Stock market plummets as consumers brace for an increase in prices

FRESNO, Calif. (KFSN) -- Trump's sweeping tariffs take the stock markets by storm, most closing down around 4% after the president announced reciprocal tariffs on global trading partners.

"Wow! We understood that emotion was going to play a role, when people get emotional with the market, they start taking their money out, so we expected that. I didn't expect such a significant drop, but we'll see how it plays out," says Sean Mason, Mason Street Wealth Management.

Sean Mason, a financial advisor of over 20 years, saw an influx of calls the morning after the tariff announcement. He puts the drop in perspective.

"Today, if you had $100,000 invested in the market, you probably have 94,000 to 96,000 at this point," says Mason.

But Mason says it's still early, and that it all depends on how long it will take for the market to recover.

"We hope that dips like this are short-term. We hope that is not a 2008 or 2001, where it takes four or four and a half years to recover. That wouldn't be good, but we don't expect that from this," says Mason.

Tariffs are prompting mixed emotions from consumers.

"I am a supporter of the tariffs because I do believe it's going to release the prices, but it will equalize across the spectrum depending on this supply and demand curve," says Richard

Others fear it's too much for already struggling Americans.

"Groceries for everyday living. There are a lot of people who are barely making it, and to have to raise prices makes it harder on them," says Lupe

Industries across the board are already feeling the "short-term pain" Trump promised as he rolls out his agenda.

Fast Trak Metal in Fresno says since President Trump announced potential tariffs on steel and aluminum back in February, they've had prices skyrocket by 20 to even 30% for local buyers.

Experts warn the far-reaching tariffs will drive up prices on an array of goods like clothing. Chinese brands like Shein could double in price. Things like coffee, laptops, phones, and even wine.

"A lot of distribution companies that are importing wine from Europe, they're already telling us the prices are going to go up, and if you want to take advantage of the current prices, you might as well do that," says Tony Mehrtash, Owner of Bella Vino Cellars.

Mehrtash at Bella Vino Cellars at Fig Garden is already planning to stock up on his foreign wine, like Champagne, he buys from France, before it's too late.

"I'm anticipating that by midyear, we're going to see drastic changes in the pricing," says Mehrtash.

And even though there is still a lot of uncertainty, the White House is doubling down on this plan and says Trump is standing firm on his policy, urging Wall Street to trust the plan.

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