The truck carrying vehicles is driven to the United States in the entrance port of the OTAy Mesa, on the border of the US-Mexico on February 1, 2025 in San Diego, California.
Apu Gomes | Getty Images
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What you need to know today
Trump’s tariffs enter into force
US President Donald Trump launched Salvo tariffs Saturday. Imports from Mexico and Canada will face 25% duties, while those from China will be subject to 10% of tariffs. Energy resources from Canada will face a lower tariff of 10%. Canadian Prime Minister Justin Trudeau announced the same day Tariff retaliation of 25% compared to $ 155 billion in American goods. Industry leaders in the US have expressed concern about these tariffs.
The effects of Trump’s tariffs
The future of American shares collapsed on Monday morning while traders digested the implications of the tariff. The prices of US raw oil rolled up to almost 2%, and the international reference value of Brent increased more than 1%. However, analysts think Oil prices in the long run could fall If the tariffs are triggered by a global recession. Bitcoin dropped about 3.9% to $ 94,174.61 from 14:20 Singapore Time, although one strategist of thought The tariff war would be “amazing” for the crypto currency.
For shares, winning January in the midst of uncertainty
US markets withdrew on Fridaygiving up earlier gains, on the news of Trump’s upcoming tariffs. AND S & P 500 lost 0.50%, Dow Jones industrial average slid 0.75% and Nasdaq composite It fell 0.28%, but all the indexes ended up in January in Green. Asian-Pacific markets suffered losses on Monday. Japanese Nikkei 225 and South Korea Kospi index fell more than 2% each. Taiwanese semiconductor supplies Tsmc and Foxconn, who trades as Hon Hai Precise Industrydemolished after selling the technology caused deep last week.
Factory growth slows down in China
Chinese factory activity slowed down in Januaryaccording to Caixin/S & P Global Manufacturing Index Manager to Buy. The seasonally adjusted reading has arrived in 50.1 for January, lower than December 50.5 – which is also the prognosis of the Reuters survey. Homemade demand has improved, while new export orders have fallen to the second month, according to the study.
[PRO] Tariffs won’t hit equally
Cover Tariffs in Canada, Mexico and China mean that no goods imported from these countries will be spared of increased costs. However, these US companies that have chains to produce around the world or to greatly rely on imports, caused the hardest blow.
Bottom line
US President Donald Trump’s tariffs are no longer a threat, but a reality. They took away wild January during which the new president entered the White House, and the new Chinese model of artificial intelligence increased the industry.
Anything else that was new in January: the highest closing level for S&P 500.
But with current tariffs and potential trade war, markets could be difficult to increase new heights in the short term.
Even the great technological earnings and the numbers of jobs that come this week, usually the market reports, are likely to play another puzzle in politics development.
Markets are already responding to the news. The prices of oil and gold-which are prone to moving upwards at the time of volatility-they have come to light, while Bitcoin is traded lower, though it is not clear whether these shifts will be a one-time shock or a lasting trend.
Chinese factory activity, which has grown in a slower pace in January compared to December, is likely to hit as US companies are trying to deviate from Chinese imports.
Trump’s current tariffs can be targeted, but it’s hard to see any country or sector fleeing intact.
