Wall Street is optimistic despite President Trump’s proposed tariffs, with the S&P 500 nearing a record high.
Investors are hopeful that the tariffs may not have as serious an impact as initially feared, as they won’t take effect immediately.
The S&P 500 rose 1% on Wednesday, just shy of its record high. Earlier this week, Trump imposed 25% tariffs on steel and aluminum imports and additional tariffs on Canada, Mexico, and China.
However, tariffs on Canada and Mexico were paused after both countries agreed to tighten border enforcement.
Future Uncertainty
Though the market has reacted positively, experts warn it’s not immune to future shocks. Paul Ashworth from Capital Economics notes that these tariffs could raise U.S. consumer prices.
If the market continues to stay calm, Trump may become more aggressive, leading to further volatility.
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