The stock markets fall after the American prices were fears of trade war

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

Trump imposed prices of 25% on imports from Canada and Mexico and prices of 20% against China.

Canada and China have announced their own taxes on American products, while Mexico said it had “emergency plans”, arousing fears of a full -fledged trade war.

The three main stock market indices in the United States flowed following news, while the FTSE 100 of the largest companies listed on the UK on Tuesday and the stock markets in Asia were also down.

Analysts have warned that prices could increase prices of American households and could also have a training effect on consumers around the world, including in the United Kingdom.

The director general of the American retailer Target warned that buyers were likely to see price increases over the next two days.

Brian Cornell said that CNBC prices for food, including strawberries, lawyers and bananas, could increase.

Ford Managing Director Jim Farley warned last month that the company “could manage two weeks of prices”.

He said to Bloomberg: “We could see billions of billions of dollars in industry pressure, a job loss, many impacts for communities.”

Trump has threatened to impose prices, which is a tax added to a product when it enters a country – in Canada, Mexico and China in response to what claims is the unacceptable flow of illegal drugs and illegal immigrants in the United States.

But Canadian Prime Minister Justin Trudeau said his country has been responsible for less than 1% of fentanyl in the United States and would retaliate with 25% of $ 150 billion in American products.

“There is no justification for actions (the United States) … Canada will not let this unjustified decision remain unanswered,” Trudeau said in a statement on Monday.

He said Canada would first target $ 30 billion in products and target the remaining $ 125 billion over 21 days.

All the new functions that Canada imposes will be in place “until the American commercial action is withdrawn,” he said, adding that his country would continue “non-pricing measures” if the American prices would cease to stop-without specifying what these measures were.

China quickly announced its own countermeasures, which include tariffs of 10 to 15% on certain American agricultural products, including wheat, corn, beef and soy. China is the largest American buyer in these goods.

“If the United States … persist in carrying out a tariff war, a trade war or any other type of war, the Chinese part combata to the end,” said spokesman for the Ministry of Foreign Affairs, Lin Jian.

Before the American prices on Mexican imports came into force, President Claudia Sheinbaum said her country had emergency plans.

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

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

In the United States, the Dow Jones closed 1.5% decrease and the S&P 500 ended the day down 1.8% on Monday, while in Asia on Tuesday, the Nikkei 225 closed 1.2% lower and the Hang Seng index finished 0.3%.

The London FTSE 100 was lower than the start of trade while the main scholarships in Germany and France have also dropped.

Trump argued that prices stimulate American manufacturing and protect jobs, as well as increased tax revenue and increase the economy.

However, such measures can have harmful effects on consumers and businesses – including those they have decided to protect.

Buyers can be those who bear most of the prices in the form of higher price, if they are transmitted, as well as less choice.

Meanwhile, prices tend to trigger reprisals from targeted countries, disadvantaging national companies that seek to export goods, which means that measures can ultimately retain trade, created jobs and economic growth.

Goods worth some of $ 2 billion crossing the borders of the United States, Canada and Mexico and their savings are deeply integrated every day.

With the introduction of prices on this cross -border trade, significant companies of goods could decide to pass all or part of the additional costs on consumers by increasing prices.

They could also reduce imports, which would mean fewer products and therefore higher demand, which could also increase prices.

Andrew Wilson, from the International Chamber of Commerce, said: “What we have seen is the greatest effective increase in American prices since the 1940s – with serious economic risks attached to this.”

“The initial market movements are fully thought out that we are now entering a very risky scenario for world trade and the world economy,” he told BBC Radio 4

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

TD Economics analysis suggested Cars could increase in price by about $ 3,000.

Indeed, the parts cross the American, Canadian and Mexican borders several times before a vehicle was assembled.

American consumers could also see the price of lawyers increase as Mexican lawyers represent almost 90% of the American lawyer market each year.

The dollar billion maple syrup in Canada represents 75% of the world’s global production syrup in the world so that American households can also see the prices of the sweet treat increase.

Ella Hoxha, responsible for fixed income securities at Newton Investment Management, told BBC: “In terms of consumers, you are more likely to look, certainly in the short term, increases prices as companies transmit some of these prices on the consumer.”

Chris Torrens, vice-president of the British Chamber of Commerce in China, added: “It is a huge challenge for British affairs due to the historical ties that the United Kingdom and the United States have. (We) see what resembles the dismantling of a transatlantic alliance between the United States and Europe.

“But there is a real feeling of hope for a stronger relationship in the United Kingdom.”