US stock markets reacted sharply to the opening bell on Monday following news of US President Trump announcing tariffs on Canada, Mexico, and China. The NASDAQ (.IXIC: INDEXNASDAQ) saw a significant drop, nearing a 2.5% decline at one point. However, the market quickly rebounded after Trump withdrew the proposed tariffs following discussions with Canadian and Mexican leaders. These tariffs have been suspended for one month. While US markets showed signs of recovery on Tuesday, the trade tensions remain far from resolved. China has responded to the initial US tariff announcements with its own set of tariffs, including a 15% levy on coal and liquefied natural gas (LNG). Trump, on the other hand, described the initial 10% tariffs imposed on China as the “opening salvo”. All in all, it’s been a rough start to February, to put it mildly.

A tweet away from a market decline

If you’re feeling dizzy from watching the day-to-day events unfold, take a step back and think for a moment....