Donald Trump’s imminent trade war has sent global stock markets stuttering ahead of his controversial tariff plans later today.
The White House confirmed yesterday the President will impose new tariffs, however it did not provide details about the size and scope of the fees on what he has called “Liberation Day.”
Asian stocks struggled for direction, with Japan’s Nikkei last up 0.25 per cent after hitting its lowest level since September earlier in the session. South Korea’s benchmark index was down 0.6 per cent.
The Hang Seng Index in Hong Kong dropped 0.8 per cent. In mainland China, the CSI 300 Index declined 0.1 per cent.
Stock markets across the world are holding their breaths ahead of Trump’s “Liberation Day”
Getty
White House Press Secretary Karoline Leavitt holds a press briefing,
Reuters
Asia-Pacific investment strategist at Legal & General Investment Management Ben Bennett said: “Nervousness is the dominant sentiment right now.
“Investors are hoping for some clarity, and perhaps the start of the deal making phase. But tariffs are already weighing on business sentiment, and this will probably feed through into lower global economic activity in the coming months.”
Experts have also issued a “global recession” warning ahead of the imposition of new tariffs.
Chief economist at Vanguard Asset Management Jumana Saleheen told MPs: “The situation which is much more worrying is if it would expand into more of a trade war, and then everybody is doing tit-for-tat strategies, then that could escalate and lead to a downturn, a recession in major economies, it could lead to a global recession.
“That is an extreme scenario. Everyone is aware of that [risk] and they don’t really want it.”
LATEST ON TRUMP’S TARIFF PLAN
Trump holds an executive order about tariffs increase, flanked by U.S. Commerce Secretary Howard Lutnick
Reuters
