Tariff Uncertainty Grips U.S. Markets

For markets struggling to decipher President Donald Trump’s trade policy, his decision to grant U.S. automakers a one-month reprieve from tariffs on Mexico and Canada has only added to the confusion.

Market volatility is likely to persist.

Critics argue that Trump is encouraging crony capitalism, Barron’s Daily’s Callum Keown reported.

While the move raises more questions, there are several key takeaways—both positive and negative. The delay means the stock market is likely to remain stuck in a volatile, tariff-related limbo.

The beginning of April could be particularly eventful, with reciprocal tariffs on various countries set to be unveiled alongside the new deadline for auto tariffs on Mexico and Canada.

Prolonging uncertainty makes it harder for U.S. companies to plan ahead and make investments. The effects may already be surfacing—February’s ISM manufacturing report showed a sharp decline in new orders.

Consumer confidence may also be wavering, as recent spending data suggests households are becoming more cautious. Retailers such as Target and Best Buy have already warned of price hikes due to the tariffs.

On the upside, Trump’s one-month exemption for automakers suggests he may be hesitant to impose too much financial strain on U.S. companies.

Ford, General Motors, and Stellantis lobbied the president, and their appeals were successful—at least temporarily. However, by delaying the decision, Trump has merely postponed the inevitable.

The stock market, businesses, and consumers will have to wait at least another month to fully understand the scale and impact of the tariffs. Until then, volatility is likely to persist.