Since President Donald Trump was sworn two weeks ago, US stocks have been at the lowest level, and other global financial markets have been depressed after ordering Canada, Mexico, and China. The person responded to the threat of expanding tariffs on the European Union. good.
Monday benchmark S & P 500 fell 1.7 % with the largest daily loss of this year, with a series of accusations of Asia and Europe for the fear of economically damaged trade war.
Mr. Trump’s tariff on the three largest US trade partners that will come into effect on Tuesday can cause short -term pain in Americans, but “in the long term, the United States is almost all in the world. It was torn by the country. “
In the latter half of Monday, Mr. Trump stopped a new tariff in Mexico one month later after agreeing to strengthen the border with 10,000 national guards and stop the illegal drug, especially Fentanyl flow. He said.
Mexico’s President Claudia Shainbaum said that the agreement also included US commitments to prevent trafficking of Mexico’s powerful weapons. The two leaders talked over the phone on Monday, a few hours before our tariffs in Mexico, China and Canada.
According to Trump, the two countries will be engaged in further negotiations using a one -month suspension.
After returning from Florida’s Mar Lago Estate, Trump spoke on Washington DC on Sunday, indicating that the EU in 27 countries would come next on the launch line, but never said.
“They do not have our car. They don’t take our agricultural products. They don’t get anything, and we take everything from them,” he said to the reporter. I talked.
The EU leader said that it had a meeting at an unofficial summit held in Brussels on Monday. Not only did the United States impose tariffs, but if he sought negotiations and negotiations, Europe was ready to fight back.
Trump suggested that the EU left in 2020, who escaped tariffs and said, “I think I can solve it.”
The United States is the largest trade and investment partner of the EU. According to the 2023 Euro Stat Data, the United States has a deficit of 1558 billion euros ($ 161.6 billion), and the EU has been offset by surplus of 1444 billion euros ($ 107.6 billion) in product trade. I did it.
KAJA KALLAS, the director of the EU foreign policy, states that there is no winner in the trade war, and when it breaks out between Europe and the United States, “China is laughing on that side.”
The market is disappointing
Mr. Trump talked to Canadian Prime Minister Justin Toldeau on Monday and said he would do it again at 3:00 pm (20:00 GMT).
Both Canada and Mexico have announced retaliation tariffs in the United States.
Economist said the Republican President’s plan to impose a 25 % tariff on Canada and Mexico, and that 10 % of tariffs in China will slow down the world’s growth and increase Americans.
The fear is that these tariffs are raised to the price of food, electronic devices, and all kinds of other types of items in the US households, and are up to the US inflation rate, which is mostly decelerated at the peak almost three years ago. It is pressing pressure. With stubborn and accelerating inflation, the US federal preparation system could no longer reduce interest rates and began to improve the domestic economy in September.
Trump claims that tariffs are needed to suppress the trafficking of immigrants and drugs and promote domestic industries.
The reaction of the financial market on Monday reflects concerns about radioactive drops from the trade war. Tokyo stocks have fallen almost 3 %, and the Australian benchmarks (often the Chinese market agency) decreased by 1.8 %. The market of mainland China was closed on the new year of the moon.
During lunch in Europe, German DAX index decreased by 1.8 %, French CACs down 1.9 % and British FTSE 100 decreased by 1.5 %.
All the Chinese dollar and Mexico pesos in China have fallen against the soaring dollar. Since Canada and Mexico are the largest sources for US crude oil imports, US crude oil prices have risen 1 % or more, and gasoline futures have risen by nearly 3 %.
Trump’s tariffs will cover almost half of the U.S. imports, and the United States will require more than doubling its own manufacturing production to cover the gap -will not be executed in the near future. The analyst wrote the task.
Other analysts have said that customs duties could fall into a recession between Canada and Mexico, which could cause high inflation, stagnant growth, and unemployment.
In Europe, German Bank economists have stated that TRUMP has been hit by 0.5 % by gross domestic production (GDP) if TRUMP imposes 10 % of the EU.
State emergency
The White House fact seats did not give detailed what Canada, Mexico, and China needed to grace.
Trump has promised to maintain sanctions until the state’s emergency, fatal opioid, and the national emergency for illegal immigrants to the United States.
China said that Fentanyl American issues would not only take other measures, but also open the doors for discussions, as well as disagreements in the World Trade Organization.
Canada said that it would take legal measures under related international organizations to disagree with tariffs.
Automakers will be hit by the new tariffs of vehicles built in Canada and Mexico, and will burden the vast supply chain where parts can cross the border several times before the final rally. 。 Ford and General Motors’ stocks have decreased by 5 % to 5 %.
Volkswagen, Porsche, Stantis, and Daimler trucks all decreased by about 5 % to 6 % on Monday European transactions.
An investment bank Analyst has estimated that VW’s earnings of € 8 billion ($ 8.2 billion) will be influenced by tariffs and € 16 billion ($ 16.5 billion).
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