Quote:
Originally Posted by butterfly
Those are intraday numbers and the variance isn't all that special. The tariff imposition was already priced in when Trump started crowing about it in November. When the Mexican news came out it was unexpected and led to loss mitigation. Nothing really newsworthy about the whole thing.
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lol, you can spin this however you want, but the reality is that Trump cares about the stock market. He loves a scoreboard and I have no doubt he say the chaos these tariffs were going to cause and he found a way to save face and back out. You might not think that this was a significant move in value, and that’s fine, but keep in mind those tariffs never came into force. The real damage the tariffs do economically is over the long term, and these had a significant impact without even being levied.
And no, there was almost no impact on the markets November 25/26. He threw out the tariffs and people noticed, but assumed it was a negotiation ploy. Even last week, the TSX rose right up until late in the Friday session, likely because no one thought the tariffs were coming in. When Trump actually announced them Saturday was the first time people thought it was serious. But even this morning, pre-market there were rumblings that he might back down.
Anyway, my opinion is that other than Canadian energy (where it was accounted for), this wasn’t priced in, and surely not in the US. Traders were far too sanguine about this issue, given how far your glorious leader pushed this before caring this time around. It will be interesting to see how they react in 30 days.