US Autos, Homebuilders, Materials Take Hits as Trump Trade War Kicks Off
Shares of U.S. companies have come under pressure from the latest escalation in Washington's trade war, with the newest tariffs on Canada and Mexico expected to hit earnings in several sectors, including automakers, retailers and raw materials. President Donald Trump imposed 25% tariffs on imports from Mexico and Canada, effective Tuesday, while also doubling duties on Chinese imports to 20%. The cumulative duty comes on top of up to 25% tariffs imposed during his first term.
- As the trade war intensifies, it may become increasingly challenging for companies like General Motors and Ford to maintain their profit margins in the face of rising costs from tariffs and supply chain disruptions.
- How will this shift in trade policies affect the overall competitiveness of U.S. industries in the global market, particularly in sectors such as manufacturing and technology?