U.S. President Donald Trump says he will announce new tariffs on steel and aluminum imports, while fresh inflation is due out later in the week. Elsewhere, more corporate earnings are set to be released, with the quarterly reporting season now more than halfway done. Here's your look at what's happening in markets in the week ahead.
1. Trump's tariffs
President Trump's threats to impose new tariffs on the U.S.'s international trading partners will likely factor into investor sentiment this week.
While flying to the NFL's Super Bowl championship game over the weekend, Trump said that he would impose additional 25% tariffs on all steel and aluminium imports into the U.S.
Trump told reporters he will announce the tariffs on Monday, followed by reciprocal tariffs on Tuesday or Wednesday, with both duties to be effective immediately.
Trump’s tariff threat comes just days after his 10% duties against China took effect, with some analysts suggesting he may be adopting a tougher trade policy to help push through his broader international agenda. Beijing later retaliated with a slew of its own levies.
The president also said he would place 25% tariffs on Canada and Mexico last week, but postponed the levies on assurances from the two countries around border security.
Canada, Brazil, Mexico, South Korea, and Vietnam are the biggest exporters of steel to the U.S., government data showed. Canada is also by far the biggest exporter of aluminum to the U.S.
In his first term, Trump imposed 25% tariffs on steel and 10% tariffs on aluminum, but subsequently granted duty-free quotas to allies such as Canada, Mexico, and Brazil.
2. CPI looms large
Highlighting the economic calendar this week is the release of crucial U.S. inflation data on Wednesday.
The gauge is projected to show that headline consumer price growth cooled on a month-on-month basis in January and equaled December's annualized pace.
So-called core inflation, which strips out more volatile items like food and fuel, is tipped to accelerate slightly from the prior month.
The numbers will be closely monitored by the Federal Reserve, which has indicated that it will take a wait-and-see approach to future potential interest rate reductions, due in part to possible signs of a stalling slowdown in inflation. In December, consumer prices rose by 2.9% year-on-year, above the central bank's target level of 2%.
3. Powell testimony
Fed Chair Jerome Powell is due to testify before Congress on Tuesday and Wednesday, meaning he will have the chance to provide almost real-time feedback on the inflation data.
Powell may also be questioned on a host of other topics that have arisen since Trump's return to the White House, including the implications of the president's tariff plans and his recent comments on America's soaring debt pile.
On Sunday, Trump said the White House is investigating U.S. Treasury debt payments for potential fraud and posited that America's $36.2 trillion debt pile may not be that big. The statement raised some concern that the U.S. could choose to renege on U.S. debt obligations -- an event that may upend global financial markets.
Powell has previously said the Fed was in no rush to cut interest rates after bringing down borrowing costs several times in 2024, especially as policymakers flag uncertainties around the impact of Trump's policy changes on the broader economy.
4. Earnings ahead
Markets will also be eyeing a fresh batch of corporate earnings this week, with the latest quarterly reporting season over halfway finished.
Burger chin McDonald's (NYSE:MCD), soft drinks maker Coca-Cola (NYSE:KO), and digital communications group Cisco Systems (NASDAQ:CSCO) are all set to unveil returns in the days ahead.
The prior weeks have seen major reports from a raft of tech industry titans, with investors paying particularly close attention to their plans for capital expenditures on artificial intelligence in the wake of the emergence of a low-cost AI model from Chinese start-up DeepSeek.
Since traders have already had a chance to digest these reports, there may not be a "near-term catalyst" for markets from earnings until AI-darling Nvidia (NASDAQ:NVDA) delivers its figures later this month, according to analysts at Charles Schwab (NYSE:SCHW).
5. Gold touches new record
Gold prices touched fresh record highs on Monday, buoyed by safe haven demand after Trump announced more trade tariffs.
Spot gold had moved up by 1.4% to $2,899.26 per ounce by 04:07 ET (09:07 GMT). Analysts at UBS quoted by Reuters said the price of the yellow metal could continue heading up to $3,000 per ounce.
While gold was sitting on strong gains and record highs notched over the past week, bigger gains were somewhat limited by resilience in the U.S. dollar, with investors bracing for relatively elevated interest rates in the coming months.
Analysts and Fed officials have warned that Trump’s tariffs, which will be borne by U.S. importers, could underpin inflation and give the Fed less impetus to cut interest rates.
