As global trade uncertainty intensifies, wine sales are poised to benefit from the economic volatility, while US cities in red states could be hit hard by Canadian retaliatory tariffs.
The Dow Jones Industrial Average fell 1.7% and the S&P 500 dropped 2%, with all three indexes in the red for the week.
Tech stocks led the declines, with the Nasdaq Composite down 2.7%.
Markets are anxiously awaiting next week’s tariffs, which would represent President Trump‘s biggest salvo to date.
Tariffs are taxes imposed on imported and exported goods by a country's government.
They aim to protect domestic industries, generate revenue, and balance trade deficits.
The World Trade Organization (WTO) regulates tariffs, setting limits on their use.
Tariff rates vary worldwide, with some countries imposing high tariffs to shield local producers.
For instance, the US has imposed tariffs on Chinese goods, citing unfair trade practices.
In contrast, the European Union has implemented a common external tariff for its member states.
President Trump reiterated his plans to impose reciprocal tariffs on Canada and India, despite a ‘very good’ call with Canadian Prime Minister Mark Carney.
The EU is working on a ‘term sheet’ of concessions for Trump to negotiate reciprocal tariffs.
Germany says ‘nothing is off the table’ in response to US tariff threats, including Big Tech crackdowns.
A new report found that US cities located in states won by Trump would be most hurt by Canadian tariffs, with potential economic fallout for red states.
JPMorgan warns that Trump‘s auto tariffs may be ‘worse’ for Ferrari, while Porsche and Mercedes-Benz could face a $3.7 billion hit.
Donald John Trump was born on June 14, 1946, in Queens, New York.
He earned a Bachelor's degree in Economics from the University of Pennsylvania.
Before entering politics, Trump worked as a real estate developer and businessman.
He served as the 45th President of the United States from January 20, 2017, to January 20, 2021.
During his presidency, Trump implemented various policies, including tax cuts and deregulation.
He also faced controversy over issues like immigration and healthcare.
Lululemon shares fell over 10% in premarket trading due to economic uncertainty and US tariffs on imports from ‘China and Mexico’.
Tesla’s stock rose 4% as investors cheered its relative insulation from the tariffs, while General Motors, Ford, and Stellantis were down sharply after President Trump‘s announcement of 25% tariffs on US auto imports.
Markets are bracing for the potential economic fallout from President Trump‘s tariff plans.
The EU is working to negotiate concessions with the US, but tensions remain high.
US cities in red states could be most affected by Canadian retaliatory tariffs.
