A sign
notifying
customers
that a
store
will
stop
selling
U.S.
liquor
from
Tuesday,
in
response
to U.S.
President
Donald
Trump's
imposition
of
tariffs
on
Canada,
is
displayed
on a
shelf
carrying
U.S.
alcohol
in
Winnipeg,
Manitoba,
Canada,
February
2, 2025.
REUTERS/Ed
White |
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People
walk
past
stock
index
display
outside
the
Taiwan
Stock
Exchange
office
in
Taipei,
Taiwan,
on
Monday.
(Ritchie
B
Tongo/EPA-EFE/Shutterstock) |
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Markets
in Asia,
Europe
slide as
Trump
starts
wielding
tariffs
By
Annabelle
Timsit
3–4
minutes
Global
stock
markets
fell
upon
opening
Monday,
and the
U.S.
dollar
climbed,
as
investors
braced
for a
potential
trade
war
after
President
Donald
Trump’s
announcement
of
tariffs
on goods
from
Canada,
Mexico
and
China
and as
those
countries
prepare
to
retaliate.
In Asia,
Taiwan’s
Taiex
dropped
by 3.5
percent,
Japan’s
Nikkei
index
was down
2.7
percent,
and
South
Korea’s
Kopsi
dropped
2.5
percent
at
market
close.
Hong
Kong’s
Hang
Seng
Index
was down
less
than 0.1
percent
after
closing
for
three
days for
the
Lunar
New Year
holiday;
markets
in
mainland
China
remain
closed
on
Monday.
European
stocks
also
slipped
in early
trading
Monday:
As of
midmorning,
London’s
FTSE 100
was down
1.3
percent,
and the
European
Stoxx
600 was
off by
1.4
percent.
France’s
CAC 40
was down
1.8
percent,
and
Germany’s
DAX
dropped
1.9
percent.
Car
manufacturers,
tech
companies
and
financial
services
firms
were hit
particularly
hard.
Trump
told
reporters
late
Sunday
that he
“definitely”
planned
to
impose
tariffs
on
imports
from the
European
Union
“soon.”
E.U.
foreign
policy
chief
Kaja
Kallas
said in
response
early
Monday:
“We were
listening
carefully
to those
words,
and of
course
we are
also
preparing
on our
side.”
Kallas
said
tariffs
are bad
for
consumers
and
jobs,
adding:
“There
are no
winners
in trade
wars.”
U.S.
futures
were
also
down —
including
those
tracking
the
tech-heavy
Nasdaq —
presaging
a dip in
U.S.
stocks
once
markets
open.
President
Donald
Trump on
Jan. 31
said
there
was
nothing
China,
Canada
or
Mexico
could do
to avoid
tariffs
as he
promised
to
implement
additional
tariffs.
(Video:
The
Washington
Post)
The U.S.
dollar
climbed
in
offshore
trading
in
comparison
to the
Chinese
yuan,
while
the
Mexican
peso and
Canadian
dollar
both
tumbled,
with the
Canadian
currency
reaching
levels
not seen
since
2003,
according
to
Reuters.
Trump
imposed
a 25
percent
tax on
imports
from
Canada
and
Mexico
on
Saturday
and a
new 10
percent
levy on
products
from
China,
targeting
the
United
States’
three
largest
trading
partners.
The
measures
are set
to take
place
early
Tuesday.
On
Sunday,
Canada
released
a list
of 1,256
U.S.
goods to
be hit
with
tariffs
starting
Tuesday,
which
include
oranges
and
motorcycles.
Mexican
President
Claudia
Sheinbaum
said her
country
will
announce
its
first
retaliatory
measures
on
Monday
morning.
China’s
Foreign
Ministry
criticized
the new
U.S.
tariffs
Sunday
and said
it would
“take
necessary
countermeasures
to
defend
its
legitimate
rights
and
interests.”
Analysts
expected
the
tariffs
to
disrupt
the
economies
of
countries
that
export
heavily
to the
United
States
and
companies
that
have
invested
heavily
in North
America.
Tech
companies
were
particularly
affected
in
Monday’s
market
dips,
after
Trump
said he
planned
to
impose
new
tariffs
on
manufacturers
of
high-end
computer
chips
and
semiconductors.
Taiwan
Semiconductor
Manufacturing
Co., the
world’s
largest
maker of
semiconductors
and
chips
for
AI-powered
cars,
smartphones
and
other
consumer
tech
goods —
which
announced
a major
new
investment
last
year in
its
manufacturing
capacity
in the
United
States —
was down
5.3
percent
midmorning,
though
it
rallied
and was
up 0.6
percent
by
midafternoon.
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