Washington, D.C. – President Donald Trump announced an extension of the tariff pause to include goods from Canada and Mexico, under the conditions specified in the United States-Mexico-Canada Agreement. The move came on the heels of a tariff reprieve for automakers on Wednesday, which saw a boost in stocks. However, this time, investors did not respond positively, with major U.S. benchmarks experiencing a decline. The Nasdaq Composite even entered correction territory, erasing gains made following Trump’s election.
Despite concerns over the impact of tariffs, the Trump administration appears committed to its trade strategy. The President disregarded the effects on the market, causing disappointment among investors who had relied on the “Trump put” to safeguard against significant stock drops. Additionally, U.S. Treasury Secretary Scott Bessent dismissed the notion of “cheap goods” as a fundamental aspect of the “American dream.”
Under the revised terms, goods imported from Canada and Mexico that comply with the USMCA will be temporarily exempt from the 25% tariffs until April 2. Meanwhile, China reported a slower growth in exports for the January to February period, falling short of expectations. The Trump administration also implemented a Strategic Bitcoin Reserve and a U.S. Digital Asset Stockpile following an executive order signed by the President.
On the economic front, U.S. employers announced a surge in layoffs for February, marking the highest count since the Covid-19 pandemic in 2020. Furthermore, markets reacted negatively to the ongoing changes in tariffs, with U.S. stocks declining. In Europe, the European Central Bank reduced interest rates by 25 basis points to ease monetary policy.
The semiconductor industry faced challenges in early 2025, with an ETF tracking semiconductor stocks displaying concerning patterns. Additionally, global bond yields surged as investors responded to Trump’s tariff policies and significant developments in Germany. The rise in government borrowing costs signaled a shift towards riskier assets in the European markets.
