With the Trump administration’s impending 25% tariffs on Canada and Mexico and an additional 10% tariff on China scheduled for February 4th, this week’s market is expected to focus on the direction of the trade war.
Including retaliatory tariffs, the final outcome remains entirely unclear.
The only thing we can say at this point is that, since tariffs are a means rather than an end, President Donald Trump is likely to make deals in a way that avoids fatal damage to the U.S. economy.
However, it should not be forgotten that the United States has a tradition in which tariffs served as the federal government’s main source of revenue until the permanent introduction of income tax in 1913, and that the country was fundamentally protectionist before World War II.
In this week’s contribution, I’d like to focus on the so-called “DeepSeek Shock,” which significantly moved the markets even before the tariff issue.
