Markets shrug off Trump's 25% tariff threat on Canada, Mexico
Stock futures (YM=F, ES=F, NQ=F) are climbing following President Donald Trump's announcement of planned 25% tariffs targeting Canada and Mexico. NYSE senior market strategist Michael Reinking joins Morning Brief to examine the market reaction. Reinking notes "mixed messaging" around the tariffs, with market participants having expected more "widespread" tariff implementation. He highlights an unusual pattern in the automotive sector: Stocks are moving higher despite potentially being most vulnerable to the proposed tariffs. "There's a mixed response," he explains. "It tends to lead to the idea that markets don't necessarily believe the 25% numbers, and they're kind of discounting a lot of that." In Reinking's assessment, markets are currently behaving as if the tariffs are "being used as a negotiation tool." However, he warns, "The risk is that they're actually implemented," highlighting potential consequences like rising inflation that could ripple through the markets. Watch the full video above for Reinking's complete analysis of how Trump's policies may influence market dynamics ahead. To watch more expert insights and analysis on the latest market action, check out more Morning Brief here. This post was written by Angel Smith
