The tariffs trigger the sale of shares, possible price increases

25% of the US President Donald Trump's tariffs on Canada and Mexico and an additional 10% on China are officially on the spot, proving that they do not only wave the negotiating tactics, as many thought – and she hoped. Since then, Canada and China have announced retaliation tariffs, and Mexico said that her answer would come on Sunday.

Geopolitical trade and international relations can be broken by the US, but they may be domestic consumers and the economy that hurt the most. Business leaders in the field of shipping and retail – two industries that serve as a belfry of the economy – they expressed fears that tariffs can raise prices, even within a few days.

Investors were also terrified in the markets. All the main American comparative tests have fallen. The profits achieved by the S&P 500, when the wave of victory of Trump on the day of elections was riding, now disappeared. Technological reserves have been battered since the inauguration of Trump in January. The tax on goods imported from other countries also begins to look like shares.

Compromise on tariffs?
25% of the US President Donald Trump's tariffs for goods Patterns from Canada and Mexico, as well as an additional 10% fee in China, kicked on Tuesday in the north. American trade secretary Howard Lutnick said on Tuesday that Trump would probably announce Compromise contracts with Canada and Mexico As soon as on Wednesday. However, Lutnick seemed to exclude the possibility that Trump would completely raise the tariffs.

Companies say that price increases are likely
Leaders, Trump tariffs can raise prices within a few days. “The short -term effect of any tariff is clearly inflation– said Charles van der Steene, president of North America for the MAERSK shipping giant, while the goal of CEO Brian Cornell said on Tuesday CNBC “The consumer will probably see Price increase over the next few days. “This is causing fear of “stagflation” In the US economy, in which prices are rising, but the growth slows down.

Markets are falling from tariff fears
Investors sold US shares on TuesdayTerrified by the influence of tariffs on the economy. . S&P 500 lost 1.22%, Industrial average Dow Jones fell by 1.55% and NASDAQ composite 0.35%withdrew. Europe Stoxx 600 The index dropped by 2.14%, his The biggest daily loss from August. Stoxx 600 automotive stocks – one of the sectors that expects them to be most affected by new duties – has fallen by 5.7%.

The “Trump Bump” elections destroyed
“Trump Bump” has disappeared in the markets. After the fall on Tuesday, S&P 500 closed to 5,778.15, below level 5 782.76 on the day of the election, November 5. This means that the index lost its benefits after the election. . Russell 2000 The small hat indicator that jumped by 5.84% on November 6 fell by about 8%. Meanwhile, Technology reserves have fallen by more than 7% He took the office since time in January.

(Pro) Look at Europe for own capital: Analysts
According to analysts who marked the growing valuations and political risk on the American market in Europe, is a place for capital investors compared to a more stable geopolitical environment in Europe. The European market and economy also offer A few other advantages over the USA

Analysts say that these safe currencies have a charm in relation to the American dollar among the volatility of the Trump regime

Geopolitical development from this month this month has appeared American tariffs for Canada, Mexico and China, US President Donald Trump reported arrest of military assistance in Ukraine, soft economic data from the USA and European leaders committing to increasing defense expenditure. David Roche, a strategist in the Quantum strategy, said that such events can see how Greenback has been dethroned as a safe FX marina.

Jane Foley, head of the FX strategy in Rabobank London, said on Tuesday CNBC via e -mail that she was expecting a British pound and Japanese yen will be the winners of the current environment. Dominic Schanider, head of the global FX and goods at UBS Global Wealth Management, said that “investors can significantly move towards higher efficiency currencies” such as Australian dollar and the British pound.