Investors have begun to evaluate the potential radioactive drops of investors from the announcement of tariffs in Mexico, Canada, and China, so the market around the world was preparing for unstable transactions on Monday.
On Monday, the market between Japan and South Korea has dropped by more than 2 %. The weighted index on the Taiwan Stock Exchange has dropped by about 4 %. The overnight transaction on Wall Street pointed out a sharp slide in US stocks when the market opened in New York on Monday.
If investors begin to evaluate potential radioactive drops from the start of the destructive trade war, large Asian exports can be particularly affected. Companies are exposed to tariffs because they invest considerably in North America under the agreement aimed at promoting trade.
One of the largest decrease in stock prices in Asia on Monday is one of the Japanese automakers, pouring billions of Canadian and Mexico supply chains, and is hit by new taxes. Toyota Motors decreased by nearly 5 % on Monday early transactions, and Honda Motors and Nissan Motors decreased by more than 7 %.
Taiwanese semiconductor manufacturing companies, a major semiconductor giant, decreased by more than 5 % on Monday morning. Mr. Trump said on Saturday that customs duties would be placed in chips as well as petroleum and gas in the latter half of this month.
On weekends, Trump promised to impose a 25 % tariff on Canada and Mexico products, but Canada's energy products are 10 %. Mr. Trump also imposed a 10 % tax on products from China.
In the United States, retaliation has increased the fear of a full -fledged tariff war, which has raised the fear that inflation pressure, which has taken the economy in pandemic aftermath, will quickly return between investors and economists.
Immediately after Trump's weekend announcement, Canada and Mexico leaders said they would respond by collecting retaliation taxes on US products. Pesos and Canadian dollars decreased as US dollars were strengthened.
The worries about inflation have helped to fine -tune the Yields of the Ministry of Finance for two years. This was sensitive to changes in interest rates and slightly higher.
“The rise in trade policy increases the volatility of the financial market and burdens the private sector despite the rhetoric of the government,” said the consulting company EY-PARTHENON's Chief Economist, Gregory, Gregory. Dako says.
As a large -scale exporter, the first reaction from China, which could be more damaged in the World Trade War, was cautious. The Ministry of Commerce stated that it would disagree with the world trade tariffs.
The Chinese market was closed on Monday on Monday New Year holidays. Hong Kong shares traded by many Chinese companies have decreased by less than 1 %.
