US President Donald Trump promises tariffs for all agricultural imports. Meanwhile, the tone between Washington and Beijing becomes sharper.
As the date for the new tariffs, he announced on his online language tube Truth Social April 2. “To the great farmers of the United States: Get ready to produce a lot of agricultural products that are to be sold within the United States,” he wrote. “From April 2, tariffs will be raised on external products. Have fun!”
It was open whether the tariffs should apply to imports from all countries worldwide – or whether there will be exceptions for certain trading partners.
US tariffs against Mexico and Canada probably came into force
According to the US media, the announced tariffs for goods from Mexico and Canada came into force shortly after midnight (local time). This reported, among other things, “New York Times”, “Wall Street Journal” and the broadcaster CNN. Trump had previously said in Washington that the punitive measures on goods from Canada and Mexico in the amount of 25 percent would apply from Tuesday. “President Donald J. Trump continues with the introduction of tariffs against Canada and Mexico,” said a Montag published by the White House.
There is now a threat of a North American trade war with uncertain consequences for the global economy. The Republican also ordered to double the import duties ordered in February to goods from China to 20 percent.
Trump uses tariffs as a means of pressure
According to the “New York Times”, imports from Canada, Mexico and China made up more than 40 percent of all US imports. Trump justifies the tariffs against Mexico and Canada with the fact that the neighboring countries did not have sufficiently against drug trafficking and illegal migration on the common limits. Among other things, Beijing accuses the Republican not to prevent the drug made in China Fentanyl into the USA.
Trump regularly uses customs threats as a negotiation tactic to force concessions in other areas. The Republican had announced various tariffs in the past few weeks – but some of them were suspended again. So it also behaved with the tariffs on goods from Canada and Mexico. At the beginning of February, Trump attended the concessions of the neighbors just a few hours before the threatened punitive tariffs came into force, especially when it comes to border security. For this he pushed the trade restrictions on for at least 30 days.
Canada reacts with counter -tariffs
It remains to be seen whether Canada and Mexico can agree again with Trump to avert the punitive measures quickly. In any case, Germany should also feel a trade war in North America – especially the German auto industry. Almost all manufacturers and many suppliers use Mexico as a cheap production site – and from there also serve the US market. The tariffs against Canada could become a problem for Volkswagen, for example. Because the Wolfsburg are planning a battery cell factory in Ontario, which is to supply the Group’s e-car works in the United States.
Canada’s Prime Minister Justin Trudeau had already announced countermeasures. Kanada wanted to introduce tariffs of 25 percent on US goods from a minute after midnight (6.01 a.m. CET), he had had it in advance. This initially only applies to goods with a total value of $ 30 billion, the statement said. After 21 days, this number will be increased to a total of $ 155 billion.
The Chinese Ministry of Commerce also announced that it would react to new tariffs with countermeasures. The US government had imposed tariffs of 10 percent on all goods from China in early February – in addition to tariffs that the United States had previously imposed. Back then, Beijing was already responding. The two largest economies are now threatening to head for a new trade war like 2018.
Customs loads on Asia’s stock exchanges
US President Donald Trump has thus sent the Asian stock markets to the deepest stands on Tuesday. Although the taxes do not reach the level of Wall Street from the previous evening and some markets are already recovering after the first fright, but the mood on the markets has been struck.
China also announces counter -tariffs
In response to new US tariffs, China has announced counter-tariffs to agricultural products and other measures against US companies. As the Beijing Ministry of Commerce announced, China will raise additional tariffs of 15 percent on chicken, wheat, corn and cotton from the USA from March 10. An additional customs of 10 percent will apply to other agricultural products, including soybeans, pork and beef.
Also announced Beijing to put other US companies on a list of unreliable entities, which threatens restrictions or complete bans for business activities in China.
The feared trade war seems to become a reality – and against the background weaker than expected, unusual US economy data the evening before. “No favorable requirements for stocks,” says a dealer. Supposedly safe ports are therefore in demand, US bonds rise as well as the Japanese yen. According to the IG market strategist Yeap Jun Rong, the emergency uncertainty about US tariffs should dampen the market mood in Asia in the near future.
In Japan, the Nikkei 225 fell by 1.2 percent to 37,331.18 points – also burdened by the yen. Export -heavy titles from the automobile and semiconductor sectors are sold – the latter also burdened by the Nvidia crash in the USA. Advantest lost 4.33 percent to 7,776 yen and soft bank 4.73 percent to 7,932 yen or Honda motor to 1,381 yen.
dpa-Afx / Dow Jones Newswires
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