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The US shares on Tuesday deleted all gains accumulated after the election of Donald Trump, after the presidential tariffs on the largest shopping partners in Washington encouraged the fear of serious damage to the global economy.
S&P 500 – which reached a record high level less than two weeks ago – closed 1.2 percent on Tuesday, below November 5, in a session marked by a violent swing.
Technologically heavy Nasdaq Composite closed 0.4 percent lower after recovering some of his earlier losses.
The moves followed after Trump 25 percent of tariffs Imports from Mexico and Canada entered into force on Tuesday, causing anger from US neighbors and fear of fear of a trade war.
The White House also imposed an additional 10 percent of the levies for the goods from China, on top of last year’s 10 -pointed tariffs, as the president’s protectionist policy promoted the concern of investors because of world economic slowdown.
“The global trade war for all losing situation is,” said Alain Bokobza, head of global assets at Société Générale. “Some people will lose relatively more than others, but everyone will lose.”
In recent days, the American stock market has been hit, unlike the gathering that followed the Trump triumph at the polling station, when investors bet that his promise would reduce profit tax.
“This happens when the market at the price of perfection sees what it least wanted to see: tariffs and growth slowdown,” said Steven Gray, the CEO for investing in Gray Value Management.
The President’s Tariff against the three largest American trading partners has collected duties to some of the highest levels in decades, with the appearance of further increases because tensions grow even greater.
Canadian Prime Minister Justin Trudeau said Trump’s said reason for the fentanil-bil-bil-bil Tarife-Bili Tariff Tariffs and suggested that the US president really wanted to launch “the overall collapse of the Canadian economy because it would make it easier for us to anecling.”
He added that Ottawa would take revenge on a $ 30 percent of $ 30 billion ($ 21 billion) of American imports and tariffs on another C goods of 125 billion US goods 21 days later.
Ontario, the most populous province in Canada, said he would immediately extinguish his contract with Starlinka, an online satellite provider who founded Elon Musk, and US companies from government tenders. He also announced that he would no longer sell American alcoholic beverages.
While Mexico will wait until Sunday to discover countermeasures, China said she would charge a 10-15 percent tariff on US agricultural goods, ranging from soy and beef to corn and wheat, from March 10.
Even before this week’s tariffs, some American economic indicators have hinted at possible problems.
A study conducted by the American Association of individual investors found that the confidence of investors near the end of February was close to all time, while the Atlanta Federal Bank in Atlanta conducted an increase in US GDP, published on Monday, pointed to a 2.8 % contraction in the first quarter.
Bank stocks – which are sensitive to economic jerks – suffered a major decline on Tuesday, and the KBW Bank index has been reduced by 3.6 percent.
Citigroup and Bank of America fell 6.3 percent on Tuesday. Morgan Stanley lost 5.7 percent and Goldman Sachs spilled 4 percent.
