Jake Safane
5 min read
In the recent stock market turmoil that has coincided with President Donald Trump’s reciprocal tariffs, so many stocks across industries have taken substantial hits. Even companies that aren’t necessarily directly affected by tariffs, due to not basing their business on imported goods, have seen their share prices tumble, considering the interconnectedness of the global economy.
Take American Express (AXP) stock. The credit card company’s stock closed at $275.25 on April 2, 2025, and it had fallen to $231.39 at the close on April 8, 2025. That’s approximately a 16% decrease in less than one week.
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While some reciprocal tariffs have temporarily been paused and the stock has seen some gains since, it’s still down over 16% for the year, as of April 10. Does this dip present a good buying opportunity? Here are some of the pros and cons of investing in American Express stock right now amid tariffs.
On the positive side, investing in American Express might be beneficial due to the company’s overall strength, reputation and ability to navigate an economic downturn, according to experts.
“The company’s balance sheet is strong. Amex has weathered plenty of storms, and it has done it better than most companies,” said Joe Camberato, CEO of National Business Capital, a business lending platform.
While American Express is exposed to the risk of a downturn, it could still be a better pick than some other companies that could take longer to recover, if at all.
“The downside is the company is heavily tied into the business world, so if there’s a business [downturn], then Amex will feel it. But the company is built for that kind of pressure. American Express is incredibly selective about who it lends to,” Camberato said. “So if the economy hits a rough patch, I would still bet on Amex being in a much better position than many other consumer-focused credit card companies that take on riskier borrowers.”
Relatedly, American Express is potentially in a better position than some other competitors due to its relatively high annual credit card fees for some of its products, especially if the economy holds up. These annual charges create “a subscription-like stability,” said Michael Ashley Schulman, CFA, chief investment officer and founding partner at Running Point Capital Advisors, a multifamily wealth management firm.
