Shares around the world fell on Monday after President Trump’s tariffs on the U.S.’s largest trading partner, and investors were expected to announce more tariffs, with stocks falling on Monday for a week of market turmoil.
Since taking office two months ago, Mr. Trump has been stumbled on what he called “the first time in the United States” trade policy and keep speculation from investors and companies. He threatened, imposed, and in some cases, he suspended new tariffs on goods entering the United States.
Shares in Japan and Taiwan fell more than 4% on Monday, while shares in South Korea fell 3%. Japan’s Nikkei 225 index proposed a correction, down 12% from its late December high. Technology companies have taken a tough hit: chipmakers Taiwan semiconductor manufacturing companies, SK Hynix, Samsung and Tokyo Electronics have seen a decline in records.
China’s losses are softer. Hong Kong stocks fell by more than 1%, while mainland China stocks fell by about 0.5%. Mainland stocks were given a report showing that despite Mr. Trump’s initial tariffs, the Chinese-led industrial sector is still expanding.
Markets in Europe are less open, with the Stoxx 600 index down by about 1%. German automakers, in particular, have extended their recent losses: Volkswagen, Europe’s largest automaker, fell nearly 2% in Frankfurt.
Futures for the S&P 500, which enables investors to exchange benchmark indexes before New York reopens in the morning. The S&P 500 fell 2% on Friday as fears Trump’s tariffs could charge inflation and weaken consumer sentiment, dragging the index to its fifth decline in the past six weeks.
Mr. Trump imposed tariffs on industries such as automobiles to make imports more expensive, believing that trade barriers will stimulate U.S. investment and innovation. He also uses tariffs and its threats to try to extract geopolitical benefits from the state. He said he was not concerned about the impact of his own actions on the market or the actions of American consumers, and his investors were further upset that if import prices rose, they would have to pay more for many goods.
Last weekend, Mr. Trump increased pressure on threatening to impose second-level sanctions on Russia if it does not negotiate to suspend the fight in Ukraine. The strategy echoes similar sanctions in Venezuela. He said last week that any country that buys Venezuelan oil could face 25% tariffs when importing into the United States.
The weekend threat increased tariffs on imported cars by 25% and some auto parts to be implemented this week, prohibiting any last-minute probation. This is a delay in previous tariffs on Mexico and Canada, and the potential for further retaliation against other countries.
Adding a reservation to investor anxiety is the scheduled release of monthly reports on the health of the U.S. job market. It could provide another article to understand how the Trump administration’s policy pursuits weigh the economy.
Keith Bradsher Contribution report.
