March 2025 The new Trump Administration has come out of the gate swinging with a myriad of geopolitical, domestic, and foreign trade proposals and executive orders that have reverberated across markets, supplemented with mixed, albeit softer, economic data readings. One of the more impactful policy proposals is Trump’s intention to impose tariffs on trade partners. While this is not a surprise—since tariffs were a key tenant of his campaign—it was less clear whether they would primarily be used as a negotiation tool or as an intended source of financing. The proposed 25% tariffs on Mexico and Canada sent shockwaves through markets when first announced, but they almost immediately saw a one-month stay as the United States’ neighbors to the north and south implemented concessions. After a month of uncertainty, it is now clear these tariffs will go into effect, which will have meaningful short-term impacts on supply chain activity and the potential for longer-term shifts if they remain in place for an extended period. Retaliatory tariffs will also contribute to market volatility and should be monitored... |
Metrics That Matter March 2025
