Trump Refocuses on Tariffs and Trade Deals With Russia and Ukraine

Published On Feb 25, 2025, 7:32 AM

President Trump is set to implement new tariffs on imports from Mexico and Canada, in addition to tariffs on aluminum and steel beginning in April. The S&P 500 has dropped to its lowest level since his inauguration due to investor jitters regarding these tariffs. Trump is also negotiating access to natural resources in Ukraine as part of ongoing discussions about the Russia-Ukraine conflict, although uncertainty remains regarding U.S. security guarantees for Ukraine.

Stock Forecasts

SPY

Negative

With the impending tariffs raising costs for U.S. consumers and businesses, while also stirring concern in the stock market, investors may want to look at sectors that could be negatively impacted, such as manufacturing and consumer goods.

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A new report by Moody's Analytics found that the top 10% of American households in terms of income earned are driving nearly half of all U.S. consumer spending.

SPY
LUX

Tariffs and governmental uncertainty have been at the forefront of investors' minds. But while they may be factors, they may also be covering up for something a little more basic — and just as powerful.

Investors are still optimistic that Trump's moves later this year will offset the negative impacts of tariffs and Elon Musk's chainsaw.