Global markets slide as Trump’s tariffs spark trade war
Global markets faced heavy selling pressure as President Donald Trump’s new tariffs took effect this week.
The U.S. imposed 25% tariffs on Canada and Mexico and 10% on Chinese imports.
In response, Canada announced retaliatory duties on $105.5 billion worth of U.S. goods.
China condemned the move and vowed to take countermeasures, including filing a complaint with the World Trade Organization.
The EU also warned of a strong response, saying it would “act firmly” if Trump imposed tariffs on European goods.
Wall Street reacted negatively with the S&P 500 falling 0.5%, the Nasdaq 0.28%, and the Dow Jones 0.75%.
Inflation worries grew as U.S. personal consumption expenditures rose 0.7% in December, surpassing expectations.
The Federal Reserve signaled a cautious approach to monetary policy, fearing inflationary pressures.
Energy and auto stocks were hit hard.
Chevron’s shares tumbled 4.5%, while Exxon Mobil fell 2.5%.
Ford dropped nearly 1%, and cryptocurrencies slumped — Bitcoin lost 4% and Ethereum plunged 15%.
European markets had mixed reactions, with Germany’s annual inflation falling to 2.3%.
The DAX 40 edged up 0.02%, while the FTSE 100 gained 0.31%.
Asian markets slumped, led by a 3% drop in Japan’s Nikkei 225.
China’s Caixin manufacturing PMI came in at 50.1, signaling weaker growth.
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