Trump's Tariff Threat: A Looming Economic Storm?

Investors face potential U.S. market volatility as President Trump threatens tariffs on Canada, Mexico, and China. Analysts warn of impacts on corporate profits and inflation. The tariffs aim to address illegal immigration and opioid imports, but could also be negotiation tactics for better trade deals.

Investors are preparing for possible disruptions in the U.S. market as President Trump plans to impose tariffs on major trading partners Canada, Mexico, and China. Analysts express concerns over potential negative impacts on corporate profits and inflation.

The tariffs target illegal immigration and opioid trafficking, but there is speculation they may serve as leverage for trade negotiations. The administration's final decision remains uncertain, adding to market volatility.

Experts predict corporate earnings might suffer a 2.8% hit, coupled with potential inflation risks that could influence Federal Reserve policies. Markets are bracing for significant shifts pending Trump's official announcement, with discussions ongoing about the strategic use of tariffs.

(With inputs from agencies.)