Live: Trump says tariffs on Mexico paused for a month; Canada, China duties set to take effect Tuesday
Published On Feb 3, 2025, 12:06 PM
President Donald Trump has announced new tariffs on imports from Canada (25%), Mexico (25%), and China (10%), with duties on Canadian oil being slightly lower at 10%. Trump has signaled a delay on tariffs against Mexico for one month following conversations with the Mexican president. The tariffs could spark retaliatory measures from affected countries, potentially leading to increased inflation and influencing future Federal Reserve interest rate decisions. Markets reacted negatively at the announcement, with major futures declining significantly, indicating investor concerns about the potential economic impact of these tariffs.
Stock Forecasts
SPY
Negative
The imposition of tariffs is expected to create volatility in the market as investors adjust to the potential ripple effects on inflation and trade relations, particularly with key partners. Tariffs may prompt retaliatory measures from Canada and Mexico, which could further strain trade dynamics and market stability, likely exacerbating market tensions.
XLF
Negative
Investors concerned about inflationary pressures due to the recently introduced tariffs may lead to a decline in consumer spending, impacting corporate profits in the long run. The uptrend in oil prices and the potential for wider economic repercussions could weigh heavily on financial markets.
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