The recent announcement by President Donald Trump to double tariffs on Canadian steel and aluminum imports to 50% has sent shockwaves through multiple sectors. This decision, a retaliation against Ontario’s electricity surcharge on U.S. states, has intensified fears of a looming recession, colloquially termed a “Trumpcession.” The immediate aftermath saw the S&P 500 inching closer to correction territory, with notable declines across major indices.
Industries bearing the brunt include:
- Automotive: Facing increased production costs due to pricier raw materials, leading to potential hikes in vehicle prices.
- Aerospace: Confronting rising expenses in aircraft manufacturing, potentially affecting global supply chains.
- Technology: Experiencing market instability, prompting companies to reassess investment strategies.
The overarching uncertainty has led businesses to issue warnings about possible price increases, which could result in higher inflation and slower economic growth. CEOs, while cautious in their public statements, have expressed concerns over the unpredictable policy environment, leading to hesitancy in investment and expansion plans.