Stock markets tumble globally as new Trump tariffs hit China, Canada and Mexico



Stock markets worldwide fell sharply on Tuesday after US President Donald Trump threatened to take a sledgehammer to the global economy, sparking fears of a global trade war following his imposition of a blanket 25 per cent levy on all Canadian and Mexican imports and an additional 10 per cent on Chinese goods.

Pressured by their respective companies and a desire not to look weak domestically, Americaโ€™s three biggest trading partners teed up retaliatory tariffs. The three account for some 42 per cent of all imports into the US, the worldโ€™s largest economy.

As the world woke up to the fact this was actually happening, analysts sought to assess how long the tariffs were likely to last, with Chinaโ€™s expected to be more โ€œstickyโ€ and less easily rolled back โ€“ seen in Trumpโ€™s decision to levy lower levels on China.

โ€œHe intends on keeping the China tariffs on for the long term, which means he needs to proceed in such a way that they are seen as manageable, not least from a market perspective,โ€ said Andrew Bishop of consultancy firm Signum Global Advisors.

โ€œWhereas we have high conviction heโ€™ll be repealing the blanket North American tariffs in short order,โ€ he added.

The three countries quickly signalled their resolve to fight back.

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