New York (Reuters) – President Donald Trump ordered 25% prices on Canadian and Mexican imports on Saturday and 10% on Chinese goods starting Tuesday to tackle what he calls a national urgency of fentanyl and illegal immigration flowery in the United States.
Mexico and Canada, the two main American trade partners immediately judged reprisal rates, while China said it would challenge Trump’s decision to the World Trade Organization and take others ” measures”.
Here are some comments of strategists and investors:
Holger Schmieding, chief economist, Berenberg Bank, London
“There was a certain hope that there would be a last -minute negotiation breakthrough with Canada, especially. So, I would say that it is a modest disappointment for the markets, especially for the Canadian currency.
“For Europe, it is a slight negative in the sense that negotiations (from Canada) with Trump did not give a last -minute result and that the European response was to negotiate.
“But still, we had this relief since Trump came to the post that he did not start major prices, that we (Europe) are apparently not his main priority.
“And therefore the global story maintains that we hope to avoid major disruptive prices by offering concessions on A) more military expenditure at b) import much more natural gas from the United States”
Marchel Alexandrovich, economist, Saltmarsh Economics, London
“It is only a matter of time before the EU was targeted. In the meantime, the fact that Canada responds and sets up prices against American goods is a sign of things to come and demonstrates the risks of global trade.
“Trade tensions are undoubtedly a wind from GDP growth, but higher inflation will give a dilemma to central banks in terms of reception. So there is a lot of information there to process the markets.
“But, winds that are stronger in growth mean that the ECB (European Central Bank) will probably be faced with even more pressure to facilitate monetary conditions.”
Nick Twidale, chief market analyst, ATFX Global, Sydney
“I think we will see a problem (Monday) in the respective currencies. There was still a certain hope that there would be a form of reprieve, but it was not awake, so we will see the markets react. ‘is negative for CAD, MXN and CNH, as well as the overall risk.
“The actions will open on the rear foot of the Asian session, then we will monitor the press chests again for new updates.”
Nick Ferres, CIO, Management of Vantage Point assets, Singapore
“My feeling is to discolor any negative reaction to open in Asia, especially since there is room for negotiation. The prices are probably not as bad as they are fearing, especially on China.”