Trump has sent ripples across the market by imposing 25% tariffs on Canada and 10% for China. Trump’s bold move has resulted in reliatory tariffs from the countries involved – such as the Canadian province cancelling its $100m contract with Starlink. Starlink’s owner Elon Musk is a member of Trump’s team.
The stock market witnessed a dip, with the S&P sliding down by about 3%. As a result, investors are being caught in another wave of uncertainty regarding tariffs. It is also uncertain what the Fed would do about interest rates in respond to these tariffs imposed.
In the meantime, it is important to remain diligent in investing and look into hedges against inflation, such as Gold. It is also worth assessing positions in semiconductor stocks as the Trump administration considers further increasing trade restrictions. The SMH Semiconductor ETF has dipped below its 200-day moving average and is prone to further decline if Trump decides to impose further tariffs.
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