Trade War Heats Up After Trump Orders Tariffs and Canada Retaliates
Published On Feb 2, 2025, 4:57 PM
The U.S. is entering a new phase of protectionism as new tariffs have been imposed on imports from Canada, Mexico, and China. Canada plans to impose 25% tariffs on a range of U.S. goods, Mexico is preparing its own countermeasures, while China has announced it will respond legally at the WTO and retaliate with its tariffs. The situation is causing concern about rising prices and escalating trade tensions.
Stock Forecasts
XLI
Negative
The current trade tensions and imminent tariffs will likely lead to increased costs and decreased sales for U.S. exporters, particularly in sectors affected by the tariffs like agriculture, manufacturing, and retail.
EWC
Positive
In contrast, Canadian and Mexican exporters may benefit in the short term as domestic markets may shift to sourcing locally or finding cheaper alternatives.
Related News
Canada, Mexico announce retaliatory tariffs on US imports in response to Trump's tariffs on American neighbors
Feb 2, 2025, 12:57 AM
Canada and Mexico announced tariffs on U.S. imports on Saturday in retaliation for President Donald Trump placing tariffs on the two countries.
Trump Will Hit Mexico, Canada and China With Tariffs
Jan 31, 2025, 10:04 AM
The White House press secretary said the president would move forward with levies on America’s largest trading partners on Saturday.
Stock market today: Dow, S&P 500, Nasdaq stumble as Trump recommits to sweeping tariffs on Saturday
Jan 31, 2025, 4:06 PM
Solid results from Apple are buoying spirits, as investors brace for PCE inflation and weigh Trump's renewed tariff threat.