The US stock market has been negatively impacted by Trump’s ongoing tariff wars with Canada, Mexico, and China
Donald Trump’s plans to double tariffs on certain Canadian goods has already backfired on him.
Trump Escalates Trade War: Markets React as Canada Faces Hefty Tariff Hike
Donald Trump is turning up the heat in his ongoing tariff war with Canada, Mexico, and China—and Canada is bearing the brunt of his latest move.
What started as a 25% tariff on Canadian imports has now doubled to 50% on steel and aluminum, set to take effect tomorrow. Announcing the decision on Truth Social, Trump declared:
“I have instructed my Secretary of Commerce to add an ADDITIONAL 25% Tariff, to 50%, on all STEEL and ALUMINUM COMING INTO THE UNITED STATES FROM CANADA, ONE OF THE HIGHEST TARIFFING NATIONS ANYWHERE IN THE WORLD.”
The financial markets did not take the news well. Within hours, the Dow Jones Industrial Average plunged 600 points, while the S&P 500 slid 0.6%, as investors scrambled to assess the fallout.
Market Experts Sound the Alarm
Wall Street analysts warn that the uncertainty surrounding Trump’s aggressive trade policies is creating major instability.
Art Hogan, chief market strategist at B. Riley Wealth, told CBS MoneyWatch:
**“The market has been down for three weeks in a row, largely driven by uncertainty about where trade policy lands—full stop.
“We’ve been inundated with tariff announcements that, unlike the 2018 playbook, are now being applied across the board instead of with a more targeted approach. Until we have clarity on trade and tariffs, this uncertainty will continue to weigh on markets.”
What’s Next?
With global trade tensions rising and U.S. markets in turmoil, the big question remains: how much further will Trump go—and at what cost?
Goldman Sachs Slashes Growth Forecast as Recession Fears Mount
Economic uncertainty is deepening as Goldman Sachs revises its U.S. growth forecast for the year, lowering expectations from 2.2% to 1.7%. Meanwhile, recession warnings are gaining traction, with experts calling the situation a threat that “cannot be ignored.”
The investment bank has also raised the likelihood of a U.S. recession to 20%, citing the White House’s ability to reverse policy changes if economic risks escalate further.
Experts Raise the Alarm
Olu Sonola, head of U.S. regional economics at Fitch Ratings, made it clear in an interview with ABC News:
“The threat of a recession is real. It’s a threat you cannot ignore.”
Meanwhile, Moody’s Analytics is even more cautious, putting the risk of a recession at 35% as of yesterday.
Mark Zandi, chief economist at Moody’s Analytics, called this figure “uncomfortably high”, warning that the risk is only increasing—largely due to the unpredictability of Trump’s shifting economic policies.
What’s Next?
With economic growth projections dimming and market uncertainty rising, all eyes are on the White House to see whether policy adjustments will be made—or if the risk of recession will continue climbing.
