President-elect Donald Trump said that will impose additional tariffs of 10% on products from China and 25% on all products from Mexico and Canadaclaiming that the levies are necessary to clamp down on migrants and illegal drugs flowing across US borders.
In posts on his Truth social network on Monday, Trump claimed that China had not kept its promises to institute the death penalty for fentanyl traffickerswriting that “drugs are entering our country, mainly through Mexico, at levels never seen before.”
“Until such time as they stop, we will charge China an additional 10% Tariff, on top of any additional Tariffs, on all of their many products coming into the United States of America,” Trump said.
In another post, The incoming president also promised to hit neighbors Mexico and Canada with a 25% tariff. on “ALL products,” saying he would sign an executive order to that effect on his first day in office.
“As everyone knows, thousands of people are crossing Mexico and Canada, taking crime and drugs to levels never seen before,” he said. “This Tariff will remain in effect until Drugs, particularly Fentanyl, and all Illegal Aliens stop this Invasion of our Country!”
The impact on European stock markets
The Mexican peso fell more than 1% in reaction to headlines about the proposalwhile the Canadian dollar fell by about 0.5%. The Chinese yuan fell in the currency market.
On the other hand, the European car manufacturers fell this Tuesday in the stock market after the opening of the stock market session after the promises made in the last hours of the president-elect of the United States, Donald Trump, to impose tariffs of up to 25% on imports from Canada and Mexico and an extra 10% to the Chinese to stop immigration and the entry of drugs into the country.
The group led by the Portuguese Carlos Tavares, Stellantis, led the falls by losing 12.56 euros per share with a decline of more than 4%, while Volkswagen, exposed to a lesser extent to its business in North America, registered a downward movement of more than 2.1%, up to 80.62 euros per title.
In the case of Renault, the manufacturer led by Luca de Meo was the protagonist of the negative tone of the CAC 40 index despite maintaining a stable price of 39.82 euros per share. In the luxury segment, Porsche fell 2.1% on the Frankfurt Stock Exchange after falling below 58 euros per share, while BMW also lost more than 2%, trading at 68.42 euros per share at 10:21 a.m.
For its part, the index that brings together European automobile companies and suppliers, the Stoxx Europe 600 Automobiles & Parts, fell 2.2%, to 525.65 points.
“Trump links these tariffs to the ‘permissiveness’ of these governments with drug trafficking, specifically fentanyl, which is why he also indicated that he will withdraw them as soon as it is controlled. The ‘notice’ was initially negatively received on the Asian stock markets this morning, although the reaction has not been too dramatic, closing its main indices in a mixed way and without major changes”these experts add. Asian stock markets finally closed down 0.8%.
Where the falls are being noticed more is in the European bags. However, Link Securities sends a message of calm: “This increase in tariffs seems to be a one-off issue, it does not fail to remind investors that Trump, during the election campaign, threatened on multiple occasions with the widespread implementation of tariffs on “U.S. imports.”
“YesAlthough we are convinced that there will be nuances, depending on the countries/regions, whenever tariffs are discussed, investors in Europe react with fear“, these analysts conclude.
Source: Ambito
I am an author and journalist who has worked in the entertainment industry for over a decade. I currently work as a news editor at a major news website, and my focus is on covering the latest trends in entertainment. I also write occasional pieces for other outlets, and have authored two books about the entertainment industry.
