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Stocks (^GSPC, ^IXIC, ^DJI) initially sank at Monday's session open after President Donald Trump’s tariff announcement on China, Mexico, and Canada, though losses were pared back when he delayed tariffs on Mexico for at least a month. Earlier today, Mexico's President Claudia Sheinbaum announced the tariffs on imports from the country have been delayed until March 1.
Rob Arnott, founder and chairman of Research Affiliates, joins Market Domination to emphasize that tariffs are a real threat, not just a negotiation tool.
“The notion that these won’t go into effect because it’s just a bullying tool is utterly naive,” Arnott says. He explains that while economists often create long-term models around the economic impacts, tariffs may only last for short periods, making their effect difficult to predict.
Arnott also notes that market volatility is a natural response to major geopolitical events: "Markets are always volatile. Whenever there's news, geopolitical news or geo-economic news — especially big scale that can affect global trade — the markets are going to get choppy. That's totally normal."
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This post was written by Josh Lynch