Trump Implements Tariffs on Major Trading Partners Amid Market Volatility
President Trump announced tariffs on major trading partners, causing market volatility. Key developments include:
- Tariffs originally set to take effect were delayed with Mexico for one month.
- S&P 500 and Nasdaq Composite futures fell sharply but recovered partially after the delay announcement.
- Bitcoin hit a 30-day low of just under $93,000 before rebounding to around $100,000.
- The Mexican peso rose by 1%, while the Canadian dollar also improved against the US dollar.
- Tariffs on Canada and China are still expected to commence as scheduled.
Analysts note that markets underestimated the risks associated with the tariffs. The latest ISM manufacturing index indicates growth, attributed potentially to pre-emptive stockpiling rather than genuine expansion. Concerns persist regarding potential higher costs for manufacturers due to increased raw material prices and retaliatory tariffs.