Trump Prices

New tariffs: What entrepreneurs need to know to protect their business

New tariffs: What entrepreneurs need to know to protect their business

Financial markets recorded significant falls after President Donald Trump's announcement of new commercial tariffs. The measure imposes tariffs 25% About products from Mexico and Canada (10% for Canadian energy products) e 10% About Chinese Imported, effective from the dawn of Tuesday (Washington time, DC).

Market reaction

Global scholarships responded with expressive falls, reflecting concern with the impacts of the decision:

  • ACTIONARY INDICES: O S&P 500 retreated more than 1,5%, Japanese Nikkei fell 2,7%, to the stoxx 600 European had a loss of 1,2%. In the US, Dow Jones fell almost 500 points (nearly 1%), o Nasdaq 100 it lost 2% and Russell 2000, which represents minor companies, it fell 1%.
  • Most affected sectors: The automotive industry and the alcohol sector led losses, Impacting companies such as General Motors and Constellation Brands.
  • Commodities: Oil rose more than 2,5% and natural gas advanced almost 9%, reflecting the impact on Canadian exports. The price of oats increased 5%, Due to the high dependence on imports in Canada.
  • Cryptocurrency: The global capitalization of cryptors fell 8,8% nas 24 hours following the ad, According to Coingecko.
  • Volatility: The Cboe Volatility Index Index, known as the “fear meter” The Wall Street, rose above 19, indicating expectation of greater instability in the markets.

Currency impact

The decision strengthened the US dollar, that reached its highest level in more than 20 years against the Canadian dollar and also valued about Mexican weight and other global currencies.

Change in trade policy

The new round of tariffs represents a reformulation of the American trade:

  • NAFTA (1994): Created to maximize regional trade.
  • USMCA (2020): NAFTA RENEGOCIATION, focusing on US interests.
  • Rates of 2025: Redefinition of Commercial Policy, with a focus on economic self -sufficiency.

Official justification and perspectives

Executive Decrees justify tariffs as a response to opioid trafficking. No Sunday, Trump acknowledged that American consumers could feel “some pain” with tariffs, but stated that “VALUE THE PRICE”. Goldman Sachs analysts evaluate that tariffs can be temporary, If the efforts to combat Fentanil advance.

The application of tariffs raises questions about possible future adjustments. If the goal is to encourage the relocation of factories for the US, a clearer positioning may be necessary for your permanence.

Conclusion

The adoption of these rates reaffirms the government's ability to implement significant trade changes. The economic impact will be closely monitored, while markets adjust their strategies in the face of this new global scenario.

Credits: Axios Markets / Emily Peck e Felix Salmon / NBC News

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