US stock market dips days before Trump's new tariffs take effect

Dharshini David
Deputy economics editor

Stock markets are having a bumpy start to the week
ahead of President Trump’s “Liberation Day” tariffs
announcement.

They’re plagued by concerns about the impact those
could have.

And the answer: nobody knows.

Given the twists and back-pedalling we’ve seen so
far, its hugely unclear what the president will unveil. And who will
retaliate with their own tariffs.

And even when we do get that announcement, it is unclear
what the impact will be: will the importers affected try to absorb the taxes
along the supply chain or pass on to customers?

Will affected exporters simply
try to divert their goods elsewhere? Will consumers swallow higher prices or
simply switch to other, cheaper products?

All of those reactions will influence
how prices, profits, jobs and growth are impacted – and how much President
Trump actually raises through these taxes.

All of these are impossible to pinpoint,
policymakers’ claims may be wide of the mark. In the meantime, the
markets will be stalked by their nemesis: uncertainty.