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Trump's New Pharma, Truck Tariffs: Terrible Or Toothless?

1. Mexico accounts for 82.31% of U.S. heavy-duty truck imports this year. 2. Trump announced 100% tariffs on pharmaceuticals and 25% on commercial trucks. 3. Carve-outs may negate the impact of tariffs on truck imports. 4. U.S. trade deficit with Mexico reached $112.59 billion through July. 5. Carved-out imports from USMCA may limit tariff damage to U.S. manufacturing.

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FAQ

Why Neutral?

The tariffs may initially cause market uncertainty, similar to previous trade tariff impacts. Historically, markets have stabilized after adjustments to trade policies.

How important is it?

The focus on tariffs can impact trade-dependent sectors within S&P 500, especially manufacturing. However, exemptions could mitigate overall impact.

Why Short Term?

Potential volatility will likely diminish as market reactions stabilize post-announcement, as seen in past tariff announcements.

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