The stock markets have been declining since U.S. President Donald Trump confirmed on Monday the imposition of tariffs against Canada, Mexico, and China.
Investor Concerns
Trump’s protectionist measures have raised concerns among investors. Some hoped that the deadline might be postponed again or that tariffs could be reduced, but the American president dashed those hopes.
The Dow, Nasdaq and the S&P 500
Tuesday, the Dow Jones had decreased by 1.65%. The Nasdaq index fell by 1.11% and the S&P 500 by 1.51%.
S&P/TSX
S&P/TSX, the main index of the Toronto Stock Exchange, has decreased by more than 1.7%.
Europe
In Europe, the German Dax fell by 3.54%, the CAC 40 in Paris by 1.85%, London by 1.27%, and Milan by 3.41%.
The Oil Market
The oil market, weighed down by the prospect of increased production but insufficient demand, is also a victim of this trend.
The automotive sector in Europe
The automotive sector in Europe, which counts the United States among its key partners, is one of the first to suffer from Trump’s protectionist measures. In Paris, Stellantis plummeted by 10.76%, Renault by 4.61%. In Germany, BMW lost 5.89%, Mercedes 4.81%, and Volkswagen by 4.13%.
The value of bitcoin
The value of bitcoin, particularly volatile, has also decreased by 13.52%.
The European Defense Sector
The European defense sector is experiencing growth. Indeed, several states are increasing their investments in defense in response to the military disengagement of the United States in Ukraine and Europe.
The Satellite Sector in Europe
Due to the growing needs for military surveillance and communication, the satellite sector in Europe is also benefiting from this momentum.
Tariffs imposed on Canada, Mexico, and China
Imports from Mexico and Canada are now subject to a 25% tariff, except for Canadian hydrocarbons, which are subject to a 10% tariff. Products from China are subject to a 20% customs duty.
Canada
In response, Canada imposed tariffs of 25% on certain products from its southern neighbor, totaling $155 billion (CND).
China
As for China, it responded with tariffs of 10% and 15% on a range of agricultural products, such as chicken and soybeans.
Mexico
Mexico announced that it would reveal its punitive measures later.