Lately all I am posting is about Trump I hope those kind of news will stop soon.
The week started with Donald Trump doing what most investors feared but few believed he would dare. He officially announced and implemented 25% tariffs on ALL products imported from Canada and Mexico. And as if that weren’t enough, he also doubled tariffs on Chinese products—from the 10% he had announced in February to 20%.
With a single move, he set three of the U.S.’s biggest trade partners—and the global markets—on fire.
At the same time, he justified these tariffs by claiming they were a measure against the trafficking of fentanyl, which, according to him, is flowing uncontrollably across the borders of Mexico and Canada.
However, the real reason is obvious. Trump wants to force major corporations to bring their production back to the U.S. As he put it, “Want to avoid tariffs? Build your factories here.”
RETALIATION
Of course, no one took this lying down.
Canadian Prime Minister Justin Trudeau immediately announced 25% tariffs on $30 billion CAD worth of American products. And to make things even clearer, he stated that in 21 days, additional tariffs would follow on another $125 billion worth of goods.
But he didn’t stop there. Canada also announced a special 25% tax on electricity exports to states like Michigan and New York, even threatening to cut off exports entirely if Trump escalates further and to reserve its critical minerals for other countries.
Trudeau went as far as to accuse Trump of trying to cripple Canada’s economy to make it vulnerable to a future… annexation!
Meanwhile, Mexico announced that starting Sunday, it, too, would impose retaliatory tariffs on American products.
And of course, China wouldn’t miss out on the action. It announced new tariffs of up to 15% on U.S. agricultural products like soybeans and corn, along with restrictions on exports to 15 American companies.
In fact, Canada and China are fully coordinating their moves, making it clear that this trade war won’t end anytime soon.
THE TRUMP PUMP IS GONE
Unsurprisingly, all these developments sent markets into a panic.
The S&P 500 didn’t just fall—it erased ALL the gains it had made since the elections.
The famous “Trump pump” turned into a “Trump dump.” The index even dropped below its election-day level and is now in the red for 2025.
The auto industry is also caught in the storm, with S&P Global Mobility predicting that production will shrink by 20,000 vehicles per day!
Posted Using INLEO
