Hatzius predicts that an extension of tariffs for Canada and Mexico is probable, while anticipating an escalation of tariffs on China. The seasoned economist also foresees the imposition of new tariffs on EU automobiles, as well as essential imports like pharmaceuticals and semiconductors. Watch: Insights from a new CEO on public company perspectives regarding Trump and regulatory policies.
Despite concerns over tariffs, the markets have demonstrated resilience, with traders perceiving Trump’s actions as a strategic negotiating maneuver. The Nasdaq Composite (^IXIC) and Dow Jones Industrial Average (^DJI) have seen gains of 2% and 1.2% in February, respectively. The S&P 500 (^GSPC) has shown modest growth. Notably, high-flying stocks like Nvidia (NVDA) and Palantir (PLTR) have soared, with the latter surging 20% this month and the former climbing 43%.
Nevertheless, corporate executives are becoming more cautious in light of the prevailing uncertainty under the Trump administration, which complicates future planning amidst rising business costs. “We are not insulated from these tariffs – although we are less affected than many other businesses,” shared Ramon Laguarta, chairman and CEO of PepsiCo (PEP), in a recent conversation.
“Primarily sourcing aluminum from Canada and some oats as well, the majority of our food inputs such as potatoes and corn are domestically produced. While we anticipate an impact, we have cultivated enough adaptability to navigate these challenges. Hence, our conservative guidance reflects the need for flexibility in addressing these issues,” he explained.
—Brian Sozzi is the Executive Editor at Yahoo Finance. Stay connected with Sozzi on X @BrianSozzi, Instagram, and LinkedIn. For story suggestions, reach out to brian.sozzi@yahoofinance.com. Click here for the latest updates on the stock market and comprehensive analysis, covering significant market-moving events. Stay informed with the most recent financial and business news on Yahoo Finance.
