Investors are preparing for an upcoming blow to corporate profits of companies in the United States and for accelerating inflationary pressures, after US President Donald Trump signed an order imposing higher tariffs on imports into the country from Mexico, Canada and China, Reuters reported, quoted by BTA.
Trump announced that he was introducing a national economic "emergency". Against the background of this measure, he imposed tariffs of 25 percent on imports from Mexico and Canada. Additional tariffs are being introduced on imports from China, which are 10 percent on top of the current tariffs.
An exception is allowed for the import of all energy products from Canada into the United States, Reuters points out. They will be subject to a 10 percent tariff, not 25 percent.
Against this backdrop, Canada and Mexico announced that they were imposing retaliatory tariffs on imports from the United States in response to Trump's decision.
For its part, China announced that it would challenge the imposition of higher tariffs by the United States at the World Trade Organization (WTO).
All of this could turn out to be the initial stage of a full-scale trade war. This situation is likely to create new problems for the leaders of North American companies, which have been trying to reduce their high production costs for several years, Reuters points out.
Higher tariffs on goods imported from countries that are major trading partners of the United States could lead to shocks in various sectors of the American economy - from the automotive industry to the production of consumer goods to energy.
"I think the markets will react (to the US president's decree on imposing higher tariffs - editor's note). So far they have been on Trump's side, but that could change and for the first time the markets may challenge his decision," said Mark Malek, chief investment officer of the New York-based financial services company "Siebert Financial" (Siebert Financial).