In This Article:
President Trump announced he will be increasing the steel and aluminum tariffs levied against Canada from 25% to 50% now.
Slatestone Wealth chief market strategist and host of Yahoo Finance's Trader Talk, Kenny Polcari, joins Madison Mills in assessing this breaking news and how the stock market (^DJI, ^IXIC, ^GSPC) is reacting.
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
for breaking that down as always.
Some breaking news crossing the wire. President Trump saying he's increasing Canada's steel and aluminum tariff to 50% effective tomorrow. You can see stocks continuing their sell-off. The Nasdaq reversing its earlier gains. Now hovering below the flat line, the S&P is down about five tenths of a percent. I'm still with Kenny Polcari on set with me. And Kenny, just want to add so that you're aware here, he's talking about substantially increasing those tariffs on cars coming into the US on April 2nd as well. He talks about the need for Canada to immediately drop its anti-American tariff policy. So, this is a long, long-winded Truth Social post. What do you make of the market reaction?
So, I'm not surprised with the market reaction, right? It's just more uncertainty and it's more kind of chaos, right? Because he just he changes his mind on a whim, he puts it out there on Truth Social, and so the market interpreted, I'll go scrape, you know, scrape all the headlines, they react to these negative headlines, and so you get what you get in the market, right? So, I'm not surprised that the market's reacting like this. Look, there's been a lot of internal damage in the market over the last couple of weeks. And so, the market will continue to thrash around until there's more clarity. You're not going to get that until until we get more clarity.
Right. Is the clarity, this is my big question, is the clarity going to be enough to stop the selling because we've seen global selling of US stocks as well.
So I think clarity will be enough to stop selling once it settles down. Once everyone understands, okay, what's the focus? Is he going to change his mind is his mind every day? Then there's not going to be any clarity, right? Once there's clarity, once we start to see other nations come to the table and start to negotiate on trade, because look, there are countries that that hit us over the head with tariffs, right? Um, and we're getting to understand that now as we learn more about that. So, once that comes to the table and people really starting countries start negotiating, then I think it all settles down.
But what if the uncertainty is here to stay?
Well, uh listen, it's all there's always some level of uncertainty, right, that that that is in the markets. But I think it's these major issues, right? It's going to be the geopolitical issues, it's going to be the trade issues for sure. And so, once we get a little bit more clarity, and there'll always be uncertainty, but that doesn't mean it can't calm down.
