Technology Technology:Donald Trump has unveiled plans to impose massive tariffs on imports from Canada, Mexico and China, sending international markets into shock. The announcement sent shockwaves across the financial landscape, sending the US dollar to new highs.
Trump has pledged that upon reassuming the presidency on January 20, he will impose a 25% tariff on all Mexican and Canadian imports. His message on social platform Truth Social stressed on cracking down on the alleged open border policies of these countries. Chinese imports are also under target, with an additional 10% duty being imposed.
This tariff plan has prompted a nearly 2% appreciation of the US dollar against the Mexican peso and a significant surge against the Canadian dollar, reaching levels unprecedented in years. Meanwhile, Asian stock markets fell, with major indices in Japan, Australia and South Korea falling. Despite early optimism surrounding the nomination of Scott Besant as Treasury Secretary, Trump's decisive stance is overshadowing expectations of a moderate economic outlook.
Fears of a potential trade war have already depressed the market values of European automotive giants such as Stellantis and Volkswagen. European markets are restless; The STOXX 600 index fell, and investors worry that Trump's tariff strategy could extend to Europe.
The strength of the US dollar, coupled with trade concerns, also weighed on copper prices, with significant declines recorded on global exchanges. While some investors view Trump's strategy as strategic, using tariffs as leverage for broader US interests, the global economic outlook remains tense.
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