economic commentary
March 31, 2025 - Trump Tariff Threats Rattle Financial Markets
U.S. President Trump rattled global financial markets in early February as he announced that tariffs would be applied to Canada and Mexico as a result of the perceived fentanyl crisis of drugs entering into the U.S. By stating that it was a national emergency, he was able to avoid congressional approval in order to implement his tariff plan. In addition, 20% tariffs were also going to be applied to all Chinese goods entering the U.S. Additional measures were announced and eventually delayed, causing extreme volatility in global financial markets. April 2 was deemed Liberation Day by President Trump when he would announce his reciprocal tariff plan. This plan implemented higher-than-expected tariffs on many countries around the world, with tariffs of at least 10% across the board, with several countries at much higher levels. The announced tariffs on Canada and Mexico were lower than expected, however, the existing onerous tariffs are still in place, leading to uncertain economic conditions going forward. The initial market reaction was negative as equity markets around the world plunged dramatically .
