- The Daily Trade
- Posts
- Trump's Tariffs: A Risky Move for the U.S. Economy
Trump's Tariffs: A Risky Move for the U.S. Economy
Ryan Serkes
February 03, 2025
The
Daily Trade
Good morning.
Today’s newsletter dives into some pivotal developments shaping the financial landscape. In the stock market, President Trump's newly imposed tariffs on imports from Canada, Mexico, and China are raising eyebrows and concerns about inflation and potential retaliatory measures. This bold maneuver marks a significant shift in trade dynamics, with implications that could ripple through the economy and affect consumer prices.
In real estate, GE Vernova's impressive $130 million investment in Schenectady is set to create jobs and bolster the local economy, while Epic Games’ withdrawal from its Cary Towne Center redevelopment plans leaves the future of that site uncertain. Lastly, in the crypto world, Block, Inc. faces mounting legal challenges that could impact its operations and reputation. Buckle up as we explore these stories and their potential impact on your investments!
First time reading? Join over 100k intellectual readers, just like you. Sign up here.
Don’t keep us a secret: Share this email with friends.
And, as always, send us feedback at [email protected].
Here's what's happening today:
Today in the Stock Market- Trump's tariffs risk inflation and trade conflict 🌍
- Tariffs on Canada, Mexico, and China announced 📈
- Buffalo businesses brace for tariff impacts 🚧
- Two Harbors stock rated a Buy amid challenges. 📈
- GE invests in wind energy, creating local jobs. 🌬️
- Epic Games withdraws Cary Towne Center redevelopment. 🎮
- Block faces class action over compliance issues. 📉
- Crocs shareholders alerted about class action lawsuits. 🥾
Question
What are your thoughts on Trump's new tariffs—do you believe they will ultimately strengthen the U.S. economy or lead to more harm than good?
Reply to this email with your answer
Today in the Stock Market
 Trump's Tariff Strategy: A Risky Move for U.S. Economy President Donald Trump recently signed an order imposing significant tariffs on imports from Canada, Mexico, and China, fulfilling a key campaign promise. The tariffs include a 25% levy on goods from Canada and Mexico and a 10% duty on imports from China, effective shortly. This decision is expected to heighten inflationary pressures and disrupt long-standing trade relationships, particularly with Canada and Mexico, which are crucial trading partners for the U.S. Trump's administration claims the tariffs aim to protect American workers and combat illegal immigration and drug trafficking. However, experts warn that this aggressive trade policy could lead to retaliatory measures from the affected countries, further escalating tensions and potentially harming the U.S. economy. The tariffs could also negatively impact consumer prices, as businesses may pass increased costs onto consumers. As the tariffs take effect, the economic implications are being closely monitored. Analysts predict that households could face an average income loss of over $1,000 due to the tariffs, which could undermine Trump's promise to reduce inflation and stabilize the economy. The situation remains fluid as Canada and Mexico consider their responses, with potential retaliatory tariffs on U.S. goods looming on the horizon. |
 Trump's Tariff Offensive: A New Era of Trade Tensions In a bold move, President Donald Trump has initiated a new wave of tariffs against Canada, Mexico, and China, marking the beginning of what many are calling a trade war. The tariffs, which are set to take effect imminently, impose a 25% levy on goods from Canada and Mexico and a 10% tax on imports from China. This aggressive action is framed as a necessary measure to address issues such as illegal immigration and drug trafficking, particularly the opioid crisis stemming from fentanyl imports. Economists and industry leaders are expressing concern over the potential fallout from these tariffs, warning that they could lead to significant price increases for everyday goods, including food and energy. The tariffs are seen as a departure from the trade agreements established during Trump's first term, including the USMCA, which aimed to foster stability and predictability in North American trade relations. As businesses brace for the impact, many fear that the tariffs could disrupt supply chains and lead to job losses, particularly in manufacturing sectors heavily reliant on cross-border trade. The uncertainty surrounding the tariffs is already affecting financial markets, with stock indices showing signs of volatility. The international community is watching closely as Canada and Mexico prepare their responses, which could further escalate the situation. |
 Buffalo Businesses Prepare for Economic Shock from Tariffs As President Trump's newly imposed tariffs on imports from Canada and Mexico take effect, businesses in border cities like Buffalo are bracing for significant economic repercussions. The 25% tariffs on most goods imported from these countries are expected to raise costs for local businesses, leading to inflationary pressures that could impact consumers directly. Local leaders and business owners are voicing concerns about the potential for increased prices on essential goods and services, which could strain household budgets in the region. Business representatives have highlighted that the tariffs could disrupt supply chains, particularly for industries such as manufacturing and construction that rely heavily on materials sourced from Canada. For instance, companies that import Canadian lumber or other goods may face steep price hikes, which could ultimately affect job stability and economic growth in the area. The president's assertion that these tariffs will strengthen the U.S. economy is met with skepticism by many in the local business community. In response to the tariffs, Canadian officials are preparing retaliatory measures, which could include imposing their own tariffs on American goods. This tit-for-tat could escalate into a broader trade conflict, with significant implications for cross-border commerce. As the situation unfolds, local businesses are left grappling with uncertainty, and many are calling for a reevaluation of these aggressive trade policies to protect the economic interests of their communities. |
Today in Real Estate
 GE Vernova's $130 Million Investment Sparks Job Creation in Schenectady GE Vernova has announced a significant investment of approximately $130 million into its Schenectady facility and Niskayuna Research Center, marking a pivotal moment for the company's onshore wind manufacturing operations. This investment includes $30 million specifically allocated to enhance the wind manufacturing capabilities at the Schenectady plant, which has a rich history and recently celebrated its 75th anniversary. The facility is notable for its size, capable of housing over 30 football fields, and is currently producing large-scale wind turbines. The Schenectady plant, which employs over 900 workers, has been revitalized by the introduction of wind turbine production, with plans to ship a significant number of turbines in the coming years. The recent enhancements are expected to create around 200 new jobs, reflecting a broader commitment to renewable energy sources amid changing market dynamics. GE Vernova's plant manager, Brian Carlson, emphasized the facility's diverse production capabilities, which include not only wind turbines but also nuclear and gas power equipment. The investment in the Niskayuna campus, totaling $105 million, will fund the construction of new laboratories focused on electrification and decarbonization, further supporting GE Vernova's commitment to sustainable energy solutions. Local officials have expressed optimism about the positive impact of these developments on the local economy and the workforce, reinforcing New York's focus on clean energy technology. |
 Epic Games Withdraws Cary Towne Center Redevelopment Plans Epic Games, the renowned video game developer behind Fortnite, has officially withdrawn its plans to redevelop the Cary Towne Center in Cary, North Carolina. The company had initially purchased the site in 2020 with intentions to establish a new global headquarters, which included plans for 2.7 million square feet of office space, commercial areas, and hotel accommodations. However, due to a prolonged period of inactivity, the zoning request necessary for this redevelopment was retracted. The current zoning status of the property remains aligned with a previous project known as Carolina Yards, which aims to transform the former mall site into a mixed-use development. Epic Games has not provided any updates regarding future plans for the site, leaving community members and stakeholders uncertain about the direction of the project. The decision to withdraw comes amid broader trends affecting commercial real estate and redevelopment projects, particularly in areas previously dominated by retail spaces. The Cary Towne Center's fate is now in limbo, as the community awaits further developments on potential new uses for the property that align with the evolving needs of the area. |
Two Harbors Investment Corp. Rated a Strong Buy by Analyst Two Harbors Investment Corp. (TWO) has recently caught the attention of Wall Street analyst Michael Diana from Maxim Group, who reiterated a Buy rating on the stock with a price target set at $15.00. This recommendation comes despite the company experiencing a dip in its book value per share, largely due to the ongoing volatility in interest rates impacting residential mortgage-backed securities (RMBS). Diana highlights that the company's dividend is sustainable and could be over-covered, indicating a potential for future capital growth and investment opportunities. Two Harbors employs a strategic approach by pairing RMBS with mortgage servicing rights (MSRs), which helps to mitigate the risks associated with fluctuating interest rates. The company also has a direct-to-consumer mortgage origination infrastructure, providing an additional layer of protection against refinancing risks. Currently, the shares are trading below book value, and with a projected dividend yield of 14.5%, the stock is positioned for a potentially attractive total return over the next year. As a real estate investment trust (REIT), Two Harbors focuses on investing in, financing, and managing agency and non-agency RMBS, along with other financial assets. Established in 2009 and headquartered in New York, the company's primary objective is to deliver risk-adjusted returns to its shareholders through dividends and capital appreciation. |
Today in Crypto
Block, Inc. Under Fire: Class Action Lawsuit and Regulatory Scrutiny Block, Inc. (formerly SQ) is facing significant legal challenges following a detailed report by Hindenburg Research that accused the company of inflating user counts and failing to conduct proper due diligence on its Cash App platform. This investigation has revealed serious compliance issues, including allegations that Block facilitated illegal activities such as money laundering and terrorism financing through inadequate user verification processes. The fallout from these findings has led to a substantial drop in Block's stock price, prompting Hagens Berman to encourage affected investors to come forward with their losses. In addition to the class action lawsuit, Block has been subjected to regulatory scrutiny, with the Consumer Financial Protection Bureau (CFPB) ordering the company to pay $175 million for failing to address user fraud effectively. The CFPB's findings indicate that Cash App was exploited by criminals to defraud users, raising serious concerns about the company's operational integrity. Block has also disclosed ongoing inquiries from the SEC and the Department of Justice, which may lead to further legal repercussions. As Block continues to navigate these challenges, the company has expressed its commitment to cooperating with regulatory bodies. However, the uncertainty surrounding the potential outcomes of these investigations poses a risk to Block's reputation and financial stability. Investors are advised to stay informed about the developments in this case, as further legal actions may arise in the future. |
Crocs Faces Class Action: Shareholders Urged to Act The Law Offices of Frank R. Cruz have announced class action lawsuits against Crocs, Inc. (NASDAQ:CROX) and FTAI Aviation Ltd., reminding shareholders of their rights to participate in the legal proceedings. The lawsuits relate to allegations that both companies made materially false or misleading statements regarding their business operations and financial prospects. Crocs, in particular, is facing scrutiny over its acquisition of HEYDUDE and the subsequent impact on its revenue reporting. According to the complaint, Crocs failed to disclose critical information about the sustainability of HEYDUDE's revenue growth, which was largely driven by stocking third-party wholesalers following the acquisition. As retail partners began to destock excess inventory, the company experienced a decline in product demand, leading to negative financial implications. The class action aims to address these misleading statements and hold the company accountable for any losses incurred by shareholders. Shareholders who suffered losses during the specified class periods are encouraged to contact the Law Offices of Frank R. Cruz for further information. The firm is actively seeking to represent investors who may have been adversely affected by Crocs' alleged misrepresentations. As the case develops, affected shareholders should remain vigilant and consider their legal options. |
Today's Technical Analysis
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Sell | STOCH Sell |
RSI Buy | MFI Buy | WillR Buy | AO Buy |
CCI Buy | BBANDS Buy | ULTOSC Buy | STOCH Hold |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Hold | ULTOSC Sell | STOCH Sell |
RSI Sell | MFI Sell | WillR Sell | AO Sell |
CCI Sell | BBANDS Sell | ULTOSC Hold | STOCH Sell |
Thanks for Reading!
Your feedback is important to us. We’re always looking for ways to improve and would love to hear your thoughts on how we can make this newsletter even better for you. Whether you have suggestions, ideas, or just want to share what you enjoy most, we’re all ears.
At any time, you can reply to this email with your thoughts. Every comment helps us serve you better.
Thank you for being a valued reader.
Check out our partners!
We’ve teamed up with a few like-minded newsletters to bring you even more fresh insights and fun. If you’re craving extra knowledge, entertainment, and/or inspiration in your inbox, give them a look below!
1. Labrador - Discover high-return real estate deals daily with Labrador— the ultimate bird dog for smart investors.
2. Pour Decisions - Your sommelier-approved excuse to open another bottle. Get weekly wine recommendations from top sommeliers across the world.
3. Quip - A daily dose of jokes, trivia, and inspiration to brighten your day.
How can we improve our newsletter's content?Your feedback is really important to us. We would really appreciate if you'd take a moment to let us know how we can bring you more value. |
Let’s stay in touch!
Thank you for reading today’s edition of The Daily Trade.
Let’s connect on LinkedIn!
-Ryan Serkes
Subscribe here if this email was forwarded to you!
Technical Indicator Information
Relative Strength Index (RSI) | Period: 14 days | Overvalued threshold: 70 | Undervalued threshold: 30
Money Flow Index (MFI) | Period: 14 days | Overvalued threshold: 80 | Undervalued threshold: 20
Williams Percent Range (WillR) | Period: 14 days | Overvalued threshold: -20 | Undervalued threshold: -80
Aroon Oscillator (AO) | Period: 14 days | Overvalued threshold: 75 | Undervalued threshold: -75
Moving Average Convergence/Divergence (MACD) | Period: 26/12/9 days | Overvalued threshold: MACD crosses below MACD Signal | Undervalued threshold: MACD crosses above MACD Signal
Stochastic Oscillator (STOCH) | Period: 14/3/3 days | Overvalued threshold: %K crosses below %D above 80 | Undervalued threshold: %K crosses above %D below 20
Commodity Channel Index (CCI) | Period: 20 days | Overvalued threshold: 100 | Undervalued threshold: -100
Bollinger Bands (BBANDS) | Period: 20 days | Overvalued threshold: price >= upper band | Undervalued threshold: price <= lower band
Parabolic Stop and Reverse (SAR) | Period: variable 50 - 100 days | Overvalued threshold: SAR crosses above price | Undervalued threshold: SAR crosses below price
Triple Exponential Average (TRIX) | Period: 15 days | Overvalued threshold: TRIX crosses below 0 | Undervalued threshold: TRIX crosses above 0
Ultimate Oscillator (ULTOSC) | Period: 28/14/7 days | Overvalued threshold: 70 | Undervalued threshold: 30
Directional Movement Index (DMI) | Period: 14 days | Overvalued threshold: PlusDI crosses below MinusDI | Undervalued threshold: PlusDI crosses above MinusDI
Average Directional Index (ADX) | Period: variable 14 days | Requirement: >= 25
Analysis is only performed on securities with market caps in excess of $100 million and with daily trade volume in excess of $50 million.
Disclaimers
The information in our newsletter is not intended to constitute investment advice and is not designed to meet your personal financial situation. It is provided for information purposes only and nothing herein constitutes investment, legal, accounting or tax advice, or a recommendation to buy, sell or hold a security. No recommendation or advice is being given as to whether any investment is suitable for a particular investor or a group of investors. It should not be assumed that any investments in securities, companies, sectors or markets identified and described will be profitable. We strongly advise you to discuss your investment options with your financial advisor prior to making any investments, including whether any investment is suitable for your specific needs.
Although we obtain information contained in our newsletter from sources we believe to be reliable, we cannot guarantee its accuracy. The analysis provided in this newsletter is based on the prior trading day’s closing prices and may not reflect after-hours trading, earnings announcements, or other significant market events that occur outside regular trading hours. As such, any data or commentary may not fully capture the latest market movements or emerging factors. For the most current and comprehensive view, please consider additional sources or consult with a qualified financial professional.
The information provided in our newsletter is private, privileged, and confidential information, licensed for your sole individual use as a subscriber. We reserve all rights to the content of this newsletter. Forwarding, copying, disseminating, or distributing this newsletter in whole or in part, including substantial quotation of any portion the publication or any release of specific investment recommendations, is strictly prohibited.