S&P 500 defies Trump's tariff hike; Investor optimism prevails

S&P 500 defies Trump's tariff hike, investor optimism prevails The S&P 500 index closed higher on Monday, defying expectations following President Donald Trump's announcement to double tariffs on steel and aluminum imports. This unexpected surge is attributed to investor optimism surrounding ongoing trade negotiations between the United States and its international partners. The news comes amidst heightened tensions with China, which vehemently denies any violation of existing trade agreements. "The 50% tariff placed on steel and aluminum is not just rhetoric; it's reality," stated a Washington-based political strategist, whose analysis was featured in the Astro AWANI report. "It's something that is going to last, possibly through the entire Trump administration." This expert's insight underscores the potential long-term economic implications of the tariff increase. The market's response has been mixed. Shares of US steel companies, such as Cleveland-Cliffs, experienced significant gains, reflecting the potential benefits of increased domestic demand. Conversely, shares of automakers like Ford and General Motors saw declines, highlighting the potential negative impacts of higher input costs. The situation underscores the complex interplay between trade policy, investor sentiment, and market volatility. The ongoing trade negotiations will continue to shape the economic landscape in the coming weeks, as officials seek to accelerate talks before a looming US import deadline.