From Yahoo Finance: 2025-03-27 17:02:00

Global markets reacted defensively on Thursday as President Trump announced plans to impose aggressive tariffs on auto imports. Gold surged to a new high amidst inflation concerns, while Treasury bond yields rose. Despite the tariff news, currencies of heavily impacted countries showed surprising resilience. Uncertainty surrounding the auto tariffs is keeping investors cautious as corporate earnings projections are lowered. The impact of the tariffs on the U.S. economy remains to be seen.

While the auto industry faces uncertainty, the currencies of countries targeted by Trump’s tariffs remained strong. The U.S. plans to impose a 25% tariff on imported vehicles, affecting countries like Mexico, Japan, Korea, Canada, and Germany. Equity markets reacted, with companies like Hyundai and German auto shares seeing declines. However, the FX market had a mixed reaction, with some currencies strengthening against the dollar. The long-term impact on these economies remains uncertain.

President Trump’s protectionist trade agenda is impacting market sentiment and consumer confidence. Tariffs on auto imports could significantly raise prices, affecting U.S. consumers. Overseas investors are reevaluating U.S. assets due to the trade war, leading to a weaker dollar. While auto-exporting countries’ currencies are affected, the U.S. dollar may bear the brunt of the tariffs’ impact. Market movements will be closely watched tomorrow, including inflation data from Japan, the U.S., and the UK.



Read more at Yahoo Finance: Investors find auto motive for caution