The new set of tariffs that replaced existing, temporary ones will have an impact on consumers. Despite the Supreme Court striking down the previous set, the new ones might have a good chance of holding.
This time, the White House accused 60 countries of alleged forced labor. The U.S. also claimed that Vietnam (VNM) stole intellectual property. It is also punishing firms it accuses of excess industrial capacity.
Investors should watch out for selling pressure on companies most exposed to tariffs. Food stocks like ConAgra (CAG), General Mills (GIS), and Kraft Heinz (KHC) might face weak sales as consumers offset tariff costs by spending less.
Automobile firms that performed well might give back their gains. General Motors (GM), Stellantis (STLA), and Rivian (RIVN) might sell fewer vehicles as prices rise. Tariffs will likely add costs to automotive parts. It might put pressure on stocks like Advance Auto Parts (AAP) or Magna International (MGA).
U.S. bond prices might strengthen, thanks to tariffs. The country has around $40 trillion in debt. The tariff revenue would help it pay some of that back. Expect the U.S. dollar (DXY) (UUP) to strengthen. Last year, after Liberation Day tariffs, the currency strengthened.
Stock markets are pricing an increase in U.S. imports despite the tariffs.
