Global markets broken down Trump’s rates

Early indications of President Trump’s global consequences decision to impose Tariffs on Mexico, Canada and China arrived on Monday, since the stock markets in Asia fell sharply. The actions in Europe and the United States were ready to open lower.

The Nikkei 225 index of Japan and Kospi of South Korea fell more than 2.5 percent. The weighted index of the Taiwan stock exchange fell more than 3 percent. The markets in Continental China were closed on Monday for the Lunar New Year holidays. The actions in Hong Kong, where many Chinese companies trade, fell less than 1 percent.

As investors begin to evaluate the possible consequences of what could be the beginning of a disruptive commercial war, it is likely that the large export countries in Asia will be particularly affected. Companies are exposed to tariffs because they have made considerable investments in North America under agreements aimed at facilitating trade.

Some of the highest shared price decreases in Asia on Monday were among Japanese car manufacturers, which have pouring thousands of millions in supply chains in Canada and Mexico that could be affected by new taxes. Toyota Motor and Nissan Motor fell approximately 5 percent in trade on Monday, while Honda Motor fell almost 7 percent.

The semiconductor giant Taiwan semiconductor manufacturing company More than 5 percent fell in the negotiation on Monday. Mr. Trump had said on Saturday that he expected the tariffs to be placed in fries, as well as oil and gas at the end of this month.

During the weekend, Mr. Trump followed his promise to impose duty 25 percent in Canadian and Mexican goods, with the exception of Canadian energy products, which will be applied to 10 percent. Trump also imposed an additional tax to 10 percent on China’s assets.

In the United States, the perspective of reprisals causing a large -scale tariff war has increased fears between investors and economists that the inflationary pressure that persuaded the economy after the pandemic could return quickly.

Shortly after Trump’s weekend announcement, leaders in Canada and Mexico said they would respond to collecting retaliation tariffs on US assets. The weight and the Canadian dollar decreased when the US dollar was strengthened.

Concerns about a revival of inflation helped push treasure performance for two years, which is sensitive to changes in expectations of interest rates, slightly higher.

“The growing uncertainty of commercial policy will increase the volatility of the financial market and tension the private sector, despite the rhetoric in favor of the administration’s companies,” said Gregory Daco, chief economist of the consulting firm Ey-Parthenon.

China’s initial reaction, which as a great exporter It could be damaged More than the United States in a global commercial war was cautious: the Ministry of Commerce said it would challenge tariffs in the World Trade Organization.