Markets Rebound After Tariff Pause

Team Veye | 04-Feb-2025

Global markets had tanked following imposition of 25% tariff on imports from Mexico and most goods from Canada, and 10% on goods from China by the U.S. president during the weekend. The effect was further accentuated by the ongoing uncertainty of an early rate cut by Federal Reserve.

The global markets heaved a sigh of relief and bounced back when U.S. President Donald Trump paused tariffs on Canada for at least 30 days after reaching a tentative agreement with Canada's Prime Minister on Monday afternoon. Earlier, during the day Trump had announced a 30-day pause with Mexico after the country agreed to demands for more troops on the Southern border.

Canada has agreed to a $1.3 billion border protection plan to prevent and end fentanyl smuggling from Canada to the US. In exchange.

Responding favourably, ASX 200 and All ordinaries opened in the green and remained so till the time of writing this.

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