New York (Reuters) -President Donald Trump on Saturday ordered a 25% tariff on Canadian and Mexican imports and 10% on Chinese goods starting from Tuesday to deal with what he calls the national emergency of fental and illegal immigration United States.
Mexico and Canada, the first two American shopping partner, immediately vowed to retaliate the tariff retaliation, while China said it would challenge Trump’s move at the World Trade Organization and take other “countermeasures”.
Here are some strategist comments and investors:
Holger Schmieding, Chief Economist, Berenberg Bank, London
“There was a hope that Last-Minut’s negotiating breakthrough with Canada would happen to Canada. So, I would say this is a modest disappointment for markets, especially for the Canadian currency.
“For Europe, this is a mild negative in the sense that (Canadian) negotiations with Trump have not given the result at the last moment, and the European answer has been negotiating.
“But still, we have had this relief since Trump came to the duty not to start the big tariffs, that we (Europe) obviously are not his main priority of it.
“And therefore the whole narrative holds that we hope to avoid large devastating tariffs, offering some concessions to a) higher military consumption on b) importing much more natural gas from the USA”
Marchel Alexandrovich, Economist, Saltmarsh Economics, London
“It’s just a matter of time before the EU targets. In the meantime, the fact that Canada reacts and sets tariffs against American goods is a sign of things that come and show the risk of global trade.
“Trade tensions are unquestionably wind for GDP growth, but greater inflation will give the central banks a dilemma in the sense of how to react. So there is a lot of information to process the market.
“But stronger growth winds mean that the ECB (European Central Bank) is likely to face even more pressure to facilitate cash conditions.”
Nick Twidale, Main Market Analyst, ATFX Global, Sydney
“I think we will see some breakthrough in currency (on Monday). There was still hope that there would be some form of return, but that didn’t happen so we’ll see the markets react. It’s negative for CAD, MXN and CNH, as well as overall risk.
“The stock will open on the back leg in the Asian session, and then we will again monitor Newswires for further updates.”
Nick Ferres, Cio, Vantage Point Asset Management, Singapore
“My point is to fade any negative outdoor reaction in Asia, especially since there is room for negotiations. The tariffs are probably not as bad as they are afraid, especially on China.”
