US President Donald Trump’s 25% tariffs on Canada and Mexico, along with an additional 10% tariff on China, are now in effect. This move has led to retaliatory measures from Canada and China, while Mexico plans to respond by Sunday.
The impact of the tariffs is expected to be felt globally, particularly among businesses that rely heavily on international trade. Shipping and retail leaders have expressed concerns about potential price increases due to the tariffs, which could lead to “stagflation” in the US economy.
Market investors are also bracing themselves for a downturn, with major US benchmarks slumping in value. The S&P 500 has lost 1.22% of its value, while technology stocks have underperformed since Trump’s inauguration.
The “Trump bump” that boosted markets after his election victory is now gone. Analysts point to Europe as a more stable destination for equity investors due to its lower valuations and less political risk.
Meanwhile, South Korean shares in the K-pop sector are bucking the trend of economic uncertainty, with gains of up to 33% this year. The sector remains insulated from US tariffs, making it an attractive option for investors.
Source: https://www.cnbc.com/2025/03/05/cnbc-daily-open-tariff-trigger-sell-off-ignite-stagflation-worries.html