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Market Turmoil Amid Trade War Fears
2025-03-14 10:30:12
Markets
Economy

Market Turmoil Amid Trade War Fears

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European stocks faced declines due to escalating concerns over the US-EU trade war, exacerbated by President Trump's tariff policies. The ripple effects reached Canada, prompting retaliatory measures against US goods.

Asian markets mirrored this sentiment, grappling with fears of slowing inflation and potential recession in the US. Investors reacted to disappointing inflation figures, anticipating interest rate cuts.

Amidst this turmoil, corporate earnings presented a mixed scenario; companies like Hugo Boss and Generali Group reported strong results, while Enel is set to release its earnings. Goldman Sachs adjusted its S&P 500 target downward, highlighting the increased risks associated with higher tariffs and reduced GDP growth forecasts.

Overall, uncertainty prevails, as market participants navigate through complex economic challenges.

Related news on that topic:

Trump's Trade War: Tensions with the EU Intensify

The trade conflict between the United States and the European Union has reached new heights as President Donald Trump imposes 25% tariffs on steel and aluminum imports. This move directly affects the EU, prompting immediate retaliatory tariffs on American goods. Brussels is focusing on products from Republican-led states, with symbolic items like Harley-Davidson motorcycles and soybeans being targeted. The EU, led by Commission President Ursula von der Leyen, plans to implement strong yet proportionate measures starting April 1. The conflict has sparked concerns from various sectors, including the spirits industry, which faces potential 200% tariffs on European wine and champagne. This has already resulted in significant capital losses for European alcohol producers. Trump's strategy aims to pressure the EU into concessions, bolster domestic production, and address trade imbalances. However, these tariffs also impact American companies by increasing production costs in industries like electronics and automotive. European leaders, including German Chancellor Olaf Scholz, have criticized the tariffs, urging for a swift and appropriate response. The business community on both sides of the Atlantic is pushing for de-escalation, fearing the negative impact on jobs and economic growth. While some countries like the UK and Japan have opted for a more cautious approach, Canada has filed a complaint with the World Trade Organization, seeking resolution. Meanwhile, there is a call for more trade agreements rather than tariffs, to prevent further economic fallout. As the trade war escalates, the global economy faces heightened uncertainty, with markets reacting negatively and the risk of recession looming.

Trump's Tariff Escalation Ignites Global Trade Tensions

The trade landscape has dramatically shifted with Donald Trump's imposition of 25% tariffs on steel and aluminum imports. This move has triggered a chain reaction, escalating tensions with key global players. The European Union swiftly announced retaliatory tariffs on American goods, aiming to protect its economic interests while demonstrating resilience against perceived economic aggression. Simultaneously, Canada has moved forward with counter-tariffs targeting U.S. exports, signaling a firm stance against the U.S. measures. Other nations like Mexico and Brazil, while initially refraining from immediate retaliation, have expressed concern over the potential long-term impacts on their economies. The tariffs particularly threaten industries reliant on these metals, including automotive and aerospace, by increasing production costs. Trump's aggressive tariff strategy aims to bolster domestic manufacturing by coercing trade concessions. However, it risks inflating costs for U.S. businesses and consumers, potentially leading to broader economic repercussions. The tariffs have also stirred fears of a recession, as market uncertainties grow and global supply chains face disruptions. In a bold response, Trump has threatened additional 200% tariffs on European wines and spirits if the EU does not revoke its levies on American whiskey. This has sparked fears of further destabilizing international trade relations. European spirits producers and other affected industries have voiced significant concerns over the potential economic fallout. The escalating trade tensions underscore the fragile nature of international economic relationships and the potential for prolonged economic strife. As both sides brace for further conflict, the global economy watches closely, wary of the repercussions these tariffs might unleash.

Read 16 more recent news on this topic

The press radar on this topic:

EuroNews
13. März 2025 um 12:03

European stocks fell on concerns over the US-EU trade war

Economy
Finance
Politics
European stocks fell on concerns over the US-EU trade war. Trump's tariffs against the EU caused Canada to retaliate against US goods as well. Asia-Pacific markets also lost value due to concerns about slowing inflation and recession in the US. However, while inflation in the US fell short of expectations, investors priced in interest rate cuts. Corporate earnings, on the other hand, showed a mixed trend: Hugo Boss and Generali Group reported good results, while Enel will also announce its ear..
New York Times - Business
14. März 2025 um 09:02

The Upside-Down Line That Tells the Story of the Stock Market Now

Politics
Finance
Economy
President Trump's economic policies have led to a stock market decline, with the S&P 500 index dropping sharply since Feb. 19. The Nasdaq and Russell 2000 indexes had already entered correction territory before Thursday, fueled by uncertainty surrounding Trump's tariffs. A pro-growth agenda implemented after an energy crisis led to tepid growth in 2017, but now investors are hesitant due to Trump's immigration policies and firings of federal employees, potentially impacting long-term job growth.
The Street
13. März 2025 um 23:30

Goldman Sachs revamps S&P 500 target after tumble TheStreet Daily Newsletter

Economy
Finance
Trump's tariff policies impact US-Canada/EU trade, raising uncertainty. Goldman Sachs cuts S&P 500 target, citing reduced GDP growth forecast, higher tariff rates, and increased equity risk premium. Egg prices surge 59% year-over-year, a political issue. Wells Fargo focuses on recovery for cyclical equities and commodities. Nasdaq 100 tumbles into correction, Citigroup and HSBC downgrade US equities. JPMorgan Chase and RBC Capital Markets temper bullish calls for 2025. Goldman Sachs raises Stoxx..
The Street
14. März 2025 um 01:30

Stock Market Today: Stocks slip with inflation data, shutdown in focus TheStreet Daily Newsletter

Finance
Economy
Politics
Technology
Stocks slip on inflation, shutdown, trade war; Treasury yields, dollar rise; Fed policy, producer prices eyed; Intel CEO change; tariff fears, recession concerns; trade war, Canada tensions; February inflation, Wall Street's losing streak; Schumer opposes GOP shutdown plan.
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