Why Trump’s reciprocal tariffs may actually be a positive sign for Wall Street.

By Jerry  Published On February 10, 2025

Wall Street brushed aside President Donald Trump’s latest tariff threats as stocks rallied despite his plans to target key industrial metals and impose retaliatory duties.

On Monday, Trump is expected to announce 25% tariffs on steel and aluminum with so-called reciprocal tariffs due to come out later this week. That comes after a week of whiplash, when he announced levies on Mexico and Canada then put them on hold, while allowing tariffs on China to take effect before later suspending taxes on its low-cost imports.

“So far, I’d say the news that we’ve seen on tariffs—they’ve had more bark than bite, meaning they’ve proven to be opportunities for investors to buy.

While duties on steel and aluminum would hike prices for manufacturers like automakers, they would have less overall impact. For example, America’s top source of the imported metals, Canada, sends $7 billion a year in steel and $9 billion in aluminum to the U.S. That’s just a fraction of the nearly $500 billion in goods and services from Canada. Then there are reciprocal tariffs, which would see the U.S. imposing import duties that match another country’s tariffs on American products.

Source: FORTUNE


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