One Response to Trump’s Tariffs: Trade That Excludes the U.S.
Published On Feb 3, 2025, 5:01 AM
In response to the Trump administration's increasing trade barriers, including substantial tariffs on Mexico, Canada, and China, various countries, even U.S. allies, are forming their own trade agreements. The European Union has notably concluded multiple trade deals with South American countries, Mexico, Switzerland, and has reignited discussions with Malaysia. Trump's tariffs could lead to significant retaliation and escalate into a trade war, which might further isolate the U.S. economically while other nations form stronger collaborative trade relationships.
Stock Forecasts
SPY
Negative
The ongoing trade tensions and new tariffs could negatively impact U.S. economic growth, leading to volatility in markets sensitive to trade. Companies that rely heavily on exports or import materials from these countries may see declining profits.
EFA
Positive
On the other hand, countries and companies within the European Union and those involved in new trade deals could benefit from reduced competition with the U.S., potentially leading to an increase in trade volumes and economic growth in those regions.
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