Wall Street on tenterhooks as Trump’s tariffs raise global trade tensions

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NEW YORK: US President Donald Trump has to fight global markets on Monday after the commencement of the trade war when he imposed revenue on Canada, Mexico and China, which damages economic growth and re -rule inflation. There is a risk of doing.

With Mexico and Canada – the top two trade partners in the United States – immediately retaliation and China say it will take “counter -measures”, the scene was set for a period of tumultuousness.

The markets were hitting a blow last week as the appearance of China’s Dippec AI model’s hit -tech stock, and the uncertainty around the Trump tariff, weighed over wider markets.

The threat of the global trade war can damage the US corporate profit and pressure inflation, potentially eliminating expectations of US interest rates, and further weakening currencies like Canada’s dollar and China’s yuan What can be done

“I think the markets are about to react,” said Mark Malik, the Chief Investment Officer in New York’s Seburt Financial, Mark Malik.

“So far the market has really been from Trump, but it may change and the market can challenge it for the first time,” he said.

In three executive orders, Trump imposed 25 % revenue on Mexico and most Canadian imports and 10 % on goods and 10 % from China, which will begin on Tuesday.

Canada said it would respond with 25 % revenue against US goods, compared to $ 155 billion, which will start with $ 30 billion on Tuesday and $ 125 billion after 21 days.

“This is negative for CAD, MXN and CNH,” said ATFX Global’s chief market analyst in Canada, Mexican and Chinese currencies, as well. There is also a threat to the overall. “

When the Asian Markets opens, it expects widespread tricks in the currencies when the hopes of the recovery were lifted.

In recent days, Canada’s dollar has been in the firing line, earning about a five -year -old less than dollar per dollar last week.

In a note published on Friday, JP Morgan estimates that if the United States collides with the country at 25 % commercial prices, Mexico’s pace will face a decrease of about 12 %.

Analysts also expect that when markets reopen on Monday, stocks and other high -risk assets are far from sale.

The Chief Investment Officer of Setira Financial Group, Jane Goldman said that the combination of high prices, the impact of inflation on inflation and the impact of the impact on the Federal Reserve policy will decrease.

Evercore ISI strategies said in a note that near S&P 500 near the all -time height, the index could move 3 % to 5 % in any direction in the short term.

Tariff pain

Barclass strategies had earlier estimated that the rates could create a 2.8 percent drag on the revenue of the S&P 500 company, which included the expected results from the retaliatory measures made by the targeted countries.

The executive order includes a supply for Trump to increase the size and scope of revenue for Trump if the affected countries try to retaliate.

Goldman Sex economists have estimated that tariffs across the board on Canada and Mexico will increase basic inflation by 0.7 % and hit the gross domestic products 0.4 %.

Consumer prices have a particularly sensitive area for investors, which is worried about rehabilitation in inflation, causing a decline in federal reserve rates.

Last week, Fed stopped its rate of coating, while Fed Chair Jerome Powell said that officials are waiting to see “which policies imposed” with the new president.

The European Central Bank’s policy maker Kalasgah said on Sunday that it expects new revenue to lead to inflation and interest rates in the United States that will weaken the euro = EBS.

Europe is also at risk of US prices.

“It’s just a matter of time before targeting the European Union,” said Jalil Alexandroch, a economist in London.

“In the meantime, the fact is that Canada is responding against US goods and offering prices is a sign of incoming things and shows the dangers of global trade.”