New Trump tariffs on Mexico, Canada and China set to start Tuesday
Published On Feb 2, 2025, 8:05 AM
President Trump has implemented new tariffs of 25% on imports from Canada and Mexico, and 10% on imports from China, effective February 4, 2025. These tariffs are justified by Trump as a response to issues relating to illegal drugs and migration. Canada and Mexico are expected to retaliate with their own tariffs. Economic analysts warn that these tariffs could lead to a significant decline in U.S. GDP and affect purchasing power for American families. The tariffs are seen as a potential restart of U.S.-China trade tensions, reminiscent of the previous trade war.
Stock Forecasts
SPY
Negative
The introduction of these tariffs could negatively impact the stock market by increasing prices of goods and prompting retaliatory measures from other countries. Companies that heavily rely on imports or have significant operations in the affected countries may see their profits decline and subsequently their stock prices may fall. Analysts are cautious about the broader economic effects, forecasting potential contraction in GDP due to these tariffs.
Related News
The stock market is sensitive — yet clearly optimistic: Chart of the Week
Feb 1, 2025, 7:30 AM
Tech stocks fell sharply after the market realized the implications of DeepSeek's AI models. But they returned to where they were a week prior before dipping once again on Trump news. Which all points to a deeply sensitive — but optimistic — market.
Trump Moves to Invalidate Recent Labor Agreements With Federal Workers
Jan 31, 2025, 8:05 PM
The order is aimed at “last-minute, lame-duck” agreements signed by the Biden administration, a White House memo says.
2 charts show why markets are skittish about Trump's tariff policy
Jan 31, 2025, 9:43 AM
A wide range of tariff outcomes presents uncertainty for investors.