Tesla Inc. stock experienced a decline on Monday as investors reacted to increasing macroeconomic uncertainty following U.S. President Donald Trump’s announcement of new tariffs.
Key Information: Trump revealed intentions to implement 25% tariffs on imports from Canada and Mexico, along with 20% tariffs on goods from China, effective Tuesday. This announcement has heightened worries about rising costs for American consumers and the likelihood of increased inflation.
Economic indicators have already shown signs of deterioration, with consumer spending falling in January and some GDP predictions turning negative. Inflation continues to surpass the Federal Reserve’s 2% target, with the Consumer Price Index jumping 3% in January, which was higher than economists had anticipated.
While Treasury Secretary Scott Bessent diminished the inflationary consequences of the tariffs by stating that China would bear the costs, investors remain wary. St. Louis Federal Reserve President Alberto Musalem noted that short-term inflation expectations have “increased significantly” in recent weeks.
The Federal Reserve has kept interest rates steady at a target range of 4.25% to 4.5% since January, and the likelihood of maintaining this range during the next meeting stands at 93%, as per the CME Group’s FedWatch tool.
Tesla Stocks Monday report
TSLA Stock Movement: Tesla shares fell by 2.84% to $284.65 at the close of the market on Monday.
