Share falls ease after Trump tariff turmoil

Business LIFESTYLE


Over the weekend, Trump ordered tariffs of 25% on exports from Canada and Mexico to the US, which are due to come into effect at midnight on Tuesday,

Chinese-made goods will face a 10% levy, in addition to existing tariffs.

The moves, which Trump tied to concerns about the flow of illegal drugs and migrants into the US, target the United States’ three largest trading partners and threaten major disruption in some of the world’s biggest economies.

Canada and Mexico said they would hit back with retaliatory tariffs while China promised “corresponding countermeasures” and vowed to challenge Trump’s move at the World Trade Organization.

But in a sign of how swiftly the circumstances might change, Trump and Mexican President Claudia Sheinbaum said on Monday that she had agreed to send 10,000 troops to the border and the tariffs would be on hold for one month, as the two sides continue to negotiate.





Many are still bracing for wider tensions, after Trump said on Sunday that he would “definitely” impose tariffs on the EU, although he said while the UK was “out of line”, a deal could be worked out.

On the Dow, which tracks 30 high-profile companies meant to be representative of the economy, Nike and Apple, which both rely on China for manufacturing, were among the hardest hit, with Apple down more than 3%.

Elsewhere, carmakers such as Tesla and General Motors also saw share prices drop.

In Japan, Toyota shares fell 5% and Honda sank 7.2%, while in Europe shares in VW and Stellantis – whose brands include Chrysler, Citroen, Fiat, Jeep and Peugeot – were down roughly 4%.

Shares in drinks maker Diageo – which exports tequila from Mexico to the US – ended the day down 1.9%, trimming earlier losses.

https://www.bbc.com/news/articles/c70kn4676p4o,

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