The market was hit in global shares as Trump Tariff. Business and economy news
Stocks in the United States are at its lowest level as President Donald Trump was sworn in two weeks ago, and other global financial markets slipped after ordered tariffs on Canada, Mexico and China, while world leaders by the European Union To expand the tariffs for their dangers responded, as well.
Benchmark S&P 500 fell on a string of Asian and European Beras on Monday on a string of the biggest daily damage of the year on a string of the year’s biggest daily damage on the bell.
Trump stated that his tariffs on the three largest American trading partners, which were to be effective on Tuesday, could have some short -term pain, but, “Long -term, America is exploded by almost every country in the world. “
Later on Monday, Trump said he would stop the new tariff on Mexico on Mexico for a month, when Mexico to stop the flow of illegal medicines with 10,000 national guard officers to strengthen its border with the US. Agreed, especially fentenell.
Mexican President Claudia Shinbam said the agreement also included an American commitment to prevent high -power weapons smuggling in Mexico. The two leaders spoke over the phone on Monday, to be effective a few hours before the US tariff on Mexico, China and Canada.
Trump said that the two countries would use the month’s stagnation to engage in further conversations.
Speaking at Washington, DC, after returning from his Mar-e-Lago Estate in Florida on Sunday, Trump indicated that the 27-Nation would be next in the European Union Firing Line, but when not said.
“They do not take our cars. They do not take our agricultural products. They don’t take almost anything, and we take everything from them, ”he told reporters.
At an informal summit in Brussels on Monday, European Union leaders said that Europe would be ready to fight back if the US imposes tariffs, but is also called for the cause and negotiations.
Trump indicated that the Britain, which left the European Union in 2020, could be spared the tariff, saying: “I think a task can be done.”
The US is the largest trade and investment partner of the European Union. According to 2023 Eurostat data, America’s trade had a loss of 155.8 billion euros ($ 161.6bn) with the US with the European Union, offset by surplus by surplus of 104 billion euros ($ 107.6BN) in services.
Kaza Kalas, head of the European Union Foreign Policy, said that there was no winners in the trade war and if someone broke between Europe and the United States, “Laughter is China on one side.”
Market swoop
Trump said on Monday that he spoke to Canadian Prime Minister Justin Trudeau and would do so again at 3 pm (20:00 GMT).
Both Canada and Mexico announced a counterfeit tariff on the US.
Economists said that the Republican President’s plan to impose 25 percent tariffs on Canada and Mexico and impose 10 percent on China will slow down global development and increase prices for Americans.
The fear is that these tariffs will raise prices on grocery items, electronics and all other types of goods for American homes, which pressurize the US inflation upwards, which is about three years ago since its peak It is slowing down to a great extent. Stubbornly accelerating high or inflation can keep the US Federal Reserve away from interest rate cuts, which began to promote domestic economy in September.
Trump has argued that tariffs are needed to inspire immigration and drug trafficking and domestic industries.
On Monday, the financial market response showed concerns about the decline from a trade war. Shares in Tokyo terminated the day around 3 percent and Australia’s benchmark – often a proxy trade for Chinese markets – 1.8 percent fell. The mainland Chinese market was closed for the lunar new year holidays.
Regarding lunch in Europe, Germany’s DAX index was 1.8 percent, France’s CAC 1.9 percent and Britain’s FTSE 100 1.5 percent below.
Chinese yuan, Canadian dollars and Mexican Peso all slipped against a mounting dollar. With the top sources of US crude oil imports with Canada and Mexico, US oil prices increased by more than 1 percent, while petrol futures increased by about 3 percent.
Trump’s tariff American will cover about half of all imports and the United States will need more than double the manufacturing output to cover the gaps – an incomplete work in the near period, written by ING analysts.
Other analysts stated that tariffs may throw Canada and Mexico into recession and trigger at home “stagflation” – high inflation, stable growth and elevated unemployment.
In Europe, the economists of the Duthe Bank stated that they were currently factoring the GDP in a 0.5 percent hit, imposing them 10 percent tariffs on the European Union.
National emergency
The White House Fact Sheet did not give any details on what to do to win a reprive to Canada, Mexico and China.
Trump promised to place sanctions at this place, as long as he described a national emergency on the Phantenl, a deadly opioid, and illegal immigration at the end of the US.
China called the Phantenile America problem and said that it would challenge tariffs in the World Trade Organization and take other counters, but will also leave the door open for talks.
Canada said it would take legal action under the international bodies concerned to challenge tariffs.
The automekar will be particularly hard hit with new tariffs on vehicles manufactured in Canada and Mexico, with a burden on a huge regional supply chain in which parts can cross the border several times before the final assembly. The shares of Ford and General Motors fell from 4 percent to 5 percent.
The shares in Volkswagen, Porsche, Stalentis and Daimler trucks fell by about 5 percent to 6 percent in European trade on Monday.
Analysts of Investment Bank Stifel estimated that VW’s revenue would be affected by 8 billion euros (8.2BN) tariffs and 16 billion euros ($ 16.5bn).
