Tariffs trigger stock sell-offs, possible price increases | Real Time Headlines

U.S. President Donald Trump’s 25% tariff on Canada and Mexico and another 10% tariff on China has officially come in place, proving that he is not waving them as many people think of them just as a negotiating strategy to waving them and hope he hopes. Canada and China have since announced retaliatory tariffs, while Mexico says its reaction will appear on Sunday.

The United States may undermine geopolitical trade and international relations, but it may be the biggest harm to domestic consumers and the economy. Business leaders in transportation and retail, both industries that are victims of the economy, expressed concern that tariffs could raise prices even within a few days.

In the market, investors are also scared. All major benchmarks in the United States are down. The wave of victory that the S&P 500 won on Election Day has now disappeared. Tech stocks have been beaten since Trump took office in January. Taxes on imported goods from other countries are also starting to look like stocks.

Tariff compromise?
US President Donald Trump’s 25% tariff on goods Imports from Canada and Mexico, as well as 10% tax on imports in China, kicked at midnight on Tuesday. U.S. Commerce Secretary Howard Lutnick said Tuesday that Trump will “possible” announcement Tariff compromise deals with Canada and Mexico Wednesday. However, Lutnick seems to rule out the possibility that Trump will raise tariffs altogether.

Companies say the likelihood of price increases is high
Business leaders say Trump’s tariffs could raise prices within days. “The short-term impact of any tariff is obviously inflation” North American transport giant Musk president Charles van der Steene said target CEO Brian Cornell told CNBC on Tuesday. Prices rise in the next few days. ” This is Cause fear of “stagnation” In the U.S. economy, prices rise but growth slows.

Tariff concerns in the market
Investors sold U.S. stocks on TuesdaySurprised at the impact of tariffs on the economy. this S&P 500 Lossed 1.22% Dow Jones Industrial Average 1.55% down, Nasdaq Composite Materials Retreat to 0.35%. European Stoxx 600 The index fell by 2.14%, The biggest daily loss since August. The STOXX 600 basket auto stock (one of the sectors that are expected to be most affected by the new responsibilities) fell 5.7%.

“Trump bump” election eliminated
The “Trump bump” in the market disappeared. After tumbled on Tuesday, the S&P 500 closed at 5,778.15, down from the 5,782.76 level on November 5 Election Day. This means the index loses its post-election gains. this Russell 2000 The Little Hats index fell by about 8% on November 6. at the same time, Technology stocks fell more than 7% Since Trump took office in January.

(Pro) Seeking Europe for Fairness: Analysts
Europe is a place for stock investors compared to Europe’s more stable geopolitical environment. European markets and economies also offer Several other advantages In the United States

Analysts say

U.S. President Donald Trump has reported on military aid to Ukraine, U.S. presidential military aid to Ukraine, U.S. economic data is becoming softer, European leaders’ commitment to increase defense spending, geopolitical developments starting this month have taken effect on Canada, Mexico and China. Such events could see green pretending as a safe haven for the FX market, said David Roche, strategist at Quantum Strategy.

Jane Foley, head of strategy at Rabobank FX in London, told CNBC via email on Tuesday that she expects the pound and yen to be winners in the current environment. Dominic Schnider, global head of foreign exchange and commodities at UBS Global Wealth Management, said that “investors may turn to higher currencies more clearly”, such as the Australian dollar and the British pound.