Tariff Shock Price Surge for U.S. Consumers as Bear Market Risks Deepen

A brewing economic storm is hitting American households and investors alike, as a sweeping new tariff slate on Chinese and Taiwanese imports threatens to ignite consumer prices and exacerbate a precarious bear market.

According to a new industry note from Wedbush Securities, the proposed tariffs—50% on Chinese goods and 32% on Taiwanese imports—will trigger a “Category 5 Price Storm” for U.S. consumers. “Every electronic [product] is heading down the same treacherous path,” warned Daniel Ives, Managing Director at Wedbush. “iPhones made in the US would cost $3,500 (vs. $1,000),” he noted, adding that the tech supply chain disruption could “take the US tech industry back a decade

Nintendo has already halted U.S. pre-orders for the upcoming Switch 2 console in response to the tariff fears—a canary in the coal mine, as Wedbush analysts see it. The cost shock is poised to ripple through everything from smartphones to vehicles, as key players like apple, microsoft, gm, amd, and Nvidia wrestle with suddenly upended supply chains.

The tariffs, described as “self-inflicted” by Wedbush, have come amid broader market turmoil and growing fears of recession. “It’s the foundation the U.S. tech world is built on, and these tariffs are flipping a boat upside down in the ocean with no life rafts,” wrote Ives. “It’s very easy to say ‘build in America’ behind a microphone in the Beltway… the reality is so much different it’s almost a scary concept”​

For consumers, the most immediate impact is clear: higher prices across virtually every tech category. For investors, however, the danger runs deeper and could linger longer.

Tariff Shock Fuels Bear Market Anxiety

Goldman Sachs’ latest Global Strategy Paper positions the current downturn as an “event-driven bear market,” catalyzed by the very tariffs now unsettling the global tech trade. “We argue that we are currently in an event-driven bear market. The event in this case was ‘liberation day’ and the sharp rise in tariffs it triggered,” wrote strategists led by Peter Oppenheimer​

While event-driven bear markets typically recover within a year, Goldman cautions that the situation could easily spiral into a more damaging “cyclical” bear market, where economic deterioration and falling corporate profits extend the pain. “Our economists have lowered their 2025 GDP growth forecast to 0.5% and raised their recession probability to 45%,” the report states. The average drawdown in such markets hovers around 30%, with recoveries taking multiple years​

Compounding the threat is the fragile state of U.S. equity valuations. Goldman’s Bull/Bear Indicator remains elevated, and the forward P/E on the S&P 500 sits in the 89th percentile of a 25-year dataset, suggesting further downside. “Valuations remain expensive… not compatible with recessions,” the report warns​.

The long-term investment landscape may also be shifting. As global trade slows and the cost of capital rises, Goldman forecasts “constraints on corporate profit margins” and urges investors to diversify. The strategic advice: lean into quality growth and dividend-compounding value stocks, while broadening geographic exposure​.

For now, consumers should brace for sticker shock, and investors may need to steel themselves for more downside. The intersection of trade policy and market fragility is creating a rare double-whammy—raising costs at checkout while eroding portfolio values.

If the warnings are correct, this “Category 5” isn’t just about trade—it’s a test of economic resilience. And both Main Street and Wall Street are in the storm’s path.