Trump tariff live updates: Lutnick says Trump could ease tariffs on Canada, Mexico as Trump backs trade moves

Given that significant tariffs are expected to raise prices for consumers and put pressure on corporate profits, especially in the retail and manufacturing sectors, companies heavily reliant on imports may face declining valuations. Consumer spending could also decline due to higher costs of living, impacting broader market sentiment.

The retaliatory measures from Canada and China may lead to increased inflationary pressures across sectors, particularly in consumer goods. If these tensions continue, overall market volatility may rise, adversely affecting companies with significant reliance on international trade.

Higher tariffs on imports may lead companies to adjust supply chains, which can impact short-term profits but could also create opportunities for domestic producers if they can fill the gaps left by higher import costs. However, the overall outlook remains negative as the trade war escalates.