UBS’ Cashin Says Market Expects Mexico Tariffs to Last a Week

Wall Street isn’t expecting President Donald Trump’s proposed tariffs on Mexican imports to last more than a week, UBS’ Art Cashin told CNBC on Thursday.

“The market is almost willing to tolerate it being imposed, but it will not tolerate it if it lasts,” Cashin said after a week of gains on Wall Street. “They’re assuming it may be too late to either postpone it or change it, so they’ll get imposed. But they assume they’ll come off within a week.”

Stocks rose slightly Thursday shortly after the open as investors monitored global trade tensions. The Dow Jones Industrial Average and the S&P 500 were slightly higher, while the Nasdaq Composite was down fractionally.

Trump announced last week he’s putting a 5% tariff on all Mexican goods starting Monday if Mexico doesn’t substantially limit or stop the number of migrants crossing into the U.S. The tariffs, if enacted, will go up incrementally to 25% by October. U.S.-Mexican talks are scheduled to resume Thursday.

A Mexican trade official told CNBC last week that Mexico won’t retaliate against Trump’s tariffs until the threats seem more serious.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza