Markets are ignoring risks posed by new tariffs set by President Donald Trump to take effect on August 1, which experts view as negotiating tactics. Current tariff rates exceed previous levels, creating uncertainty. Despite the potential for tariffs to negatively impact stocks as seen earlier in the year, markets continue to reach all-time highs. Investors have adapted to the variable nature of tariff announcements and expect a stable trade policy, leading to resilience in market performance.
Investors are willing to look through the risks of President Donald Trump's new batch of tariffs set to take effect on Aug. 1 because they just see them as negotiating tactics, experts say.
Current tariff rates are more than six times where they were at the start of the year.
Markets are largely ignoring the possibility a new round of tariffs could tank stocks like they did in April.
There are risks that reciprocal tariffs with major trading partners could revert back to at or around the April 2 levels, which could be a headwind for markets.
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