“According to investors, new duties will lead to turbulence in the market.”, – WRITE: www.unian.ua
According to investors, new duties will lead to turbulence in the market.
Economists warn that new duties are likely to accelerate inflation in the US / photo ua.depositphotos.comThe Donald Trump President’s duties swept through the foreign exchange markets. The Canadian dollar and the Mexican peso have suffered losses as investors are in a hurry to estimate how new tariffs will affect Washington’s largest trading partners.Financial Times writes that the Canadian dollar was under pressure at the beginning of bidding in the Asia -Pacific region, falling by 1.4% to a 1.473 Canadian dollar relative to the US – the lowest level since 2003. The Mexican Peso fell by more than 2% to 21.15 relative to the dollar. The euro also lost 1%.
At the beginning of the session, the bidding volumes are usually very low, which can increase price fluctuations.
A sharp fall occurred after Trump has imposed duties on all imports from Mexico and Canada, Canadian energy and imports from China.
Economists warn that new duties are likely to accelerate inflation in the United States, which has pushed the growth of treasury bonds and dollar after Trump’s election in November 2024.
“The most obvious consequence is the strengthening of the dollar,” said Eric Vinograd, Chief Economist of Alliance Bernstein.
According to him, “there is every reason to believe that the stock market will suffer a little.”
“If duties remain in force for several months, the exchange rate will reach new historical maxima,” said Gabriel Siller, the chief economist of the Mexican Banco Base, referring to the course of peso for a dollar. “If duties remain valid, it will be a structural change for Mexico. … and Mexico can fall into a deep recession that will take years.”
Bloomberg writes that new US duties can hit China’s exports particularly much and undermine it already unstable economy, which, in turn, will force Beijing to take more active stimulation measures to resist the consequences.
“From the point of view of macroeconomics, we believe that a direct impact on Asian shares can have a potentially growing US dollar,” Nomura Holdings Inc. said strategists.
The largest Japanese car manufacturers are counting on North America as the most important market and selling cars that have been manufactured or collected in Mexico, near the border from the United States. Shares of Toyota Motor Corp., Honda Motor Co. and Nissan Motor Co. fell at least 5%.
The South Korean Auto Corp Automobile Stocks, which have a plant in Mexico, fell by more than 5%.
Chinese electric vehicles who seek to expand their presence in the US market such as Li Auto Inc. and Xpeng Inc. affected by new duties. Their stocks fell in Hong Kong at least 6%.
The stock of Chinese e -commerce platforms decreased as Trump’s plans have canceled the long -standing taxes for parcel worth less than $ 800.
The shares of Chinese companies that produce small durable products have also fallen. Promotions of the LI Ning Co. and manufacturer of home appliances HAIER SMART HOME CO. fell by more than 7%.
Shares of the largest Asian chip exporters, including Taiwan Semiconductor Manupacturing Co. and Samsung Electronics Co. They declined because Trump stated that the chips would be taxed.
Meanwhile, Japanese manufacturers of semiconductor equipment, which usually receive the bulk of their income from China, have also decreased. Shares of Tokyo Electron Ltd., Advantest Corp. and Disco Corp. fell at least 2%.
According to analysts, Asian refineries can be winning from US duties, with S-Oil Corp. But other companies in this sector will be in winning compared to the wider market. Trump’s trading duties on the import of Canadian and Mexican oil can give Asian refineries an advantage over their American competitors, while their profit margin will increase due to higher prices for products.
Some Taiwanese companies engaged in the production of artificial intelligence in Mexico have fallen in price: Quanta Computer Inc. stocks. They fell by almost 10%. Delta Electronics Inc., which has investments in Mexico, has fallen.
Other non -car manufacturers of the region with plants in Mexico, such as LG Electronics Inc, have also fallen.
Shares of Indian manufacturers of non -proprietary medicines and suppliers of auto components present in Mexico, such as Samvardhana Motherson International Ltd., Tata Motors Ltd. and lupin ltd., fell.
Trump’s duty is the latest newsThe United States imposes significant duties on imports from Canada, Mexico (25%) and China (10%). In these countries, they immediately promised to take action.
Already on January 31, the new US President Donald Trump said that it would be “absolutely accurate” to introduce tariffs against the European Union.
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