Impact of U.S. Tariff policy announcements in 2025 on financial markets: evidence from listed real estate companies

This study investigates stock-market reactions to the postponement of U.S. tariff implementation announced on 9 April 2025, focusing on 661 listed real estate firms across 40 countries. Using an event study, we examine whether market responses vary by market classification, real estate subsector, firm size, valuation characteristics, and country-level tariff exposure. The results show significantly negative cumulative abnormal returns (CARs) during the pre-event period, indicating that investors had incorporated concerns about tariff-related uncertainty and potential economic disruptions before the postponement. Following the announcement, CARs generally became positive, although the magnitude and persistence of recovery varied substantially. Emerging markets exhibited stronger pre-event declines than developed markets, while frontier markets experienced the most persistent negative responses. Real Estate Operations, Residential REITs, and Commercial REITs also displayed heterogeneous adjustment patterns. Smaller firms and firms operating in higher-tariff countries experienced stronger negative pre-event reactions. Overall, the findings indicate that tariff-policy information affects real estate securities through a combination of trade exposure, uncertainty, investor expectations, and financial conditions. The study extends evidence on external policy shocks by demonstrating substantial cross-market, subsector, and firm-level heterogeneity in real estate market responses.