Triffs Trump: The markets accelerate for falls while Mexico and Canada ride | International trade

Investors are preparing for stock market falls after Canada and Mexico retaliated against the commercial prices imposed by Donald Trump this weekend.

Exchanges on the IG weekend markets of the brokerage indicate that the actions should fall on Monday, after the American president signed an order on Saturday to provide radical prices this week, a decision that could cause a trade war with Some of the country’s largest business partners.

Technological actions should be affected, the American Nasdaq index on the right track to fall by 1.2% at the start of the negotiation on Monday, according to IG. The official term market opens its doors on Sunday evening.

The Dow Jones index of 30 large American companies seemed to drop by more than 0.7%, while the FTSE 100 of the United Kingdom – which ended last week at a record – was on the right track for a drop of 0.6%.

“The surprise for today’s markets is not so much Trump’s pricing announcements – largely reported,” said IG analyst Tony Sycamore. “It is that Canada and Mexico have fulfilled immediately and that others, that is to say that China and the EU, can follow their example, leading to a strong contraction in world trade.”

Canadian and Mexican exports to the United States will face 25% from Tuesday, and there will be a 10% levy from Canada’s energy resources.

Trump said this decision was in response to a “major threat” of illegal immigration and drugs, and demanded the two countries from the flow of fentanyl and illegal immigrants.

Imports from China will face a price of 10% in addition to existing American costs.

Canada was quick to respond, with Prime Minister, Justin Trudeau, announcing a 25% price of Tit-for-Tat in products of $ 155 billion (86 billion pounds sterling) of American products.

The president of Mexico, Claudia Sheinbaum, ordered her Minister of the Economy to implement tariff and non -pricing measures in response, while the Chinese Ministry of Commerce has committed to bringing a “prosecution” against the States -Unis to the World Trade Organization.

Trump’s prices included a reprisal clause to take them back if Mexico, Canada or China wanted to impose their own prices in response.

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Energy analysts and merchants have predicted that American fuel prices should increase due to Canadian and Mexican oil prices.

Chris Weston, the chief of the brokerage courtyard Pepperstone, predicted that Trump’s announcement would lead to “a certain derisory” on the markets and to higher volatility on foreign exchanges.

“With Trump placing additional prices of 25% on Mexican and Canadian imports and adding 10% to the current rate of Chinese imports (with limited sets), we can say that this result is close to representing the approach harder the possible scenarios that we had considered, ”wrote Weston.

“Conversation on the risk of recession in Canada will surely increase and (this) should also increase the prospect that the Mexican central bank will reduce the night rate by 50 pb when Banxico meets on Thursday.”

Bitcoin, the largest cryptocurrency in the world, fell on a week-long hollow of about $ 99,078 on Sunday.

The acting president of South Korea, Choi Sang-Mok, ordered government agencies to closely monitor any impact of new prices on national companies and the South Korean economy.

Trump denied that prices – which are paid when the goods enter the United States – would increase prices. “Prices do not cause inflation,” he said. “They are successful.”

But economists expect the cost to be transmitted to American consumers.

Harvard Lawrence Summers, former American secretary of the Treasury, said the prices against Canada and Mexico are “inexplicable and dangerous”.

“A large part of what we export involve imported entries. The cars move in the border between five and 10 times during the assembly. This makes all of North America much less competitive, compared to Europe and Japan, “published Summers on X, formerly known as Twitter.