CIO says he would be ‘surprised’ if the tariffs remain in place

HISTORY: Investors support a threatening hit to the US corporate surplus and pressure on inflation as Trump is doing well on his customs threats, with markets considered not fully taking into account the risks of higher taxes on foreign imports.

Trump promises to impose tariffs on Customs on Saturday in Canada, Mexico and China.

As the duty deadline is approaching, investors have tried to measure whether the potential tasks of imports can be a negotiating tool as Trump and members of his administration have dealt with the topic over the past week.

“The most immediate effect of this would be increased costs for goods, not surprising,” McMillan said. “So the consequences from there can result in a downturn in America, you know, in a kind of US economy.”

“It would be a meaningful increase, a potential increase in the cost of goods sold. So this is one of the reasons I tend to believe that you know the administration is probably using this more as a negotiating tactics and less like something they intend to leave in place for, you know someone longer.