Share price reactions to tariff imposition announcements in the Trump era – An event study of the trade conflict

Employing a unique sample of 2,849 tariff imposition announcements by and against the United States (U.S.) over period from 2018 to 2019, this study analyzes impact recent on share prices 859 U.S. companies. We provide evidence for negative (cumulative) average abnormal stock returns due during symmetric three-day event window. suggest that market investors expect adverse impacts impositions, e.g. decrease in companies' future cash flows threat retaliation. The wealth effects are observed irrespective whether Trump administration announces safeguard tariffs protect domestic firms or retaliation is declared foreign countries. Moreover, building several subsamples, we find mostly driven involving China associated with variety sector, tariff, trade firm characteristics.