Stock markets see sluggish opening as Wall Street reacts to Trump’s new tariffs on Mexico and Canada

A general reorientation away from the U.S. will take place now no matter what. EU will try getting Mercosur completed and perhaps on getting free trade deals in the future with Canada and Mexico."

Klaus Adam, Professor of Economics at University College London told Newsweek

Claudia Sheinbaumpresident

United States [needs] to do its job in the U.S., to make the arrests that need to be made in order to halt the trafficking of drugs in its own country."

Mexican President Claudia Sheinbaum

I see no chance of U.S. manufacturing benefiting. Short-term there will be enormous costs from relocation & supply chain interruptions. In the long-term, tariffs reduce competitive pressure, which is generally not a recipe for success (except perhaps for infant industries).

Klaus Adam, Professor of Economics at University College London told Newsweek

Justin Trudeauprime Minister

Because of the tariffs imposed by the U.S, Americans will pay more for groceries, gas, and cars, and potentially lose thousands of jobs. Tariffs will disrupt an incredibly successful trading relationship. They will violate the very trade agreement that was negotiated by President Trump in his last term."

Canadian PM Justin Trudeau

President Donald J. Trump is proceeding with implementing tariffs on Canada and Mexico under the International Emergency Economic Powers Act (IEEPA) to combat the extraordinary threat to U.S. national security, including our public health posed by unchecked drug trafficking … President Trump continues to demonstrate his commitment to ensuring U.S. trade policy serves the national interest."

The White House

Just so you understand, vast amounts of fentanyl have poured into our country from Mexico, and as you know also from China ... it comes in from Canada, and it comes in from Mexico, and that's a very important thing to say,

Trump continued

Claudia Sheinbaumpresident

There is no motive or reason, nor justification that supports this decision that will affect our people and our nations,

Mexico’s President Claudia Sheinbaum said Tuesday, the Associated Press first reported

Our tariffs will remain in place until the U.S. trade action is withdrawn, and should U.S. tariffs not cease, we are in active and ongoing discussions with provinces and territories to pursue several non-tariff measures,

he said

Another market crash - WTF is going on in America?”

One comment, posting on the ETF sub-Reddit, said

How does it affect the stock market, as we can see Trump is launching trade wars with everyone worldwide. That can never be a good sign for the economy as a whole... It really raises reasonable concerns about how the stock market is going to react in the next four years.”

Another asked

With the current volatility in the US markets because of all the craziness going on would it be better to invest in foreign funds until the craziness calms down?”

Another said

It is difficult for markets to get on with aggressive positioning given the risk of U.S. tariff policies turning on a dime."

Chang Wei Liang, a currency and credit strategist at DBS, said

I don't think China will buy any more U.S. farm products. The orders will go to South America. I think all in all, it's a lose-lose situation. Nobody gains anything."

Francis Lun, CEO of Geo Securities in Hong Kong, said

I'm spending a lot of time talking to CEOs who are really trying to understand the consequence of some of this...I think we're going to live with a slightly higher level of volatility."

David Solomon, Goldman Sachs CEO, speaking at a conference in Australia, said

Justin Trudeauprime Minister

Canada will not let this unjustified decision go unanswered,

Canada's Prime Minister Justin Trudeau condemned the tariffs, stating

At the moment, with 20 per cent, it just barely moves the needle for companies wanting to move potential supply chains out of the country,

he added

In the upcoming National People's Congress, Chinese policymakers could provide more pro-growth measures including announcing a larger budget deficit target and maintaining a five percent growth target for this year,

said MUFG Bank's Lloyd Chan

We're kind of going into a brave new world here of tariffs on several countries, and it's just really hard to determine two things: the reaction of the U.S. consumer to tariffs, and the earnings and results of companies that will be affected by the tariffs,

said Peter Tuz, president of Chase Investment Counsel

Right now, the market still views tariffs as more of a negotiating tool and not as a long-term strategy,

said Chuck Carlson, CEO of Horizon Investment Services

If some of these tariffs stick...it would create some headwinds for the economy that the stock market probably would not like,

said Scott Wren, senior global market strategist at the Wells Fargo Investment Institute