It was anything but a quiet weekend in Washington, D.C…
On Saturday, President Donald Trump signed multiple executive orders that placed tariffs on Canada, Mexico, and China. Starting Tuesday, these new orders will impose 25% tariffs on Canada and Mexico, and an additional 10% tariffs on China.
This move was no huge surprise. Trump has been talking about this for months. (Note: This story is evolving – Trump has already paused Mexico’s tariffs for a month.)
In response to Trump’s plan, Canada said it will place 25% tariffs on about $107 billion worth of goods from the U.S. China vowed to retaliate as well.
Now the question is, how long will the tariffs last? And what type of deal can be worked out between all parties involved?
Most folks on Wall Street don’t think the tariffs will be a long-term situation. And I agree. It’s more likely that some type of deal will be reached in the coming days or weeks.
As you can see in the chart below, many large U.S. corporations are talking about tariffs right now.
Again, that’s no surprise. They’re obviously a concern to U.S. companies. Sustained tariffs on the country’s three largest trade partners could lead to everything from inflation to disrupted supply chains.
Here’s another chart to consider. Essentially, if the Trump tariffs stay in place, the effective tariff rate could move to a level we haven’t seen since the 1940s – and possibly as far back as 1900.
I don’t have to tell you that this could have a major effect on the economy, the stock market, and your personal finances.
So in today’s video update, I’ll dive into more of the specifics of these tariffs and discuss how it will affect you and the stock market.
Be sure to tune in for all the details.
Here’s to the future,
Matt McCallEditor, Market Insights
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