Trump's Looming Tariffs: Markets and Global Partners on Edge
President Donald Trump's self-imposed deadline for tariff announcements looms, casting uncertainty over global markets and trade partners.
Potential Tariffs on Mexico and Canada
On Thursday, Trump reiterated threats to impose 25% tariffs on Mexico and Canada, potentially excluding oil imports. "We may or may not," said Trump, according to Reuters. "We're going to make that determination probably tonight."
China Tariffs Deadline
Trump has also threatened tariffs on China, with a deadline of February 1. The lack of clarity on specific actions has left businesses and global leaders in limbo.
Market Jitters and Business Concerns
Uncertainty surrounding tariffs has led to market volatility and concerns among businesses. Charles Schwab's Kevin Gordon highlights the recent trade war with Colombia as an example of the impact on business decisions.
Broad Tariffs Preferred by Commerce Secretary Nominee
Howard Lutnick, Trump's nominee for Commerce Secretary, supports broad, country-by-country tariffs, which he believes can protect American industries, including artificial intelligence (AI).
Economic Ramifications
Tariffs could have inflationary effects, potentially influencing the Federal Reserve's interest rate decisions.