Wall Street followed World Markets Thursday after US President Donald Trump announced prices on imports of goods from around the world.
Two -digit price hikes in global markets and economists warn that the risk of recession is climbing.
The term contracts for the S&P 500 dropped by 3.4% before the bell, while the term contracts on the industrial Dow Jones lost 2.8%, increasing potential losses when the American markets reopen in a few hours. The Nasdaq’s term contracts dropped by 3.8%.
Oil prices have dropped by more than 4% and the US dollar has reached its lowest level against the Japanese yen since early October.
It was the fourth consecutive day that the US markets began to fall early, although unlike the previous three, it seems unlikely that the actions are recovering at the end of the day.
After the closing of the American market on Wednesday, Trump said a 10% reference tax on imports from all countries and higher tariff rates on dozens of nations that execute trade surpluses with the United States. Trump says that the United States will charge a 34% tax on imports from China, a 20% tax on European Union imports and 32% on Taiwan, a crucial supplier of computer chips.
The announcement came as a “major shock,” said Yeap Junrong d’Ig in a comment. “China, in particular, was struck by an additional 34% rate, bringing its total price charge to 64% when the previous measures are taken into account.”
The losses in Asia were partly blurred by the expectations of more economic recovery from Beijing to compensate for the impact of higher prices.
Hang Seng of Hong Kong lost 1.7% against 22,813.22, while the composite index of Shanghai increased by 0.2% less to 3,342.01.
Trump said he wanted the prices to make the global system equitable and brought back manufacturing jobs in the United States from other countries. But prices threaten to reduce the growth of the United States and other economies while exacerbating inflation, which seems to have remained obstinately above the 2% objective of the federal reserve.
These fears took place early in the retail sector. A number of American companies have moved production to places like Vietnam in recent years to avoid sanctions against China. But Vietnam is among the hardest rates under Trump’s prices.
The actions of Nike, Best Buy and Dollar Tree plunged more than 11% before the opening bell on Thursday.
Trump previously announced 25% of prices on automotive imports; samples against China, Canada and Mexico; and broad prices on steel and aluminum. Trump has also put prices against countries that import oil from Venezuela and provide separate import taxes on pharmaceutical drugs, wood, copper and computer flea.
