Market Brief, North America

Global financial markets are caught in a worsening downturn as the White House prepares to unleash its most significant round of trade levies yet. With President Trump expected to unveil broad-ranging reciprocal tariffs against trading partners on Wednesday, North American equity markets are setting up for a third day of losses, safe-haven demand is pushing benchmark ten-year Treasury yields below the 4.2-percent threshold, and the trade-weighted greenback is slipping against its major rivals as investors pursue growth opportunities outside the United States. Uncertainty is high. After a series of threats, drip-feed announcements, delays, and reversals, markets have no clear understanding...

Markets have joined economists in thinking that trade wars really aren’t good, or easy to win. After weeks of dizzying changes in US tariff policies, the S&P 500 is down 7 percent from all-time highs, Treasury yields have fallen sharply, and the dollar is down against all of its major counterparts—despite this morning’s relatively-stable non-farm payrolls report. In the latest development, Donald Trump yesterday said he would pause tariffs on goods that comply with the North American free trade pact negotiated during his first tour in office—just two days after he imposed near-universal 25 percent tariffs on Canada and Mexico....