February’s stock market trading closes out with Trump tariffs on the horizon. The U.S. President said on Thursday that the country will impose 25% tariffs on Mexican and Canadian goods starting on March 4. It will add an extra duty on Chinese imports.
The U.S. cited that deadly drugs continue to enter from those countries. Last month, Mexico averted the new duties by pledging 10,000 military personnel at the borders. Canada also tightened security and pledged funds.
In Thursday afternoon trade, sellers sold stocks to take advantage of the market’s gain from the February lows. However, Microsoft (MSFT) lost 12.2% month-to-date. By comparison, Amazon (AMZN) dropped by 12.3%, Tesla (TSLA) by 29%, and Alphabet (GOOG) by 13.6%
.
For the month, China’s stock market shined. The unexpected unveiling of DeepSeek showed the world that the country could build AI solutions. After the news, Tencent (TCEHY), Alibaba (BABA), and Baidu (BIDU) announced plans to build AI solutions, too.
Consumer Pain
U.S. consumers will face inflation matching the tariff rates. The price increase will depend on Canada, China, and Mexico’s response. Investors bought defensive names with strong branding. This included Coca-Cola (KO), Phillip Morris (PM), Mondelez (MDLZ), Hershey (HSY), and Costco (COST).
Consumers will likely continue buying from those companies while cutting back on costly items. For example, expect sales for Home Depot (HD) and Lowe’s (LOW) to fall.
