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Trump's New Tariffs Spark Global Market Jitters
19 Jan
Summary
- New US tariffs proposed on eight European countries.
- Markets show pressure; currencies and equities decline.
- Chinese economic growth expected to be weakest in three years.
Asian markets experienced pressure early Monday following President Donald Trump's proposal of new tariffs targeting eight European countries. This action has diminished investor risk appetite and increased demand for safe-haven assets, with the pound and euro showing notable losses against the dollar.
Analysts express concern over the escalating trade tensions, warning that a full-blown trade war between the EU and the US would result in widespread losses. The uncertainty surrounding these new tariffs comes as Chinese economic data is expected to reveal the slowest quarterly growth in three years for the final quarter of 2025.
Market participants are now anticipating the European opening, with regional equities expected to be significantly impacted. Some strategists view Trump's actions as a negotiating tactic ahead of the World Economic Forum, suggesting potential for a de-escalation.
