Companies usually pass those cost increases along to buyers, which means tariffs cause inflation. And rising prices could certainly hinder economic growth. In fact, a forecasting model from the Federal Reserve Bank of Atlanta shows U.S. GDP declining at an annualized 2.4% in the first quarter. That would be the first drop in more than four years.

Investors should consider seeking the advice of expert investors like Warren Buffett when navigating volatile stock market conditions.

The stock market hasn't had a great start in 2025. Many tech companies are down to start the year, including most of the Magnificent Seven stocks. While the news has been ominous, more people