is that,” he says. “But it seems like a pretty bet by a few people contacting the White House to say this is unacceptable.”
The Associated Press contributed to this report.
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