Trump's return to White House brings market volatility due to potential tariffs

From Investing.com: 2025-01-21 02:26:52

Financial markets reacted to the beginning of Donald Trump’s second U.S. presidency, swaying as he made a softer start on China but then signaled tariffs on Mexico and Canada. The dollar hit five-year highs against the Canadian dollar. Investors feel more at ease, but volatility is expected due to looming tariffs.

Trump enters office with an ambitious agenda that could boost U.S. corporate profits but reignite inflation and raise interest rates. He pledged to support the oil, gas, and power industries and crack down on immigration. Battery stocks in South Korea fell after he revoked an order favoring electric vehicles. Cryptocurrency markets felt pressure.

During Trump’s first term, the S&P 500 rose nearly 68% but saw bouts of volatility due to a trade war with China. Investors are curious about how Trump will lower inflation and interest rates. The dollar hit five-year highs against the Canadian dollar, and treasuries rallied. Markets are bracing for potential tariffs.



Read more at Investing.com: Markets wary as Trump returns to the White House By Reuters