Where Trump’s Trade Fight Could Go Next
Published On Feb 4, 2025, 7:40 AM
The United States has officially entered a new trade battle with China, exchanging tariffs that are likely to increase prices on a variety of goods. President Trump is also threatening to extend this trade conflict to the European Union, raising uncertainty among investors and business leaders. Recent news indicates that while Canada and Mexico have secured exemptions from certain tariffs, the broader situation with China remains volatile, jeopardizing sectors like energy and technology.
Stock Forecasts
SPY
Negative
With the ongoing trade tensions, companies exposed to tariffs, particularly in technology and energy, may face potential earnings pressure. Conversely, investors in sectors less affected or those involved in domestic production might thrive. As trade wars typically lead to market volatility, stock response can skew negatively for multinational companies.
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