Stock markets are currently exhibiting caution due to President Trump’s indication of potential new tariffs. He has proposed a 25% tax on imports from Mexico and Canada, citing concerns related to immigration and drug trafficking.

Trump also mentioned that tariffs on China could be influenced by the outcomes of negotiations regarding TikTok. He warned that failing to reach an agreement might be viewed as a hostile act. During his campaign, he had promised a 10% tariff on all imports and an extraordinary 60% on Chinese goods, claiming these measures would benefit American consumers. However, critics argue that the costs would ultimately be passed on to them.

Market sentiment declined following the announcement of Trump’s tariff plans, leading to a return of unpredictability in the markets. Key observations include:

• The Hang Seng index in Hong Kong increased by 1%.
• Japan’s Nikkei 225 and South Korea’s Kospi experienced modest gains.
• The Australian ASX 200 rose by about 0.6%.

Additionally, the U.S. dollar gained strength against major currencies, including the pound and euro. Financial experts caution that the initial phase of Trump’s administration suggests a dynamic policy environment, indicating that investors should prepare for heightened market volatility.

📎 Related coverage from: bbc.com