Doubts in stock markets about the seriousness of the Trump’s commercial war

Since the re -election of US President Donald Trump, global trade tensions have escalated after announcing the imposition of new customs definitions on US imports from Canada and Mexico by 25%, as well as imposing 10% fees on Chinese goods. This escalation by Trump has raised widespread questions about the seriousness of this trade war and its potential impact on global stock markets, according to the global “Yahoo Finance” website.

Stock markets

Despite the apparent escalation in the American commercial discourse, global financial markets did not show sharp declines, but rather some global indicators, such as stock markets in China, Mexico and Europe, excelled over the American S& P 500 index since the beginning of the year. This indicates that investors may consider Trump’s threats just a political pressure card or believe that the actual economic impact will be limited.
Also read: “Morgan Stanley”: America is the most affected by Trump customs definitions

The impact of trade war on stocks

However, some sectors were significantly affected, as major international drink companies have reduced profits due to uncertainty related to customs tariffs and poor demand. The shares of European car companies also witnessed a remarkable decline due to their significant dependence on the American market.

Analysts about the trade war

Some experts believe that the markets may have reduced the seriousness of this trade war, noting that weak reactions may reflect a prevailing belief that Trump’s threats are not fully serious, or that their long -term impact will not be large. However, there are concerns that the escalation of these policies will lead to high inflation rates and weakening economic growth, which may lead the American Federal Reserve to reconsider its monetary policies in the coming months.
Also read: Canada threatens an “immediate response” to American customs duties

Stock investors

In light of these commercial tensions, investors seek to protect their financial portfolios by focusing on the sectors that are less affected by customs tariffs, such as the technology and consumer services sector, as well as increasing investment in safe assets such as government bonds and gold, in anticipation of any possible deterioration in the markets.

Yahoo Finance concluded that despite the escalation of commercial threats by the Trump administration, financial markets are still coherent, raising questions about the seriousness of this trade war and its true impact on the global economy.
However, any sudden move or unexpected escalation may lead to severe disturbances, which requires investors to follow developments with caution and update their strategies according to developments.