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Meh. It’s actually not much to brag about.South Korean stocks also hit new highs recently, and they’re up 37% so far this year. German stocks are up 28%. Mexican stocks, up 27%. The gain in Hong Kong is 20%. All foreign stocks combined are up about 15%.The big 2025 gain American stock investors are celebrating? A paltry 5%.That modest gain is obviously better than the dismal April sell-off that followed President Trump’s April 2 announcement of sweeping “reciprocal tariffs” on imports from dozens of countries. Within a few days of that depressing news, US stocks were down 16% for the year. Trump blinked and postponed most of those tariffs till July 9. There’s a good chance he’ll postpone the deadline again as it draws nigh.The US stock market has clawed back Trump-induced losses as Trump has modulated his tariff demands. When Trump took office in January, the average tax on imports was around 2.5%. The reciprocal tariffs would have raised that to around 28%, high enough to force price hikes on millions of consumers, dent corporate profits, and possibly cause a recession.While Trump postponed the reciprocal tariffs, he left in place a bunch of others, including a new baseline tariff of 10% on most imports; a 30% tax on most Chinese imports; additional tariffs on steel, aluminum, automotive products; and a few other things. The average tariff is now around 15%.Read more: 5 ways to tariff-proof your financesUS stocks got back into positive territory for the year in May, and they’ve drifted upward since then. Investors have basically decided they can live with the Trump tariffs as they are now. Growth will be slower and inflation higher, but investors’ collective assessment is that the public companies that comprise the US stock market will largely be able to protect their profit margins.Yet the longstanding allure of American stocks has vanished during Trump’s second term. “The first half of 2025 is a case study on why investors should consider international diversification,” investing firm Charles Schwab advised in a recent analysis. “US stocks have underperformed international stocks so far this year amid unpredictable and uncertain policy moves in the U.S. The second half of the year may see continued volatility and international stock market leadership could remain a trend.”NEW YORK, NEW YORK - JUNE 23: Traders work on the floor of the New York Stock Exchange during morning trading on June 23, 2025 in New York City. Stocks opened slightly up as the market reacts to the U.S. striking three nuclear sites in Iran over the weekend, raising fears of an increase in oil prices. (Photo by Michael M. Santiago/Getty Images) · Michael M. Santiago via Getty ImagesDrop Rick Newman a note, take his weekly economy quiz, or sign up for his newsletter.Trump says foreign countries pay his tariffs, which is patently untrue. Investors know that, part of the reason US stocks are floundering. American importers pay the tariffs to the US government the moment they receive a foreign shipment. Those businesses bear the cost of the higher tariffs right away. Then they pass on as much of the higher cost to their own customers as possible, all the way to ordinary consumers.Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P 5006,183.64 +42.62 (+0.69%)Dow 3043,900.96 +514.12 (+1.18%)Nasdaq20,293.79 +125.88 (+0.62%)Russell 20002,183.57 +11.46 (+0.53%)VIX16.44 -0.15 (-0.90%)Gold3,286.80 -61.20 (-1.83%)PortfolioSign in to access your portfolioSign inTop gainersNKE NIKE, Inc. 73.75 +11.21 (+17.92%)SATS EchoStar Corporation 28.92 +3.46 (+13.58%)KTOS Kratos Defense & Security Solutions, Inc. 46.20 +4.87 (+11.79%)PTON Peloton Interactive, Inc. 6.92 +0.53 (+8.29%)HIMS Hims & Hers Health, Inc. 50.18 +3.90 (+8.42%)Top losersNEGG Newegg Commerce, Inc. 12.06 -1.51 (-11.16%)MP MP Materials Corp. 32.99 -3.00 (-8.34%)QS QuantumScape Corporation 7.03 -0.62 (-8.04%)HSAI Hesai Group 21.26 -1.84 (-7.97%)NKTR Nektar Therapeutics 27.50 -2.18 (-7.33%)Most activeNVDA NVIDIA Corporation 158.04 +2.95 (+1.90%)LCID Lucid Group, Inc. 2.1399 -0.0601 (-2.73%)PLTR Palantir Technologies Inc. 138.80 -7.51 (-5.13%)QS QuantumScape Corporation 7.03 -0.62 (-8.04%)NKE NIKE, Inc. 73.75 +11.21 (+17.92%)Earnings eventsTrending tickersNKE NIKE, Inc. 73.76 +11.22 (+17.94%)PLTR Palantir Technologies Inc. 138.84 -7.47 (-5.11%)HIMS Hims & Hers Health, Inc. 50.33 +4.05 (+8.75%)NFLX Netflix, Inc. 1,326.02 +19.35 (+1.48%)SNAP Snap Inc. 8.61 +0.47 (+5.78%)Top economic events