Tariff Target Markets
Non-U.S. stocks have posted gains so far in 2025, helping to offset the U.S. market’s sluggish start. Surprisingly, some of the strongest returns have come from countries directly targeted by new tariffs—Canada, Mexico, and China.
While trade tensions have dominated headlines, markets in these countries are up for the year. It’s a short timeframe, but the trend echoes what we saw during Trump’s first term, when Chinese stocks outperformed the U.S. despite ongoing trade disputes.
This resilience doesn’t suggest investors are ignoring trade policy. Rather, it may reflect that recent tariff news was largely anticipated—and already priced into the market.