In the midst of ongoing stock market volatility, which has been largely influenced by President Donald Trumps implementation of reciprocal tariffs, many companies across various industries have experienced significant declines in their stock prices. This trend is not limited to businesses directly involved with imported goods; in fact, the fallout has spread throughout the market, reflecting the tight interlinkages of the global economy.

One notable example of this downturn is American Express (AXP). The credit card giant saw its stock price drop from a closing value of $275.25 on April 2, 2025, to just $231.39 by the end of trading on April 8, 2025. This dramatic decline represents a staggering 16% decrease in a mere span of five days, showcasing how quickly market sentiments can shift.

Although there have been some positive movements in the stock since this low point, it remains over 16% down year-to-date, as of April 10. This begs the question for investors: does this dip in price present a good buying opportunity for American Express stock? Lets delve into some of the pros and cons associated with investing in the company against the backdrop of these tariffs.

Pros of Investing in American Express

On the positive side, experts argue that American Express may offer a worthwhile investment despite the current economic headwinds. The company is well-known for its strong financial standing, robust reputation, and demonstrated ability to navigate through economic downturns effectively.

Joe Camberato, CEO of National Business Capital, a business lending platform, commented on the company's resilience: The companys balance sheet is strong. Amex has weathered plenty of storms, and it has done it better than most companies. He further emphasized that while American Express faces risks associated with a potential economic downturn, it may still outperform many of its competitors that could struggle significantly during hard times.

Camberato highlighted, The downside is the company is heavily tied into the business world, so if theres 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. 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.

Additionally, American Express holds a competitive edge over some rivals due to the relatively high annual fees associated with several of its credit card products. This pricing strategy potentially provides a form of subscription-like stability, as noted by Michael Ashley Schulman, CFA, chief investment officer and founding partner at Running Point Capital Advisors, a multifamily wealth management firm. If the economy remains stable, these fees could enhance the companys profitability and business resilience.