As a stock market investor, I’m disappointed in the new tariffs President Trump has imposed—10% on imports from China and 25% on imports from Mexico and Canada, including a 10% duty on Canadian energy imports (oil, natural gas, electricity). If these tariffs persist all year without resolution, corporate earnings could take a 2%-3% hit, which means a similar drop in the S&P 500 or more wouldn’t be surprising.

As expected, the retaliations came fast. Canada’s soon-to-be-gone Prime Minister Trudeau hit back with matching 25% tariffs on $155 billion worth of U.S. imports, targeting alcohol and fruit, which could significantly impact major U.S. exporters.

Meanwhile, Mexico’s President Sheinbaum rejected Trump’s claims about Mexico collaborating with criminal organizations and implemented her own retaliatory tariffs on U.S. goods. She also suggested the U.S. should focus on fighting domestic drug trade and money laundering rather than blaming Mexico.

We should expect retaliatory measures from China soon. In the last U.S.-China trade war, many American businesses and consumers bore the cost of tariffs on

Keep reading this article on Financial Samurai.