BBC Business Reporter
Global actions have sank, one day after President Donald Trump announced new rates that should increase prices and weigh on growth in the United States and abroad.
The stock markets in the Asia-Pacific region fell for a second day, on the heels of the American S&P 500, which had its worst day since Covid crushed the economy in 2020.
Nike, Apple and Target were among the big names of consumers the worst blow, all flowing by more than 9%.
At the White House, Trump told journalists that the American economy “would explode” thanks to the minimum rate of 10% that he planned to slap global imports in the hope of stimulating federal income and bringing American manufacturing home.
The Republican President plans to hit products from dozens of other countries with much higher samples, including business partners such as China and the European Union.
China, which faces a global rate of 54%, and the EU, which faces 20%tasks, both swore reprisals on Thursday.
French President Emmanuel Macron has called for European companies to suspend the investment planned in the United States.
Prices are taxes on goods imported from other countries, and Trump’s plan he announced on Wednesday would increase such rights at some of the highest levels for over 100 years.
The World Trade Organization said it was “deeply concerned”, the estimate of commercial volumes could shrink by 1% this year.
Merchants are concerned that prices can stir up inflation and get growth.
At the start of negotiations at the start of negotiations, the Japan Nikkei 225 reference index fell 1.8%, Kospi in South Korea was about 1%lower and ASX 200 in Australia fell by 1.4%.
Thursday, the S&P 500 – which follows 500 of the largest American companies – plunged 4.8%, which allowed about $ 2 of value.
The Dow Jones closed about 4% lower, while the Nasdaq dropped around 6%. The sale of American actions has been taking place since mid-February in the midst of fears of the trade war.
Earlier, the FTSE 100 sharing index in the United Kingdom has dropped by 1.5% and other European markets also dropped, echoing Japan decreases in Hong Kong.
At the White House on Thursday, Trump doubled on a high stake-challenges aimed at reversing the decades of liberalization led by the United States which has shaped the order of world trade.
“I think it’s going very well,” he said. “It was an operation like when a patient is operated on, and it is a great thing. I said it would be exactly like that.”
He added: “The markets will explode. The stock will explode. The country will explode.”
Contrant of white house aid which insisted that the new prices were not a negotiation tactic, Trump reported that it could be open to an agreement with business partners “if someone said that we are going to give you something so phenomenal”.
On Thursday, Canada Prime Minister Mark Carney said that the country would retaliate with a 25% levy from vehicles imported from the United States.
Trump last month imposed prices of 25% in Canada and Mexico, although he did not announce any new function on Wednesday against North American business partners.
Companies are now faced with swallowing the price cost, working with partners to share this burden or transmitting it to consumers – and risking a drop in sales.
This could have a major impact because American consumption spending amounts to around 10% to 15% of the world economy, according to certain estimates.
While the actions dropped Thursday, the price of gold, considered to be a safer asset during periods of turbulence, hit a record of $ 3,167.57 at a given time on Thursday, before falling back.
The dollar has also weakened in many other currencies.
In Europe, prices could lead to the growth of almost one percentage point, with another blow if the Riposte block, according to analysts of the management of the main assets.
In the United States, a recession is likely to materialize without any other changes, such as major tax reductions, which Trump has also promised, warned Seema Shah, the world’s world strategist.
She said Trump’s objectives stimulate manufacturing would be a process of several years “if that happens”.
“In the meantime, steep prices on imports are probably an immediate obstacle to the economy, with a limited short-term advantage,” she said.
On Thursday, Stelllantis, who manufactures Jeep, Fiat and other brands, said that he temporarily stopped production in a Toluca, Mexico and Windsor, Canada factory.
He said that this decision, a response to the 25% Trump tax on car imports, would also lead to temporary layoffs of 900 people in five factories in the United States that provide these factories.
On the stock market, Nike, which manufactures a large part of its sportswear in Asia, was among the hardest on the S&P, with actions down 14%.
Apple’s shares, which are based strongly on China and Taiwan, have dropped by 9%.
Other retailers also dropped, with a drop of 10% by around 10%.
Motorcycle manufacturer Harley -Davidson – who was the subject of REPERS REPERS by the EU during Trump’s first mandate as president – dropped by 10%.
In Europe, the actions of the Adidas sportswear dropped by more than 10%, while the shares of Rival Puma fell more than 9%.
Among the luxury products companies, the Pandora jewelry manufacturer has dropped by more than 10% and LVMH (Louis Vuitton Moet Hennessy) fell by more than 3% after the prices were imposed on the European Union and Switzerland.
“You see that the retailers are destroyed at the moment because the prices have extended to the countries to which we did not expect,” said Jay Woods, in chief global strategy at Freedom Capital Markets, adding that he expected more turbulence to come.
