Trump tariffs: markets brace for falls as Mexico and Canada hit back
Feb 02, 2025
Investors think the stock market will go down after some countries reacted to tariffs set by Trump. Technology stocks might drop by 1.2%. The Dow Jones and UK's FTSE 100 could also fall. Canada and Mexico hit back with their tariffs after Trump's orders. China and EU might do the same. This could hurt global trade. Canada and Mexico will have tariffs on US exports. China will also face tariffs. Canada and Mexico acted fast, while China plans to take legal action. Trump's tariffs might increase fuel prices. Bitcoin fell to a low. South Korea is monitoring the impact on its economy. Trump says tariffs don't cause inflation, but economists disagree. Lawrence Summers thinks the tariffs are harmful. Cars made in North America might become less competitive compared to Europe and Japan. These events could affect the international trade and stock markets. Some countries are preparing for a trade war. Investors are worried about the market's reaction.Tariffs are taxes on imported goods. Fears grow for global trade. Stocks might go down. Import tariffs might lead to higher prices for consumers. Global trade could be affected. North America could be less competitive. These events create uncertainty for the economy and stock market.