US President Donald Trump’s imposition of tariffs on Canadian, Mexican, and Chinese goods sent shockwaves through global markets, causing stocks to decline. European and Asian shares fell, with Germany’s DAX dropping 1.8% and France’s CAC 40 losing 1.1%.
China retaliated by increasing its own tariffs on US farm exports by up to 15%. This move is expected to further harm US farmers, who had been counting on export sales to China.
The impact of the trade tensions was evident in the markets, with the S&P 500 rising just 0.1% and the Dow Jones Industrial Average remaining unchanged. Asian markets also suffered losses, with Tokyo’s Nikkei 225 dropping 1.2%.
Analysts warn that the current situation is a “lose-lose” for all parties involved, as no one gains from the trade tensions. The US market had been boosted by strong profit reports and hopes for economic growth, but those hopes have been dashed.
The slump in global markets has also hit technology stocks hard, with Nvidia down 8.8% and Tesla losing 2.8%. Oil prices fell, and the US dollar weakened against other currencies.
As the trade war escalates, investors are bracing themselves for more volatility.
Source: https://apnews.com/article/stocks-markets-rates-tariffs-trump-1ca865fa6abcca716b5e7c9281ea6e07