If Trump goes big on tariffs, lawsuits are likely to follow
Published On Jan 8, 2025, 11:22 AM
The article discusses the potential implications of President-elect Trump's plans to impose significant tariffs, including universal duties, upon taking office. It highlights potential legal challenges stemming from his proposed use of the International Emergency Economic Powers Act (IEEPA), which could invite lawsuits from business groups concerned about the sudden impact of these tariffs. Legal experts suggest that if Trump pursues this route, he would likely face immediate litigation and uncertainty, affecting importers and possibly delaying tariff implementation. The article also outlines other, slower routes for tariff introduction that are less legally vulnerable but may not align with Trump's desire for speed in execution.
Stock Forecasts
SPY
Negative
The anticipated legal challenges may create volatility in the market, particularly among sectors heavily dependent on imports or those that rely on exports. Industries such as manufacturing, technology (requiring foreign parts), and agriculture (which often exports) may see stock price declines as uncertainty creates trading hesitancy. Conversely, companies in domestic markets that could benefit from reduced foreign competition may experience a bullish trend.
XLP
Positive
Investors might consider defensive stocks or sectors with less sensitivity to tariffs. Such stocks could include consumer staples or utilities as they tend to be less affected by trade policies. Additionally, investing in domestic-focused companies that could gain from increased tariffs may provide some protection against market volatility.
Related News
Treasury Market Gets First 5% Yield in Sign of What Could Come
Jan 8, 2025, 11:10 AM
(Bloomberg) -- The 20-year Treasury bond offered a grim warning as a selloff fueled by inflationary angst gripped global debt markets: 5% yields are already here.Most Read from BloombergNYC’s Subway Violence Deters Drive to Bring Workers Back to OfficeDutch Central Bank Restores Amsterdam’s ‘Ugliest Building’Can American Drivers Learn to Love Roundabouts?NYC Condo Owners May Bear Costs of Landmark Green Building LawCan States Hit the Brakes on Runaway Roadbuilding?The 20-year yield, a laggard on
Bond 'tantrum' dawns as rout sends shockwaves through markets
Jan 8, 2025, 9:54 AM
A sharp selloff in some of the world's biggest government bond markets and a surge in the dollar are sending shockwaves through financial markets, with the pain seen deepening as uncertainty grows over Donald Trump's policies. Trump's plans for higher trade tariffs, tax cuts and deregulation threaten to push up inflation and strain government finances, thereby also limiting the Federal Reserve's scope to cut interest rates. The S&P 500, which rallied post Trump's win, has started to falter.
Private sector adds 122,000 jobs in December, below expectations, ADP says
Jan 8, 2025, 8:24 AM
Companies in the private sector added 122,000 jobs in December, payroll processing firm ADP said on Wednesday. The figure is below economists’ estimates of 140,000 jobs.