Canada says response to 25% aluminium and steel tariff will be ‘clear and calibrated’; Hong Kong to file complaint with World Trade Organization over tariffs imposed on city
Carlos Slim, Mexico’s richest man, has warned that tariffs simply don’t work.
Speaking at his annual conference on Monday, Slim warned:
“They increase inflation … the interest rate doesn’t go down … tariffs don’t solve problems.”
“What the U.S. has to do is regain global leadership,” he said.
“It would be interesting if he did a sort of double play, let’s say on one side reduce the costs of certain things and on the other channel it toward investment.”
Trump said on Monday that tariffs on metals could go higher, and other tariffs could be announced later this week. At this stage, traders have little clarity about how far Trump’s tariff policies will go, whether they are mostly a negotiating tactic or if they will have a more long-lasting economic impact. It is also unclear if it will spark a wave of protectionism.
The Vix volatility index fell to 15.81 on Monday, which is below the 12-month average of 15.92. This is a clear sign that investors have some ‘tariff fatigue’ and it may take another driver, such as inflation concerns, to move the dial for equity markets. While volatility remains low, this could help stocks to grind higher.