President Trump's Trade War Is On. Here are 3 Things Every Investor Should Do.
After two years of double-digit gains, the S&P 500 (SNPINDEX: ^GSPC) lost its momentum -- at least temporarily -- in recent days. The index has slipped more than 4% over the past two weeks due to concerns about the tariffs President Donald Trump has placed on imports from China, Mexico, and Canada. These tariffs -- 25% on goods from Mexico and Canada and 20% on goods from China -- went into effect earlier this week.The White House later put into place a one-month delay on tariffs for automakers complying with the United States-Mexico-Canada agreement's trade rules. Any such flexibility could reduce some of the negative impact on companies, and the market is likely to be on the lookout for more such moves or flexibility from the Trump administration.Still, economists have warned that the tariffs rolled out as planned could push prices higher and support the case for a longer period of high interest rates. That sort of situation could weigh on costs of companies that manufacture goods abroad and hurt sales of those that rely on imports.Continue reading
After two years of double-digit gains, the S&P 500 (SNPINDEX: ^GSPC) lost its momentum -- at least temporarily -- in recent days. The index has slipped more than 4% over the past two weeks due to concerns about the tariffs President Donald Trump has placed on imports from China, Mexico, and Canada. These tariffs -- 25% on goods from Mexico and Canada and 20% on goods from China -- went into effect earlier this week.
The White House later put into place a one-month delay on tariffs for automakers complying with the United States-Mexico-Canada agreement's trade rules. Any such flexibility could reduce some of the negative impact on companies, and the market is likely to be on the lookout for more such moves or flexibility from the Trump administration.
Still, economists have warned that the tariffs rolled out as planned could push prices higher and support the case for a longer period of high interest rates. That sort of situation could weigh on costs of companies that manufacture goods abroad and hurt sales of those that rely on imports.
