President Donald Trump has imposed sweeping 25% tariffs on Canada and Mexico imports, alongside additional levies of 10% on all Chinese imports and 10% on Canadian energy that will take effect at midnight. Veda Partners’ managing partner and director of economic policy, Henrietta Treyz, joins Catalysts to discuss this development and how investors are feeling.
Treyz still expects that the tariffs could get “materially watered down” before implementation or that “they’re going to get pulled back altogether.” She adds that most investors believe this threat “is not serious,” which is leading to the muted market reaction (^DJI, ^IXIC, ^GSPC).
Treyz also notes that the current tariff strategy poses “a lot of questions,” especially for industries like automotive manufacturers, which the US and Mexico are heavily dependent on each other for and deeply entwined.
Regarding who has control over these tariffs, Treyz points out that Wall Street is confident US Treasury Secretary Scott Bessent “is the one running the show.” However, she dissents in her assessment of the situation on Capitol Hill, arguing that the people developing this tariff strategy are “much more voluminous” than just Scott Bessent.
She adds that “the focus of the street on Scott Bessent is inconsistent on Capitol Hill and in the White House,” emphasizing that “President Trump himself is a staunch advocate of tariffs.”
To watch more expert insights and analysis on the latest market action, check out more Catalysts here.
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