Stock market opens its second consecutive day of sharp declines due to tariff war
Europe also recorded losses, with only the Chinese stock market showing green numbers after the deadline for implementing tariffs passed.
A trader at the New York Stock Exchange.
U.S. stock markets began a second straight day of steep declines due to uncertainty for international trade caused by the tariff war. This Tuesday, tariffs of 25% on both Canada and Mexico were confirmed, while those imposed on China by order of the White House were increased to 20%.
After this, the Dow Jones began the day with a drop of 1.5%, standing at 32,500 points. Similarly, the S&P 500 opened with a 1.7% decline, reaching 3,900 points. The Nasdaq also recorded a 2% drop at the open, hitting 13,000 points.
In the main stock markets of the European Union and the United Kingdom, there were also declines due to the doubts generated by the White House's trade policies. The DAX Germany recorded a decline of 1.8%, settling at 14,800 points. The French CAC 40 was down 1.5%. The Spanish IBEX 35 fell more than 2% to 13,250 points.
The United Kingdom slightly mitigated its fall in its FTSE 100 and retreated less than its neighbors, down 1% to 7,000 points. European stock markets opened as usual six hours ahead of those in the United States.
Mexico and China respond to tariffs
In Canada, Canadian Prime Minister Justin Trudeau warned that his country will respond as of midnight by applying tariffs of 25% on $155 billion in U.S. goods. The tariffs will affect more than $918 billion in U.S. imports from Canada and Mexico.
Beijing also announced it will impose supplemental tariffs of 10 and 15% on various U.S. food imports such as soybeans, wheat and chicken.
"If the United States ... persists in raising a tariff war, a trade war, or any other kind of war, the Chinese side will fight it to the end," said Chinese Foreign Ministry spokesman Lin Jian.
Markets in China saw a slight jump. Shanghai Composite posted a marginal gain of 0.22% to 3,600 points. Shenzhen Component rose 0.28% to 14,800 points.
In the case of Japan, a key geopolitical player in the West, the Nikkei 225 closed down 1.2% at 28,500 points.
RECOMMENDATION
LATEST
