Live: Trump resumes tariff threats on Canada, Mexico next month with steel, aluminum duties also weeks away

Published On Feb 24, 2025, 4:54 PM

President Donald Trump is escalating his trade policy by threatening to impose new tariffs, including a 25% tariff on imports from Canada, Mexico, and the auto industry. These potential tariffs could increase inflationary pressures and influence Federal Reserve interest rate decisions. Additionally, businesses are already feeling the effects of existing tariffs, with reports of declining business activity and consumer sentiment. Companies like Walmart voice concerns over possible price increases for consumers, particularly on electronics. Trump's aggressive tariff strategy aims to reshape trade relations and bolster domestic manufacturing but may lead to higher consumer prices and economic uncertainty.

Stock Forecasts

WMT

Negative

Due to the ongoing tariff threats and potential economic repercussions, companies closely tied to manufacturing and importing goods may see negative impacts on their stock prices. Walmart, for instance, is acknowledging the possibility of raising prices due to tariffs, which could lead to decreased consumer spending. The retail sector, particularly companies reliant on imported goods, such as electronics and vehicles, may face headwinds.

GM

Negative

Given the consumer sentiment decline and forecasted effects of tariffs on manufacturing, companies like General Motors need to consider the implications of permanent tariffs, which could threaten their domestic operations and investment plans. As their CFO indicated, this could eventually lead to stock price volatility as investors react to these risks.

AAPL

Positive

Apple's recent announcement of a $500 billion investment in the US may serve as a stabilizing factor amidst the tariff chaos, suggesting a positive long-term outlook for the company as it navigates these trade tensions. However, the broader implications of tariffs could still weigh on tech stocks sensitive to international trade.

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