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European and US futures slump as Trump says EU tariffs will ‘definitely happen’; stocks and cryptocurrencies tumble in Asian trading hoursTrump says EU tariffs will ‘definitely happen’ as Mexico, Canada and China retaliateThe pound is also suffering from the strength of the US dollar, as fears of a global trade war rattle markets.Sterling has dropped by a cent, or 0.9%, against the dollar to as low as $1.2246, its weakest level in almost two weeks.As part of its effort to prepare for negotiations … China’s initial proposal will center on restoring a trade agreement Beijing signed in early 2020 with the first Trump administration but didn’t implement.The so-called Phase One deal required China to increase purchases of American goods and services by $200bn over a two-year period. While Trump himself has described Phase One as the “greatest deal” ever made, many trade experts and business executives called it unrealistic to begin with.Bloomberg Economics estimates Trump’s initial levy could knock out 40% of Chinese goods exports to the US, jeopardizing 0.9% of China’s gross domestic product. Goldman Sachs Group Inc. said the additional 10% tariff would weigh on real GDP growth by 50 basis points this year, though it noted that Trump’s action “is less severe than market participants and Chinese policymakers feared.” Continue reading…
European and US futures slump as Trump says EU tariffs will ‘definitely happen’; stocks and cryptocurrencies tumble in Asian trading hours
The pound is also suffering from the strength of the US dollar, as fears of a global trade war rattle markets.
Sterling has dropped by a cent, or 0.9%, against the dollar to as low as $1.2246, its weakest level in almost two weeks.
As part of its effort to prepare for negotiations … China’s initial proposal will center on restoring a trade agreement Beijing signed in early 2020 with the first Trump administration but didn’t implement.
The so-called Phase One deal required China to increase purchases of American goods and services by $200bn over a two-year period. While Trump himself has described Phase One as the “greatest deal” ever made, many trade experts and business executives called it unrealistic to begin with.
Bloomberg Economics estimates Trump’s initial levy could knock out 40% of Chinese goods exports to the US, jeopardizing 0.9% of China’s gross domestic product. Goldman Sachs Group Inc. said the additional 10% tariff would weigh on real GDP growth by 50 basis points this year, though it noted that Trump’s action “is less severe than market participants and Chinese policymakers feared.”
