S&P 500, Nasdaq Sink, Dow recover when Mexico receives a Trump Tariff applause

President Trump On Monday confirmed that the United States had delayed the implementation of tariffs in Mexico in a month – Less than 24 hours Before the taxes came into force.

Development occurs when Wall Street economists discuss whether Trump is 25% tariff threats in Mexico and Canada It will last or even happen, since many anticipate a similar agreement between the United States and Canada.

“It is likely that Canada/Mexico tariffs are leverage,” Claudio Irigoyen, the main global economist of Bank of America, wrote in a note to customers on Monday.

“Our point of opinion continues to be that the tariffs and temporary threats of tariffs on Canada and Mexico will last until (a new US trade agreement., Canada and Mexico) renegotiates,” said Irigoyen, pointing out that a commercial agreement You must review in 2026.

“The news reports suggest that President Trump aims to make the review before,” he said. “In our opinion, tariffs against Canada and Mexico aim to increase the influence of the United States in these negotiations.”

Others on Wall Street have echoed similar feelings.

“While the perspectives are not clear, we believe that it is likely that tariffs centered on Canada and Mexico are of short duration,” wrote Jan Hatzius, an economist from Goldman Sachs. “We believe that the rates are more likely to be temporary.”

Tom Lee, Chief of Equity Research at Fundstrat, argued in a note early that markets probably react on noise, especially given the possibility of a greater advantage to resolve the conflict.

Until that time, the actions bounced in the minimums of the session after Mexico’s news.

“Trump is imposing tariffs to stop the flow of illegal drugs and foreigners, different from the 2018 commercial war,” said Lee, arguing that raising these sanctions “could be said that it is more flexible. Because this requires that the other nations cooperate in these Objectives.