Trump Tariffs Start – Asia Market Wrap
Equities fluctuated as President Donald Trump’s tariffs on Canada, Mexico and China went into effect. Oil extended losses.
Financial markets largely took the moment the tariffs came into effect in stride – with Chinese stocks even climbing intraday. In the run-up to the deadline, though, US equities tumbled the most this year, while Treasury note yields earlier fell to the lowest in four months and oil dropped to a three-month low.
US tariffs on its biggest trading partners went into effect at midnight New York time as Trump pushes to remake global trade. In response, Canada announced a sweeping package of levies and China retaliated by imposing tariffs as high as 15% on US exports. Investors have been seeking safer havens as they become wary about rising geopolitical tensions and the prospect of tit-for-tat levies.
The S&P 500 fell 1.8% on Monday, and a gauge of the Magnificent Seven megacaps sank 3.1%.
