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Economist: Market Response to Trump's Tariffs is Lukewarm

3 hours ago

On March 4th, Derek Holt, an economist at the Canadian Imperial Bank of Commerce, stated that thus far, the sell-off in the financial market triggered by U.S. President Trump's imposition of a 25% tariff on Canada and Mexico has been relatively moderate. The reasons encompass that traders have already assimilated the tariff risk. At least, Canada's retaliatory response is less than what the U.S. has implemented. Additionally, it remains uncertain how long Trump will sustain the tariff. Holt believes that Trump imposed the tariff prior to his speech to Congress members on Tuesday evening in order to demonstrate progress on the trade front. He further added that given Trump's keen attention to the stock market performance, traders might think that a decline in risk appetite could prompt Trump to alter his stance. (FX678)
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