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Benzinga
168 days

Markets See 'Hardly A Flesh Wound' So Far, But Century's Biggest Trade War Looms, Says Bob Elliott

1. New tariffs of 25% on Canada and Mexico implemented today. 2. Estimates suggest $160 billion added costs for U.S. consumers and businesses. 3. Current tariff levels are highest since the 1960s, with more to come. 4. Retaliation from partners might significantly impact U.S. manufacturing GDP. 5. Market resilience could change as full tariff impacts unfold.

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FAQ

Why Bearish?

Increased tariffs could reduce consumer spending, affecting overall S&P 500 growth. Historically, trade tensions linked to market downturns.

How important is it?

Significant economic implications from tariffs may lead to reduced earnings and lower stock prices, directly impacting the S&P 500.

Why Long Term?

As trade conditions worsen, market impacts will manifest more significantly over time. Previous trade wars have caused prolonged economic uncertainty.

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