Stock markets fall after US tariffs Spark Trading War Fear star-news.press/wp

Stock markets around the world fell after the introduction of the Tariff of President Donald Trump on goods entering the United States from China, Canada and Mexico.

Trump imposed a 25% rate on imports from Canada and Mexico, and 20% of the tariff against China.

Canada and China announced their own import tax on American goods, while Mexico said that there were “crisis plans”, sparked fears from the full trade war.

The three main indexes of the U.S. Stock Exchange sank by the following news, while the index of the largest public companies in the UK also opened on Tuesday and in Asia markets.

The analysts have warned tariffs can encourage US household prices and could also have effect on consumers around the world, including in the UK.

The main executive director of American traders targeted warned were likely to increase prices in the next few days.

Brian Cornell said for CNBC food prices, including strawberries, avocado and bananas could grow.

Ford Cheap Executive Jim Farley warned last month business “You could handle two weeks of tariffs”.

He told Bloomberg: “We could see billions of billion dollars of pressure on the industry, they lost their jobs, a lot of influence on communities.”

Trump threatened to impose tariffs, which are a product added when he entered the country – in Canada, Mexico and China in response to what is an unacceptable flow of illegal drugs and illegal immigrants in the United States.

But the Canadian Prime Minister Justin Trudeau said that his country was responsible for less than 1% of the US entering and would revenge with 25% of the $ 150 billion goods in the amount of $ 150 billion.

“There is no justification for (American) actions … Canada will not allow this unjustified decision to not be unanswered,” Trudeau said in a Monday statement.

He said that Canada would first target the value worth $ 30 billion and target the remaining $ 125 billion for 21 days.

All fresh duties of Canada will be in effect “until the American trade action retreat,” he said, adding that his country would continue “non-tariff measures” if the tariffs do not stop us.

China quickly announced its own counter measures, which include 10-15% tariffs on some American agricultural products, including wheat, corn, beef and soy. China is the largest American buyer of these goods.

“If the United States … last in the riding of the Tariff War, the Trade War or any other kind of war, the Chinese side will fight that bitter end,” said the spokesman of the Ministry of Foreign Affairs.

Before American tariffs in Mexican imports entered into force, President Claudia Sheinbaum said that her state had plans for the intersection case.

“In this situation, we need calm, serenity and patience. We have a plan a, Plan B, Plan C, and even a plan D,” she said.

Sheinbaum said he would talk more about Mexico’s response on Tuesday.

In the US, Dow Jones closed 1.5% lower, and S & P 500 ended Monday, while in Asia in Asia, Nikkei 225 closed 1.2% lower, and the Hange Seng index ended 0.3%.

The London FTSE 100 was lower in early trading, while the main stock exchanges in Germany and France fell.

Trump claimed tariffs will increase American production and protection of jobs, as well as collection of tax revenues and economy growth.

However, such measures may have harmful effects and consumers and enterprises – including those that are exposed to protection.

Customers can be those who bear most tariffs in the form of higher prices, if they are transferred, as well as less choices.

Meanwhile, tariffs tend to initiate retaliation from targeted countries, missing domestic companies that want to export goods, which means that measures can ultimately retain return trade, jobs and economic growth.

The goods are worth about $ 2 billion exceeds USA borders, Canada and Mexico every day, and their economies are deeply integrated.

By introducing tariffs to this cross-border trade, companies that import goods can decide to bring some or all additional costs to consumers by placing prices.

They could also reduce imports, which would mean less product and thus greater demand that could withdraw and prices.

Andrew Wilson, from the International Chamber of Commerce, said, “What we see is the biggest effective increase in American tariffs since the 1940s – with serious economic risks attached to it.”

“Initial market moves are completely reflective that we are now entering a very risky scenario for global trade and for the global economy,” he said for today’s BBC Radio 4 program

He said Yale University predicted that these measures could cost American households in the $ 2,000 region this year.

Analysis from TD Economics has proposed Cars could go to the price for about $ 3,000.

This is because parts cross the US, Canadian and Mexican boundaries several times before the vehicle is composed.

American consumers could also see the price of avocado go as Mexican avocado make up almost 90% of the American avocado market every year.

Canadian billion dollar industry for syrup is 75% of the world’s vibrant syrup products, so American households could see and prices for sweet treatment.

Ella Hoxha, Fixed Revenue Head in Newton Investment, said BBC: “In terms of consumers, you are more likely to view the prices as companies pass some of these consumer prices.”

Chris Torrens, Vice President of the British Chamber of Commerce in China, added a great challenge for British business for historical connections that have the United Kingdom and the United States. (We) See how it looks like a disassembly of the transatlantic alliance between the US and Europe.

“But there is a real sense of hope for a stronger connection in the UK.”