Markets may be past peak tariff uncertainty, even as investors weigh new tax on auto imports and brace for 'Liberation Day'

President Donald Trump displays a signed executive order in the Oval Office of the White House on March 26, 2025 in Washington, DC. (Credit: Win McNamee—Getty Images)

• Investors have been forced to reckon with the apparent fact that Trump is serious about implementing substantial tariffs on several, if not all, U.S. trading partners. While there’s plenty of turmoil to come, Morgan Stanley Investment Management executive Jim Caron said traders are well-equipped to map out how different scenarios could impact the global economy and corporate earnings. 

President Donald Trump’s 25% tariff on imported vehicles and car parts pushed auto stocks down Thursday, but the S&P 500 and other major indexes held relatively steady. It could be another sign investors are increasingly confident markets have made it past “peak tariff uncertainty,” as Jim Caron, an executive at Morgan Stanley Investment Management, put it, even if there’s likely plenty of turmoil around U.S. trade policy to come.