After customs duties … Wall Street is declining and losses of American companies’ shares

The Wall Street Stock Exchange in New York recorded a significant decline at the start of trading on Thursday morning, the day after the US President’s announcement was imposed on various countries of the world, which raises the fear of slowing down the American economy and high inflation.
The Dow Jones Index decreased by 2.81%, while the Nasdaq index lost 4.06%and the S & B 3.39%.
The shares of American clothing companies that depend on supply chains in China, Vietnam, Malaysia and other countries also decreased on Thursday.

Companies shares are falling

The shares of companies such as Nike, Gab and Misis fell more than 10% after Trump announced the imposition of heavy customs duties on the countries from which these companies import shirts, pants and other commodities.
Among the most prominent losers is the company “Apple”, which relies heavily on its products on Chinese manufacturers, and its shares fell by 8.2%.

Amazon shares decreased by 6.9%, while Inviteia’s shares lost 4.9%.

Markets are not ready

“It is clear that what was announced about it was closer to the worst scenario and the markets were not ready for that, and interact accordingly,” said Angelo Corcavas, the chief investment strategy in Edward Jones.
Jason Xinker of Prestige Economics confirmed in a memorandum that the Trump administration may drop the fees later after negotiations on trade or other political priorities.
He added: “We see that the Trump administration policies embody economic realism that focuses on results, rather than diplomacy that focuses on the process.”
He warned against “increasing the risk of recession and inflation with uncertainty about customs duties.”