Donald Trump’s threats of additional commercial prices against China, in addition to the 10% increase imposed earlier this month, contributed to a generalized stock market sale.
The feeling was already sour on the price forehead, given the spectrum of 25% of import duties during the EU slapBefore the American president confirmed his intention to aim for Canada, Mexico and China next week.
Trump said his 25% prices offered on Mexican and Canadian goods – one month delayed – would take effect on March 4 as planned, in parallel with 10% additional rights on Chinese imports.
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Beijing’s reaction was to threaten new reprisals, based on market fears that the Trump administration was likely to deepen the World Trade War.
Asia felt the most pain in equity after a decrease of 1.6% Poorly received results from Nvidia.
Technological actions were among people hammered, because the emphasis has passed to be more and more dominated by trade on Friday.
The Hang Seng in Hong Kong fell by more than 3%, while Nikkei in Japan dropped to a five -month hollow while demand has skyrocketed for the yen of refuge.
In Europe, the Dax in Germany and the French CAC were on the right track to rely on decreases observed on Thursday, the heavy dax of manufacturing losing a little less than 1% at open.
The United Kingdom may have spared Trump’s pricing threats – and even promised renewed trade negotiations at the meeting of Prime Minister Sir Keir Starmer in the White House Thursday – but the FTSE 100 still felt pain.
A drop of 0.4% was recorded at the start of negotiations.
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The main fear of investors is damage to the global economy of an extended and prolonged commercial struggle while Mr. Trump fights to guarantee American jobs thanks to the taxation of prices.
But a consequence of the increase in import costs due to the rights is the fact that they may turn back on American inflation, as costs are passed on.
Brent’s crude oil was down almost 1% to negotiate a barrel at $ 73.
Cryptocurrencies have taken the greatest hammering.
Bitcoin was 27% below its record in January at $ 79,740 and down 6% over the day.
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Trump told journalists in the oval office that he had decided to add the additional prices to China and to stick to the deadline for Canada and Mexico due to what his administration considers insufficient progress to slow down fentanyl flows in the country.
“There are ongoing discussions with the Chinese, Mexico and Canada,” said a White House official at the Reuters news agency.
“We have well known the question of migration, but there are still concerns about the other problem of the death of fentanyl.”
It was a story that was firmly rejected by the Chinese Ministry of Foreign Affairs.
A spokesperson said that China would take all the necessary measures to firmly protect its legitimate interest.
“The United States is once again using the fentanyl problem as a pretext to threaten China,” Lin Jian said at a regular press conference.
Commenting on the atmosphere of the exam market, Derren Nathan, head of research on actions in Hargreaves Lansdown, said:
“The only certainty of this saga is uncertainty, so keep an eye on developments by March 4.
“The next on the agenda is the reciprocal pencil rate on April 2 with other major American trade partners. The EU, in particular, will be at the point.
“A friendly start to speak with British Prime Minister Keir Starmer seems to have set the tone for a potential trade agreement with the United Kingdom, but without any indicated details, it was not enough to stimulate enthusiasm for the londed actions of London.”