The Impact of the U.S.–China Tariff Policies on Stock Market Sectors and Investor Sentiment

The U.S.-China tariff policies have brought significant uncertainty into the financial markets, contributing to stock market volatility and raising concerns about future trade policies. This study examines how U.S.-China tariff policies affect stock market sectors and investor sentiment. While existing research analyzes these two dimensions separately, this study addresses a gap in research by integrating both perspectives. Using a literature-based synthesis, this paper synthesises insights from 16 academic and industry studies published primarily between 2015 and 2025. This study explores how different stock market sectors respond unevenly to tariff policies, emphasizing differences in trade exposure, supply chain dependence, and market structure. At the same time, this paper examines the role of investor sentiment in shaping market reactions to tariff-related uncertainty, focusing on how expectations and perceived risk influence short-term market behavior.