President Donald Trump’s fresh trade war rhetoric may be stirring up global leaders, but investors remain calm and focused on the bottom line. Despite a series of recent letters threatening new tariff rates, stocks continued to rise on Wednesday, with major indices like the S&P 500, Dow, and Nasdaq climbing higher.
Tech giants Nvidia, Microsoft, and Alphabet led the gains, while the US economy remains surprisingly resilient under Trump’s economic policies. Analysts at ING note that Trump’s “take-it-or-leave-it” offer in his letters may be seen as a tactic to extend the tariff deadline rather than an actual policy change.
Other experts like Paul Donovan at UBS Global Wealth Management and Goldman Sachs share similar views, suggesting that investors are not swayed by Trump’s social media posts. The companies expect more US consumer taxes in the near future and see little likelihood of the proposed tariffs taking effect on August 1.
As for the countries targeted by new tariffs, most reflect rates proposed earlier this year, with Laos and Burma facing the highest levy at 40%. However, the Philippines will receive the lowest tariff rate of 20%. The market seems to be shrugging off Trump’s latest trade war rhetoric, prioritizing economic fundamentals over politics.
Source: https://www.foxbusiness.com/politics/wall-street-shrugs-off-trumps-fresh-trade-war-rhetoric-investors-holding-firm