President Donald Trump’s newly announced tariffs on Canada, Mexico, and China have introduced fresh concerns for markets, yet they are not an immediate bearish signal for the S&P 500, according to the Sevens Report.
Key Highlights:
25% import tariffs on Canada and Mexico, 10% on China were introduced over the weekend.
The stated reason: pressuring these nations to curb illegal fentanyl shipments.
Analysts speculate that the move could be a negotiating tactic ahead of the USMCA trade deal review in 2026.
Equity exposure remains intact, as earnings and economic growth are still stable.
However, DeepSeek’s AI breakthrough and higher tariffs could collectively create the perfect storm for a market pullback.
A key question remains: Will these tariffs hold, or are they just leverage in trade negotiations?
How Will This Impact Stocks?
The S&P 500 has shown resilience despite AI-related volatility, but these tariffs could undermine strength in multiple sectors.
For data-driven insights on market trends, check out:
Earnings Calendar – Stay updated on upcoming earnings reports.
Sector P/E Ratio – Assess valuations across industries to identify potential risks.
With tariff uncertainty, AI-driven volatility, and elevated stock valuations, investors should brace for a potential market correction in the coming months.