Will the Markets Check Trump’s Power?

Published On Nov 29, 2024, 5:02 AM

Following the election of President-elect Donald Trump, the financial markets are searching for indicators on how his administration may impact economic policies. Analysts are split on how much influence the markets will exert on Trump, especially with a solid Republican majority in Congress and a conservative Supreme Court. While Trump is likely to pursue his campaign promises without much resistance, the stock market's reaction to his proposed 25% tariffs on Canada and Mexico and a 10% tariff on China could either restrain or empower his policy decisions depending on corporate profits and economic growth. Currently, his mixed signals have resulted in a favorable reaction from the markets, indicating that they might continue to normalize and accept some of his more aggressive policies.