The stock fell on Monday because the Wall Street was finally provided for the influence of Sudden new tariff We are afraid that new import duties may cause a trade war that may be ordered by President Trump and may reduce corporate interests. Learn consumer spending。
However, the loss was alleviated after Trump said on Monday morning that he would pause for one month. His announcement, which was made in his true social app, came after Mexico’s President Claudia Shaeinbaum agreed to send 10,000 soldiers to the border.
Dow Jones’s industrial average fell 1.5 % to 178 points (0.4 %) 44,366 in the morning transaction. Broad -based S & P 500 lost 0.8 % and recovered after 1.9 %, but Tech Heavy Nasdaq Composite Index dropped 1.1 to 1.1 after dropping 2.5 %.
On Saturday, Mr. Trump signed a presidential order to impose 25 %. Tax duties related to imports Add 10 % of taxes from Canada and Mexico to products from China. A few hours later, Canada responded with its own retaliation tariffs, but Mexico also plans to issue tariffs in the United States, and the potential from the nearest trade war with the two trade partners in the United States. Added radioactive drops.
Trump’s announcement has prompted some economists to predict that strict new tariffs can reduce US economic growth and cause an increase in unemployment.
“This development will be faster than expected in the baseline prediction, and will downgrade the global forecast in 2025,” said Oxford Economics in his research note on February 3. “The latest tariff set will lead to a decrease in the growth rate of this year’s GDP in Canada, Mexico, and the United States, and a higher inflation in Canada, Mexico, and the United States.”
Canada initially ordered a 25 % retaliation tax on imports in the United States, including beverages, cosmetics, and paper products, equivalent to $ 30 billion of the Canadian dollar ($ 20 billion).
The second list of products, including passenger cars, trucks, steel, aluminum products, specific fruits and vegetables, beef, pork, dairy products, and aerospace products, will be released soon. These products were estimated to have a value of 125 billion Dad ($ 85 billion).
Before Mr. Trump announced the suspension of customs duties on imports of Mexico, the government stated that it would impose retaliation tariffs without mentioning anything.
The inventory of the automaker will fall
The car manufacturer’s shares were a huge hit on Monday because Wall Street evaluated the impact of Trump’s tariff on the automotive industry. Americans are increasingly purchasing cars built in Canada or Mexico, or using parts imported from those countries.
For example, Volkswagen has raised 43 % of vehicles through Mexico, 22 % General Motors and 15 % Ford.
General Motors fell 5.5 %, Ford lost 3.9 %, and Tesla fell 5.4 % in early transactions.
Corona Beer and Contellation Brands, a manufacturer of Robert Mondavi Wine, slid 4.7 % after saying that Canadian officials would delete American alcohol brands from government shelves.
The manufacturer also occurred early on Monday. Deer & Company, a agricultural equipment manufacturer, fell 3.1 %, but the caterpillar has fallen by about 2.9 %.
Mr. Trump’s promise to lead -up to elections was part of the reasons for returning the number of interest rates expected to be imposed this year. Originally, the Central Bank predicted four reductions, but the number was reduced to two at the December meeting.