Donald Trump’s threats to impose additional tariffs on China led to a sell-off in global markets. The announcement of 25% tariffs on Mexico and Canada added to investor concerns, as markets in Asia and Europe faced declines. Significant drops were observed in oil prices and cryptocurrencies such as Bitcoin, further heightening fears of a global trade war and its economic implications.
President Donald Trump’s recent threats of imposing additional trade tariffs on China, following an earlier 10% increase this month, have triggered a significant sell-off in global stock markets. Investor sentiment has soured further, exacerbated by the looming prospect of 25% import duties on European Union goods, alongside confirmed plans to target Canada and Mexico over the upcoming weeks.
Mr. Trump specified that the intended 25% tariffs on goods from Mexico and Canada would commence on Tuesday, March 4, as previously scheduled, along with an extra 10% levy on Chinese imports. In response, Beijing warned of potential retaliation, reinforcing the perception that the Trump administration is instigating a global trade conflict.
Asian markets experienced the most significant declines, with Hong Kong’s Hang Seng index plummeting over 3%, and Japan’s Nikkei falling to a five-month low as investors flocked to the safe haven of the yen. European indices, particularly Germany’s DAX and France’s CAC, were projected to continue their downward trend from the previous day, with the DAX expected to open down more than 1%.
Although the UK is not directly threatened by tariffs, the internationally-focused FTSE 100 index was expected to experience a decline of 0.7% at the start of trading. Investor anxiety is largely centered around the potential damage to the global economy due to an extended and widespread trade dispute, leading to declines in various assets, including oil and cryptocurrencies.
Brent crude oil prices dipped nearly 1%, settling at $73 per barrel, while cryptocurrencies faced substantial losses. Bitcoin, for example, was down 27% from its January peak of $79,740 and experienced a 6% decline on the day. The unfolding situation is being closely monitored as it develops.
In summary, President Trump’s escalation of tariffs on China and the potential imposition of duties on Canada and Mexico have sparked fears of a global trade war, resulting in widespread declines across equity markets and significant declines in oil and cryptocurrency values. The situation remains fluid, with ongoing concerns about its impact on the global economy. Investors are urged to stay informed as developments unfold.
Original Source: news.sky.com
