Japan and Europe stocks fall ahead of Trump’s ‘Liberation Day’ tariffs – Washington Examiner
Stocks in Japan, Germany, and various other countries have fallen ahead of President Trump’s imminent announcement of new tariffs, termed “Liberation day.” This move has instigated concern among economists regarding potential global trade implications. Trump plans to introduce a 25% tariff on automobile imports, after already imposing similar tariffs on steel and aluminum imports.
The stock market responded negatively, wiht Japan’s main indexes down 4%, and the Nikkei 225 entering correction territory. South Korea saw a 3% decline, while losses were more subdued in China and Hong kong. In Germany, Volkswagen’s stock dropped by 4%, amidst vocal opposition from officials regarding the forthcoming auto tariffs.
The U.S. markets also reflected apprehension, with the S&P 500 declining by 2% and the dow Jones Industrial Average falling over 700 points, marking important losses as investors braced for the trade policy announcement. As inflation continues to rise, Trump is focused on reducing a $1.2 trillion trade deficit by targeting certain nations deemed to be taking advantage of the U.S. economy.
Japan and Europe stocks fall ahead of Trump’s ‘Liberation Day’ tariffs
Stocks in Japan, Germany, and other foreign nations dropped in value ahead of President Donald Trump’s expected additional round of tariffs, set to go into effect this week.
Trump is set to enact his reciprocal tariffs on Wednesday, which he is referring to as “Liberation Day,” causing concern among some economists.
Last week, Trump announced a 25% tariff would be placed on all automobile imports after implementing a 25% tariff on all steel and aluminum imports earlier this month.
Both Japan and Taiwan saw a 4% drop in their main stock indexes. The Nikkei 225 index in Japan slipped into a correction, down 12% from its peak in late December.
South Korea saw a 3% decline in stocks. Losses in China and Hong Kong were minimal, as indices declined 1% in Hong Kong and 0.5% in China. Despite Trump’s tariffs, China continues to see growth in its industrial sector.
Volkswagen, Germany’s largest car manufacturer, saw a 4% dip in its stock value. Germany, home to BMW and Mercedes, has been particularly vocal about the auto tariffs expected this week, with Chancellor Olaf Scholz saying he will firmly respond to U.S. tariffs.
The S&P 500 dropped 2% as of Friday’s close, marking the fifth weekly decline in the past six weeks.
The Dow Jones Industrial Average dropped more than 700 points, or about 1.7%, on Friday in its largest drop since March 10. Investors sold off in preparation for Trump’s Wednesday trade policy announcement and as inflation climbs higher than expected. On Friday, the Bureau of Labor Statistics reported that headline inflation held at 2.5%, in line with expectations, but core inflation rose to 2.8%.
Trump is seeking to shrink the $1.2 trillion trade deficit record in 2024 by targeting imported goods from the 10-15 nations with the largest trade deficits with the United States. Treasure Secretary Scott Bessent and Trump are referring to these nations, which have yet to be publicly identified, as the “Dirty 15.”
WHAT TO KNOW ABOUT TRUMP’S TARIFF THREAT AGAINST MEXICO AND CANADA
Canada and China, among other nations, have already enacted retaliatory tariffs on the U.S. Trump, however, says he intends to escalate the trade wars by implementing more tariffs in response.
“Many countries have taken advantage of us — the likes of which nobody even thought was possible, for many, many decades,” Trump said. “That has to stop.”
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