Markets shrug off Trump’s latest tariffs
Traders work on the floor of the New York Stock Exchange during morning trading on February 20, 2026 in New York City.
Michael M. Santiago | Getty Images
Markets have taken U.S. President Donald Trump’s latest tariff salvos largely in their stride, with investors assessing whether the moves will have a lasting impact on trade or are another negotiating tactic.
The market has so far shrugged off the tariffs. Asia stocks were mostly higher, safe-haven assets stayed firm, with yield on the 10-year U.S. Treasury little changed, while gold inched about 1% higher. The U.S. dollar index slid around 0.3%.
“The market didn’t really react much to the news. It was already widely anticipated,” Ed Yardeni, president of Yardeni Research, told CNBC. “The market learned last year that the [global] economy is remarkably resilient in the face of what I call Trump tariff turmoil.”
Sit on hands and do nothing, this is just noise, there will be something new to worry about within a few days.
Hugh Dive
Atlas Funds Management
Trump’s move to raise global tariffs to 15% from 10% initially announced, comes after the U.S. Supreme Court struck down a broad swath of levies he had imposed under the International Emergency Economic Powers Act.
Market strategists said that the Supreme Court’s ruling looks more like a procedural reset than a reversal of protectionist policy. Section 122, under which the new tariffs have been imposed, effectively replaces the invalidated IEEPA tariffs on a temporary basis, while leaving in place duties under Section 301 and Section 232, including those targeting steel, autos and China.
So, not much has changed to unnerve the markets — at least, not yet.
Sit tight and do nothing?
Analysts suggest that the key for investors now is to be patient.
“No statement on trade policy from Trump is now treated as durable,” said Hugh Dive, chief investment officer at Atlas Funds Management.
“Sit on hands and do nothing, this is just noise, there will be something new to worry about within a few days,” he added.
Trump has developed a reputation among investors for using tariffs as a negotiating tactic, announcing sweeping or aggressive measures, then recalibrating once market stress or diplomatic pushback becomes clearer. The move has been widely referred as TACO: Trump Always Chickens Out.
“The President really wasn’t going to accept defeat without having a counter or strategy,” Yardeni said. However, he noted that the new approach is constrained: tariffs under Section 122 are temporary and harder to tailor country by country.
“It was much easier when he could use tariffs as a sledgehammer,” he told CNBC. “Now it’s become sort of a rubber mallet. It’s certainly not as powerful a tool.”
As for how investors should position, Yardeni echoed Altas’ Dive: “Sit still and do nothing. Focus on earnings, focus on the resilience of the economy.”
He also argued that last year’s tax legislation has “locked in some fairly stimulative fiscal policy,” which could help cushion any…
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