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Markets on Edge as Trump’s Tariff Threats Loom Over Mexico and Canada

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Image credit: Nick Chong

Global markets remain tense as US President Donald Trump reaffirmed that 25% tariffs on Mexico and Canada remain under consideration, with a final decision expected by March 3.

📉 Market Impact

  • Investors haven't fully priced in the risks, but currency markets could react more strongly as the deadline approaches.
  • The USD/CAD and USD/MXN currency pairs may face near-term upside risks if tariffs move forward.

📊 Economic Data in Focus

  • US Consumer Confidence Report (Conference Board) is expected to decline from 104.1 to 102.5—a drop below 100 could trigger a stronger market reaction.
  • Richmond Fed indices will provide further insights into economic momentum, following weaker-than-expected Fed activity readings from Chicago and Dallas.

📈 Dollar Strength Amid Trade Uncertainty

  • ING strategists suggest Trump is likely using tariff threats for negotiating leverage, similar to February's delay.
  • Markets are still only modestly pricing in the risk of full implementation.

Tracking Market Trends & Economic Risks

🔹 Sector P/E Ratio API - Analyze valuation shifts across industries amid tariff uncertainty.
🔹 Full Financials API - Track company financial health in response to macroeconomic risks.

With tariff tensions, economic data, and forex volatility in play, markets are poised for potential sharp movements in the coming days.

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