May 31, 2019 Today's Tariff Trepidation by Lester Murray

It was shaping up to be a slow Friday that was going to ease us all into the weekend. But, that all changed with a White House announcement late Thursday that outlines the imposition of tariffs on Mexican products imported by America. The proposed tariffs would start at 5% and increase by 5% each month that Mexico fails to halt the flow of immigrants on their way to the U.S. The tariffs would top out at 25%.

The announcement was less predictable than the markets' reactions. Equity futures are down significantly while bonds continue their week-long rally. The Treasury's Two-Year is a nudge under 2% while the Ten-Year flirts with 2.15%.  Ninety-day bills remain a lofty 2.30%.