Shares collected more losses in Wall Street on Tuesday when a trade war escalated between the USA and its most important trading partners. A short setback in technology shares that do not reverse the total losses in the shaky global markets.
Shortly after midnight, the USA imposed tariffs for imports from Canada and Mexico and doubled the tariffs against imports from China, which triggered retaliation measures from all three countries and inflamed concerns about slowing down the global economy.
The uncertainty was reflected in a volatile trading day, with the main tactics index of Canada by 429.57 points or 1.7 percent.
The US markets were difficult early on a day, saw a slight back rim due to technological stocks and then again.
The S&P 500 decreased by 1.2 percent on Tuesday, with more than 80 percent of the shares in the benchmark index lower. The Dow Jones Industrial average was 1.6 percent.
The NASDAQ composite ended the day with a loss of 0.4 percent after a roller coaster ride with falls and climbed. The technical-feed index achieved a 10 percent decline compared to its recent final high, which the market regarded as correction before cutting off its losses.
The markets in Europe also decreased sharply, with the Germany’s Dax returning 3.5 percent when car manufacturers saw sharp losses. Shares in Asia listed more modest declines.
The latest declines in US shares have almost wiped out all profits from the markets since the election of US President Donald Trump in November -profits that were largely built up in the hope of Trump’s policy that would strengthen the US economy.
Both economists and Wall Street have weighed the worries about tariffs that increase consumer prices and re -inflation.
As part of the new tariffs, imports from Canada and Mexico are to be taxed to 25 percent, while Canadian energy products are 10 percent. The 10 percent tariff, which Trump put in February, was doubled to 20 percent.
Canada has already beat and promised American goods worth 30 billion US dollars to introduce tariffs for $ 125 billion more in three weeks. Prime Minister Justin Trudeau, citing a Wall Street Journal-Editorial, called Trump’s Targeting Canada a “very stupid” and added that more non-tariff measures come when Trump has not returned.
China has announced that there will be additional tariffs of up to 15 percent for imports from the most important US farm products such as chicken, pork, soy and beef and expanded control over business with important US companies. Mexico is also planning tariffs for goods from the USA, with further details being announced on Sunday.
LOONE is $ 0.69 compared to US dollars
The US dollar index has reached the lowest status since December 6, 2024, since the concerns about the effects of the tariffs on the broader US economy initially refered to the move.
“We saw that the dollar weakened, but I think this reflects the assumptions of the markets about how the tariffs will negatively influence, not only on external growth, but on … on US growth,” said Brian Daingerfield, foreign strategists at Natwest Markets in New York.
After he had reached a one -month low point after Trump’s confirmation of the tariffs in the late Monday, the Canadian dollar easily increased overnight, while investors fled to currencies in safe ports such as the Japanese Yen and the Swiss franc.
The Mexico peso fell on a fourth session in a row on Tuesday, and its benchmark index has been on the lowest in five weeks
Response through uncertainty
The uncertainty in connection with the trade war – unclear with experts how long tariffs and countermeasures could last – is one of the reasons why the market reaction was initially steamed according to an expert.
“What we do not know is the duration, and that is the key,” said Derek Holt, Vice President and Head of Capital Markets Economics at Scotiabank, in a note to customers. He added that Trump can be a volatile figure in relation to his decision -making, so it is unclear how committed he is to maintain the tariffs.
“If you keep it, the effects on the (North American) economy and the markets will be much larger. This may not take long, since the car sector that change cancellations and system closures can begin within about a week after arrival.”
Holt said that the retaliation measures taken by Canada, Mexico and China were not as extreme at this stage as what the United States had issued and limited part of the markets.
“Sand in the gears”
But there was already a “massive sale in the world markets,” said Colin Cieszynski, portfolio manager and chief market strategist at SIA WEATTH Management, compared to CBC News, whereby Europe saw “some rather significant outfit”, including losses of more than two percent in Germany and Italy.
“Customs do sand into the aisles of the global economy,” he said. “And that’s why we see shares everywhere that sell, because a trade war is bad for company income everywhere and for everyone.”
Colin Cieszynski, portfolio manager and chief market strategist at SIA WEATH Management, explains why US tariffs for Canada, Mexico and China influence the markets worldwide, and finds that “tariffs throw sand into the aisles of global economy”.
He found that some supply companies and telecommunications companies that are more insulated by trade wars due to a larger domestic focus have actually “increased a little”, which indicates that some investors shift their capital defensively.
If the tariffs remain for a year, Canada “would be exposed to the risk of a moderate recession,” said Douglas Porter, chief economist of the Montreal bank.
“In view of the lack of historical precedence, we estimate that the tariffs in Real -BIP growth in 2025 will reduce around 1.5 (percentage points) to around 0.5 percent,” he wrote in a note to the customers and added that this reflects the expected decline in demand for Canadian goods from US customers, which is about a fifth Canadian GdP from Canada.
Retailers, companies on alarm
The tariffs arrange for individual dealers, including Target and Best Buy, to warnings because they report their latest financial results. Target dropped 4.6 percent, although he defeated Wall Street for the winning forecasts and reported that the profit of “meaningful pressure” would be spent on the year due to tariffs and other costs.
Best Buy fell 14.1 percent after giving investors a weaker profit forecast and warning of tariff effects.
The car manufacturers, one of the industries that are probably the worst in the trade war, already reported losses on Tuesday. Ford and General Motors fell by 2.9 percent and 4.6 percent on Tuesday.
The Alliance for Automotive Innovation, a trading group that represents almost all major car manufacturers in the United States, warned on Tuesday that the trade war will lead to drastic price applications, with some vehicle models expected to increase by 25 percent.
The 25 percent tariff of US President Donald Trump on Canadian goods is expected to begin on March 4. The Adrienne Arsenault by Adrienne Arsenault of the national asks for journalists and a business professor to answer the viewers how the tariffs will affect prices, a possible recession and Canadian diplomacy.
At the consumer level in Canada, some effects were immediately. Numerous second-second retailers of alcohol have announced that they will roam their shelves of US products, including Newfoundland and Labrador, Manitoba and Ontario.
Ontario’s Liquor Control Board sells around 1 billion US dollars a year in US products in US products, said Ontario Premier Doug Ford on Tuesday.
Business owners in Canada observe the news before dismay. Steve Himel, President of the Henderson Brewing Company, told the CBC News Network that the company must already make changes to its annual business plan.
“We will experience this pain within days or weeks. But the uncertainty of it is something that we feel right in this minute,” he said. “Will it take a week or a month? We don’t know.”
