Stock markets fall after US tariffs spark trade war fears

Stock markets have declined all over the world after a tariff by President Donald Trump was brought into the goods entering the United States from China, Canada and Mexico.

Trump imposed a 25 % tariff on imports from Canada and Mexico, and 20 % tariffs against China.

Canada and China have announced their own taxes on American goods, while Mexico is said to have “emergency plans”, which raised fears of the full trade war.

The three main securities market indicators in the United States were drowned after the news, while the FTSE 100 index of the largest listed companies in the United Kingdom was sharply opened on Tuesday, and stock markets in Asia decreased.

Analysts have warned that customs tariffs would increase prices for American families and can have an impact on consumers worldwide, including the United Kingdom.

Trump threatened to impose customs duties, which is an added tax into a product when a country – in Canada, Mexico and China in response to allegations is the unacceptable flow of illegal drugs and illegal immigrants to the United States.

But Canadian Prime Minister Justin Trudeau said that his country is responsible for less than 1 % of fentanel enters the United States and will take revenge by 25 % of US commodities worth $ 150 billion.

China has quickly declared its counter-measures, which includes a 10-15 % tariff for some American agricultural commodities, including wheat, corn, beef and soybeans. Mexico is expected to announce its response later.

In the United States, Dow Jones closed 1.5 % lower and the S&P 500 ended today by 1.8 % on Monday, while in Asia on Tuesday, Nikkei 225 fell by 1.2 %, and the Chinese Hang Seng index fell 0.3 %.

FTSE 100 in London was lower in early trading while the main stock exchanges in Germany and France fell.

Andrew Wilson, of the International Chamber of Commerce, said: “What we see is the largest effective increase in American definitions since the 1940s – with severe economic risks related to that,” said Andrew Wilson, of the International Chamber of Commerce.

“The initial market movements completely reflect that we are now entering into a very risky scenario for global trade and global economy,” BBC Radio 4 said today.

He said that Yale University predicted that these measures may cost American families in the region of $ 2000 this year alone.

“In terms of consumers, you are more likely to search in the short term, increasing in prices with companies passing through some of these prices on the consumer,” Ella Huxa, the Newton’s fixed income, to invest in investment management.

“It is a major challenge to British business due to the historical ties linking the United Kingdom and the United States. [We are] Seeing something like dismantling an alliance through the Atlantic between the United States and Europe.

“However, there is a real feeling of hope for a stronger relationship in the United Kingdom and China.”