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 generally taken President Donald Trump’s latest round of tariffs well, with investors betting the measures may not have a lasting impact on trade.
The MSCI World Index, which measures global stock performance, was flat. Safe assets remain strong and yields are 10 years US Treasury Although we lost just over 1 basis point, gold It rose by about 0.8%. The dollar index fell by about 0.3%.
“The market didn’t really react to this news. It was already widely expected,” Ed Yardeni, president of Yardeni Research, told CNBC. “Markets have learned over the last year that the (world) economy is surprisingly resilient in the face of what I call the Trump tariff chaos.”
Sitting around doing nothing, this is just noise. There will be something new to worry about within a few days.
hugh dive
atlas fund management
President Trump’s move to raise global tariffs to 15% from the originally announced 10% comes after the U.S. Supreme Court struck down sweeping penalties he had imposed under the International Emergency Economic Powers Act.
Market strategists said the Supreme Court’s decision looks more like a procedural reset than a shift in protectionist policy. The new Section 122 tariffs effectively replace the now-defunct IEEPA tariffs, leaving the tariffs under Sections 301 and 232 in place, including those targeting steel, automobiles, and China.
Therefore, no changes have occurred that would shake up the market, at least not yet.
Do you sit still and do nothing?
Analysts suggest that patience is key for investors right now.
“No statement by President Trump on trade policy is now being treated as permanent,” said Hugh Dive, chief investment officer at Atlas Funds Management.
“We’re sitting around doing nothing and this is just noise. In a few days there will be something new to worry about,” he added.
Mr. Trump has developed a reputation among investors for using tariffs as a negotiating tactic, announcing drastic or aggressive measures and then recalibrating once market stress or diplomatic pushback becomes clear. The move is widely referred to as “TACO: Trump Always Chickens Out.”
“The president was not going to accept defeat without a countermeasure or strategy,” Yardeni said. But he pointed to limitations to the new approach, saying tariffs under Article 122 are temporary and difficult to tailor on a country-by-country basis.
“Once we were able to use tariffs like a hammer, it became a lot easier,” he told CNBC. “Now it’s more like a rubber mallet. It’s certainly not a very powerful tool.”
As for what position investors should take, Yardeni said he would echo Altas’ dive and “sit back and do nothing. Focus on the bottom line, focus on the resilience of the economy.”
He also argued that last year’s tax law “locked in some fairly stimulative fiscal policy” that could help ease the drag on tariffs. With midterm elections approaching, Yardeni suggested trade could recede from political priorities. “I wouldn’t be surprised if the whole tariff approach gets buried between now and the midterm elections.”
Some people are a little more cautious.
“Unless you believe you can clearly see through the disruption, it makes sense to downplay the risk,” said Steve Sosnick, chief strategist at Interactive Brokers. He noted that investors could consider reducing their exposure to U.S. stocks in favor of global companies that are less susceptible to U.S. trade fluctuations.
But while the escalation is jarring, investors are already somewhat accustomed to the president’s capacity for “anger and desire for revenge,” he said.
Sosnick said that from an asset-wide perspective, the impact could be limited as long as positive investor sentiment can avoid short-term negative impacts. Still, persistent uncertainty could weigh on global trade and corporate planning, making it “very difficult to see how the outlook for future levies could be seen as market-friendly.”
On Monday, cryptocurrencies showed a sharper reaction. Bitcoin’s more than 5% decline reflects its status as what one expert called a “high-beta liquid asset rather than a traditional safe-haven asset.”
“A 5% increase is well within normal volatility,” said Billie Leung, investment strategist at GlobalX Australia. Absent a regulatory shock, such a rebound is typically flow-driven rather than fundamental-driven, he added.
Bitcoin has been in a steady decline since reaching over $125,000 in October last year, and it is predicted that the decline will continue until 2026. The world’s largest cryptocurrency is down 26% so far this year and more than 47% from its October high.
Leon’s base case is that the market treats the 15% tariffs as “more noise than a structural reset.”
“While there may be an initial spike in volatility, global earnings and growth expectations are unlikely to be significantly derailed unless this clearly develops into a permanent and widespread escalation.”
