Manila, Philippines (AP) – World share retreated on Friday after President Donald Trump released a new set Import taxes This will apply to dozens of countries as August 7.
The US futures fell 0.9% after Trump announced tariff rates by Trump for 68 countries and European Union imports. He also said that the tariff for Canadian products will be effectively increased to 35%on Friday.
Investors were looking forward to the US payroll data which later dropped out during the day.
The order pushed back the time limit of the set tariff for August 1 and injecting a new dose of uncertainty already in the unpredictable process, which had become intensified in the markets since Trump returned to the White House in January.
This is not the end of the story, Stephen Brown of Capital Economics said in a commentary, “This is unlikely to be the last word, as it is still likely that some other countries will reach their own deals with the US, while there is a chance that the American courts will eventually attack these tariffs.
In early European trade, Germany’s dax fell 1.7% to 23,651.26. Britain’s FTSE 100 fell 0.7% to 9,063.50. In Paris, CAC 40 shed 1.8% to 7,632.72.
The futures for S&P 500 and Dow Jones Industrial Average were 0.9%below.
Asian markets have also declined, Samsung Electronics with South Korea’s Kospi is 3.9% to 3,119.41
Japan’s Nikkei 225 0.7 % slipped from 0.7 % to 40,799.60 as Japanese officials said that they were closely looking for details and progressing to implement an agreement for a 15 % tariff on exports to America to America
Hong Kong’s Hong Seng Index shed 1.1% to 24,507.81, while Shanghai Composite slipped 0.4%. The position of China’s trade talks with the United States is not clear, but is different from Trump’s announcement late Thursday night.
Australia’s S&P ASX 200 from 0.9% to 8,662, India’s BSE Sensex fell from 0.4% to 80,837.19 and Taiwan’s Taiex from 0.5% to 23,434.38.
“Trump’s new tariff instructions, signed behind the closed doors before the August 1 time, slap a new floor under global trade cost: 10% minimum rate for almost all partners, 15% or more surcharge for surplus nations,” with a particular IRE with Canada, SPI Asset Management Stephi said in a comment.
“It was not just an update – it was a structural rewriting. The average American tariff jumps from 13.3% to 15.2%, Trump made an earthquake change at 2.3% before the removal of the office.
Trading on Wall Street on Thursday faded the early Big Tech rally and caused more damage after the pullback of a health care sector.
S&P 500 fell 0.4%, its third direct decline. The benchmark index, which is just below the record high, was set on Monday, gained 2.2% for the month of July and 7.8% so far this year.
Dow Jones was reduced to 0.7% in industrial average and NasDaq Composite was reduced by 0.1%.
The S&P500 is lost in about 70% of shares, responsible for the largest drag in the market with health care companies.
After issuing a letter issued by the White House, the health care stock was submerged, asking large pharmaceutical companies to cut prices and make other changes in the next 60 days. Ellie Lily & Company fell 2.6%, the United Health Group fell 6.2%and Bristol-Myers Squib fell 5.8%.
In early Friday, in other deals, the US benchmark crude oil shed 52 cents at $ 68.72 per barrel, while Brent crude, international standard, gave 47 cents to $ 71.23 per barrel.
The US dollar fell from 150.77 yen to 150.46 Japanese yen. The euro slipped from $ 1.1406 to $ 1.1417.
Teresa Sejano, Associated Press