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Economist: market reaction to Trump tariffs lukewarm

Economist: market reaction to Trump tariffs lukewarm

Bitget2025/03/04 15:50

The sell-off in financial markets caused by President Donald Trump's 25 per cent tariffs on Canada and Mexico has been relatively modest so far, says Derek Holt, an economist at Scotiabank. Reasons for this include traders having digested the risk of tariffs, the fact that at least Canada's retaliatory response has been less than that of the tariffs taken by the U.S., and the fact that it is unclear how long Trump will keep the tariffs in place.Holt argues that Trump imposed the tariffs ahead of his speech to members of Congress on Tuesday night local time, in an attempt to show progress on trade. He added that traders may believe that a deterioration in risk appetite could prompt Trump to change his stance, given how closely he is watching the performance of the stock market.

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