The markets were hit by a shockwave on Friday morning after President Donald Trump tweeted out that he was planning on implementing tariffs on Mexico as of June 10.
As the market reacted to the news, Jeff Marks, senior portfolio analyst for Jim Cramer's Action Alerts PLUS investing club, weighed in on the tariffs and why--in light of the news--the G20 summit will be very important for U.S. trade relations.
"We've G20 coming up, so if we could just see better relations between the U.S. and China, that would be big. And that in any type of quick resolution between [the U.S. and China] and with this new spat with Mexico now [would] obviously [be] a plus," said Marks.
When asked about the impact of the Mexican tariffs on the market, Marks replied:
I think that what it does, first and foremost, it adds into like another level of uncertainty into what the president might do next. I don't think many people saw this coming, which is why you're going to see the market down. Um, I think that we could see this, type of down day for a couple of days...First it's going to be just selling and then people are going to try and figure out the winners from the losers and then those are going to get sold off too. And then maybe by day three you'll start to see some buying and some names that are insulated from this. But I think that the the economic type tariff policy with China's one thing, I don't think many saw this coming now. It could get fixed quicker than, maybe say, China because I think that there's more of a willingness to get a deal done here, but the market now needs to price in what Trump will do next and that's going to take time.