Donald Trump tariffs: Opening salvos fired in trade war - what comes next?
Published On Feb 4, 2025, 10:05 AM
Donald Trump has initiated a trade war by imposing a 10% tariff on all goods imported from China, while also threatening tariffs against Canada and Mexico. China plans to retaliate with its own tariffs on U.S. imports. This escalation of trade tensions could deter business investment and disrupt established supply chains, especially in the automotive sector which relies on cross-border trade in North America. The overall atmosphere of uncertainty may negatively impact economic growth and confidence in global markets.
Stock Forecasts
GM
Negative
In light of the ongoing trade tensions, particularly with tariffs being imposed on imports from China and the potential for further trade wars, companies dependent on international supply chains may face disruptions and increased costs, leading to potential declines in their stock prices.
VNM
Positive
As multinational companies look to mitigate their exposure to tariffs by shifting production away from China, companies in countries like Vietnam may experience increased investment and growth opportunities from U.S. firms seeking tariff-free manufacturing. This could provide upward momentum for related stocks or ETFs focusing on that region.
Related News
Live: Trump tariffs on Canada, Mexico paused for a month, China duties set to take effect Tuesday
Feb 3, 2025, 5:30 PM
Yahoo Finance will chronicle the latest news and updates on Trump's tariffs — from the threats to the eventual policy.
Auto stocks slip on fears Trump tariffs will harm industry
Feb 3, 2025, 1:57 PM
Automaker stocks tumbled on Monday following impending imposition of President Trump’s tariffs on goods coming from Canada and Mexico.
After Tariff Fight With Canada and Mexico, Trump’s Next Target Is Europe
Feb 3, 2025, 3:12 PM
The president’s threats to slap duties on goods imported from the European Union are part of a pattern of directing the harshest penalties at the United States’ closest allies.