US President Donald Trump’s announcement that Canada and Mexico will be applied to 25 percent and 10 percent to China would apply additional customs duties to China.
While the ongoing inflation-research dilemma worldwide restricted the policy areas of central banks, concerns that tariffs can revive inflationist pressures have increased risk perception.
Analysts stated that Trump has worried that the tariffs to be applied to important trade partners of the United States can slow down international trade, and this situation reduces purchases in relatively risky assets such as the share market and crypto currency market and led investors to search for safe harbor.
“Remember” statement from Europe and Canada
“EU goods will be harshly responded to any trading partner who imposes customs duty unfairly or arbitrarily,” the European Commission spokesperson after Trump announced that the US will certainly apply additional customs duties to the European Union (EU). he said.
Canadian Prime Minister Justin Trudeau said that 25 percent customs duty will be applied to imports of $ 155 billion Canada from the United States, and that these tariffs will enter into force within 21 days for goods worth $ 125 billion for goods worth $ 30 billion Canada.
The Chinese side reported that Trump would take measures against the decision to impose an additional customs duties to all products imported from China and that he would complain to the World Trade Organization (WTO). In a statement made by the Chinese Ministry of Commerce, it was emphasized that the unilateral increase in the US customs duties violated the DTO rules.
Following Trump’s tariff decisions and retaliation statements from Europe with Canada, the dollar index increases by about 1 percent to 109.6 levels, pushing the highest level of 2 years, 110. Brent oil’s barrel price increased by 0.1 percent to 76.3.
Analysts think that these tariffs will increase the cost of heavy crude oil that US refineries need for optimum production, reduce the profitability rate and cause possible production cuts.
When we look at the commodity side, gold is 0.1 percent on the first trading day of the new week, 0.7 percent in silver, 1 percent in copper, 0.9 percent in palladium, 2 percent in platinum, 0.5 percent in sugar, 0.3 percent in cocoa. .
Analysts, the increase in the demand for the dollar highlights in the commodity market, demand concerns, he said.
In the crypto currency market, Bitcoin is traded at the level of 95 thousand 368 with a decrease of 2.5 percent to the new week and Ethereum is traded at 2 thousand 577 with 12 percent depreciation.
Losses in European stock exchanges exceed 1.5 percent
When we look at the European stock exchanges, 1.7 percent in the DAX index in Germany, 1.4 percent in the FTSE 100 index in the UK, 1.6 percent in CAC 40 index in France, 1.3 percent in MIB 30 index in Italy, and IBEX in Spain The 35 index decreases around 1.2 percent.
Asian stock exchanges also declined with sales pressure. Nikkei 225 index decreased by 2.7 percent in Japan with 38,541 points and the KOSPİ index in South Korea decreased from 2.5 percent to 2.454 points.
According to the US press, the Beijing administration is in a preparation to agree with the US in order to prevent Trump from increasing additional customs duties and technology restrictions.
Analysts said that the Chinese markets will be opened tomorrow after the Chinese New Year holiday, and that the reflections of additional customs duties in the Chinese domestic market can be seen.
Index futures contracts in the United States began the new week with a negative course.