European leaders prepared for US tariff .
Trump said tariffs against the three largest US business partners, who take effect on Tuesday, could cause short -term pain, but “in the long term, the United States has been scammed by practically all countries in the world.”
Global stock markets and coins fell on Monday about concerns that tariffs would trigger an economically harmful commercial war. The Stoxx 600 Paneuropeo Index fell 1.3 percent in the morning trade, established for its highest one -day slide this year and the futures for the S&P 500 Wall Street fell 1.4 percent.
Speaking at his Mar-A-Lago farm in Florida on Sunday, Trump indicated that the European Union of 27 nations would be the next in the shot line, but did not say when.
“They do not take our cars, they do not take our agricultural products. They take almost nothing and take everything away, ”he told reporters.
EU leaders gather at an informal summit in Brussels on Monday said Europe would be prepared to defend themselves if the United States imposes rates, but also requested reason and negotiation.
Upon reaching the conversations, the French president, Emmanuel Macron, said that if the EU was attacked in their commercial interests, it would have to “become respected and, therefore, react.” He added that the recent statements of the United States were pushing Europe to be stronger and more united.
Chancellor Olaf Scholz in Germany, the largest EU economy that depends large They will find an agreement on trade.
Luxembourg's prime minister Luc Frieden said: “I think tariffs are always bad. Tariffs are bad for trade. Tariffs are bad for the United States. “
Trump hinted that Great Britain, who left the EU in 2020, could be tariffs, saying: “I think one can be resolved.”
USA The Commercial Deficit of Ee. UU. It stood at 155.8 billion euros ($ 161.6 billion) in 2023, according to Eurostat data.
Get last minute national news
For the news that affects Canada and worldwide, register to receive news alerts that are given directly when they occur.
However, in services, the United States had a surplus of exports on imports with the EU of 104 billion euros.
The EU Foreign Policy Chief Kaja Kallas said there were no winners in a commercial war, saying that if one exploded between Europe and the United States, “then the laugh on the side is China.”
Tariffs on Canada, Mexico and China, described in three executive orders, will take effect at 12:01 am et on Tuesday.
Trump said he would speak Monday with the leaders of Canada and Mexico, who have announced their own retaliation rates, but minimized the expectations that they would change their minds.
“They owe us a lot of money, and I'm sure they will pay,” Trump told reporters.
Economists said that the republican president's plan to impose 25 percent tariffs on Canada and Mexico and ten percent of rates in China would slow down global growth and raise prices for Americans.
Trump says they are necessary to stop immigration and narcotics traffic and stimulate national industries.
The reaction of the financial market on Monday reflected the concerns about the consequences of a commercial war. The actions in Tokyo ended the day lowering almost three percent and the reference point of Australia, often a proxy trade for Chinese markets, fell 1.8 percent. The continental China market was closed for New Year's lunar vacations.
The Chinese yuano, the Canadian dollar and the Mexican peso collapsed against a dollar rising. With Canada and Mexico, the main sources of US oil imports. UU., American oil prices Clc1 jumped more than 1%, while RBC1 gasoline futures increased almost three percent.
Trump tariffs will cover almost half of all imports from the USA and will require the United States to double more of their own manufacturing output to cover the gap, an unfeasible task in the short term, they wrote analysts ING.
Other analysts said that tariffs could take Canada and Mexico to the recession and trigger the “stagflation”: high inflation, stagnant growth and unemployment high) at home.
In Europe, Deutsche Bank economists said they were currently taking into account a 0.5 percent blow to the Gross Domestic Product (GDP) in case Trump imposes ten percent tariffs in the block.
An informative sheet of the White House did not give details about what Canada, Mexico and China would need to do a relief.
Trump promised to keep them in place until he described him as a national emergency about fentanil, a deadly opioid and illegal immigration to the United States end.
China called Fentanyl America and said it would challenge tariffs in the World Trade Organization and take other countermeasures, but would also leave the door open for conversations.
Mexican President Claudia Sheinbaum promised resilience and said she would provide more details on Monday of the retaliation rates that she ordered the weekend. Canada said it would take legal actions under relevant international organizations to challenge tariffs.
Automobile manufacturers would be particularly affected, with new tariffs in vehicles built in Canada and Mexico, carrying a vast regional supply chain where the pieces can cross borders several times before the final assembly.
The actions in Volkswagen Vowg_p.de, BMW bmwg.de, Porsche P911_P.de, Stellantis Stlam.mi, and truck driver Daimler Truck Dtgge.de fell between five and six percent in the European negotiation on Monday.
Stifel investment bank analysts estimated that eight billion euros of VW's revenues would be affected by tariffs and 16 billion euros of Stellantis.
The actions of the United States. The great technological actions were also lower ahead of the US Open, with Microsoft, Alphabet, Amazon and Apple, between 1.5 % to two percent.
Trump imposed only a duty of ten percent of energy products.