American Express Plunges 3.71% Amid Tariff Concerns

On April 7, 2025, American Express experienced a 3.71% drop in pre-market trading.

American Express, a leading global payments and travel company, has been impacted by recent geopolitical tensions and trade policies. The U.S. government's announcement of "reciprocal tariffs" has sparked widespread concern and criticism from economists and political analysts. The calculation method used by the Trump administration to determine these tariffs has been widely criticized for its simplicity and lack of economic rationale. Economists argue that the method does not align with modern definitions of trade deficits and overestimates the impact of tariffs.

The implementation of these tariffs has raised concerns about the potential long-term economic instability in the U.S. and its global implications. Economists warn that such protectionist measures could lead to a prolonged period of economic uncertainty, affecting various sectors, including the financial services industry. American Express, with its significant exposure to international markets, is likely to feel the ripple effects of these policies.

In response to the tariffs, many companies have begun to explore strategies to mitigate the impact. Some have already started shifting production to countries with lower tariffs, while others are seeking alternative markets to reduce their reliance on the U.S. market. American Express, with its diverse range of financial services, may also need to adapt its strategies to navigate the changing trade landscape.