Live: President Trump signs tariffs on Canada, Mexico, China

As a crucial moment for President Trump’s agenda approaches, markets are bracing for the potential fallout from tariffs.

But the Trump administration may also be bracing for the potential fallout from the stock market — a favorite scoreboard of Trump’s — as it weighs its options.

On a new episode of Capitol Gains, Yahoo Finance’s Rick Newman, Ben Werschkul, and Seana Smith discuss how tough Trump will get on tariffs and how that dynamic is affecting markets.

“I think the shock at this point would be if Trump really did impose significant tariffs — at least, I don’t think Wall Street is pricing that in,” Newman said.

However, Werschkul noted that markets may be underestimating how much Trump wants to push through heavy tariffs.

“There’s a lot of issues that [Trump] talks about that you kind of get the sense that he’s not personally invested in,” Werschkul said. “That’s not true with tariffs. It’s a sort of throughline of his career.”

Capital Economics Group chief economist Neil Shearing also weighed in.

“My sense is tariffs are coming, but I don’t think they’ll be quite on the same scale that the president has talked about,” Shearing said, adding, “for obvious reasons, and that is that it would tank the market.”

See the full episode of Capitol Gains here.