Asian markets grow as tariff war of Trump
US President Donald Trump slipped Asian shares on Monday morning after his promise Tariffs on Canada, Mexico and China,
Investors are working for a possible trade war that can earn the earnings of major companies and dent global growth.
Canada and Mexico have said that They will return with an anti -counterfeit tariff While China promised “related counselors” and vowed to challenge Trump’s move in the World Trade Organization.
Trump has said that tariffs are necessary to prevent the flow of illegal drugs and immigration in the US.
Hong Kong’s Hang Seng index was 1.3%, Japan’s Nikkei was 225 2.4% lower, South Korea’s Kospi was 3% and Australia’s ASX 200 was 1.8% lower.
The mainland Chinese market lunar remained closed for the New Year holiday.
Meanwhile, the US dollar was showing strength, a record against Chinese Yuan was growing up to high, while Canadian dollar reached its lowest level since 2003.
Tim Waterr, the main market analyst of financial services firm KCM trade, said, “There is a possibility of a long and long trade between the two largest economies in the world, causing investors to risk the table today.”
“The second concern for investors is which countries can be in Trump’s tariff hit list”.
Tariff, declared by the Trump administration over the weekend, targeted the United States three largest trading partners and the US President has threatened that he could not stay there.
Trump has vowed to put tariffs on the European Union “very soon”.
Charu Chanana, the main investment strategist at investment bank SASU, warned that while tariffs may be beneficial for the US economy in short term, they lead to significant risks in the long run.
He said, “Repeated use of tariffs will encourage other countries to reduce the dependence on the US, weaken the global role of the dollar.”
Trump has said that he will talk to the leaders of Canada and Mexico on Monday that about the tariff which are going to be implemented at midnight on Tuesday.
Both countries are facing a tariff of 25% on their exports, while Chinese goods will have an additional 10% tax.
