American Express Stock Dips in Three-Day Slump Amid Trade Policy Turmoil

American Express (AXP) experienced a downturn, with its stock declining by 3.43% on May 21, marking a three-day consecutive slide amounting to a total decline of 4.58% over the past three days. The movement in American Express stock comes amidst broader economic uncertainties influenced by fluctuating U.S. trade policies.

Over these days, the trade policies under scrutiny have largely stemmed from the Trump administration’s controversial tariff measures. As various states continue to challenge these measures legally, the related economic ramifications are noticeable across several sectors. American Express’s performance could signal investor trepidation regarding such policies amidst broader market apprehensions.

The legal stirs regarding these tariffs have made significant waves. Recently, twelve states formed a coalition to legally challenge the federal government's tariff policy, citing the constitutionality concerns under the International Emergency Economic Powers Act (IEEPA). The crux of the argument suggests that President Trump has overstepped constitutional boundaries by imposing these tariffs without Congressional consent, posing legal challenges that could linger for months or even years.

In this context, American Express, like many other major entities, is seen navigating a landscape complicated by rising commodity prices and regulatory uncertainties. The company’s stock trajectory reflects the broader sentiment affecting multinationals caught in the crossfire of U.S. internal and external economic policy disputes.

Despite these challenges, the resolution of such economic policies remains uncertain. Many analysts suggest potential outcomes could redefine the capabilities of executive powers concerning trade policy, impacting sectors reliant on international commerce and finance, such as American Express.