UBS Global Wealth Management's Mark Haefele discusses the potential impact of President-elect Trump's proposed tariffs on Mexico, Canada, and China, which could lead to market volatility. The Canadian dollar and Mexican peso have weakened, while the Chinese renminbi fell to 7.26 against the US dollar. Haefele notes that the tariffs, aimed at addressing illegal migration and drug trafficking, may initiate negotiations despite the USMCA not being up for review until 2026. He maintains a positive outlook on US equities, particularly in technology, utilities, and financial sectors, while advising caution in China stocks and suggesting portfolio diversification.
