Tariffs are due to go up to 25% on March 2 if there is no agreement. The equity markets are global and can absorb that hit now, priced in. With 100% tariffs there would be instant adjustment of the stock market to maybe 1/3 or 1/2 its value. Then a couple years of adjustments to get back the value with American manufacturing. But in the meantime a deep recession triggered by the loss in payments and liquidity that come from the market.
There's going to be an shift away from Chinese manufacturng dominance under Trump, but it will take time.