Trump tariffs: China's tit-for-tat levies on US set to take effect

The elevated trade tensions between the U.S. and China, especially with the introduction of new tariffs and China's retaliatory measures, may negatively impact sectors involved in international trade and broader markets. The energy sector, particularly for companies involved in coal and natural gas, could see increased pressure as tariffs affect profitability. Furthermore, technology and automotive sectors, which are already facing scrutiny and regulatory challenges, may also witness stock downturns.

As companies adjust to new tariffs, U.S. electric vehicle manufacturers could have a positive outlook due to tariff-induced preferences for domestic production. Increased domestic focus could spark investment in U.S.-made vehicles, benefitting companies like Tesla. Amidst rising tariffs on imports, domestic manufacturers may see increased demand as consumers look away from imported vehicles.