Traders work on the New York Stock Exchange floor on March 3, 2025.
Spencer Platt | Getty Images
The benchmarks dropped after Trump confirmed that the U.S.’ 25% duties on Canada and Mexico would go into effect. He added that there was “no room left” for the two nations to negotiate these new import tariffs. Trump also slapped an additional 10% tariff on Chinese goods. These levies took effect at midnight
China retaliated with additional tariffs of up to 15% on some U.S. products. Canadian Prime Minister Justin Trudeau said his country would also put a 25% levy on U.S. goods.
Monday’s sell-off dragged the S&P 500 into the red for 2025. Scott Ladner, chief investment officer at Horizon Investments, does not see these losses reversing back anytime soon.
“We don’t see the market going a whole lot of anywhere really fast,” he told CNBC. “We are at a place where sentiment is really in the toilet and that makes getting reversals out of this probably a little bit of a slog.”
On the other hand, Ladner highlighted that the U.S. economy is still going strong, with companies seeing earnings growth of between 10% and 15%.
“We’re not heading into a recession. We’re not even having an earnings recession,” he added. “There’s really nothing out there right now that we can see that should really fully dent corporate earnings power. Our medium-term view is still really positive.”
