Styropendes around the world fall even more on Friday after China reacted to a significant increase in tariffs introduced by US President Donald Trump in the rise of the trade war. China’s answer to American tariffs caused immediate acceleration of losses in world markets.
The Beijing Ministry of Trade said that it would respond to 34% of China imports with its own 34% of the import of all US products from April 10. The United States and China are the two largest economies in the world.
The intensification of a commercial conflict between the United States and China accelerated the fall of the German DAX index on Friday in the afternoon. According to information from the German information agency DPA, with a fall of more than 1000 points, or good 5%, by a daily minimum of 20,590 points, the main German index increased its weekly reduction to about 8%.
Tim Oekhsner, an expert on the capital of Stebing AG, said that this symbolizes the current “high volatility”.
European actions recorded one of the highest losses of day, and the rates fell by about 5%. The price of gross oil fell to the lowest level from 2021.
The largest Spanish scholarship market, IBEX35 (Iberian index) also registered a drop in 5.83% on Friday. In the middle of the IBEX35 trading session, he received a sharp fall, up to 12,500 points, as he also received a decisive blow as a result of the US tariff war.
The Spanish selective index was the one that would be better opposed by the effects of tariffs announced on Wednesday evening, falling by 1.2%of the fall compared to their European analogues, which were registered on an average of 3%.
France also suffered, with the largest market, CAC 40, fell about 4.3%, in the fact that it was the largest weekly loss of European actions in recent years. And Lisbon (PSI20) registered a fall by 4.75%.
French President Emmanuel Macron headed the European reaction and called on all French companies to suspend planned investments in the United States.
Robert Habek, the Minister of Acting of the German Economy, repeated the same feeling, adding that Trump is “succumbing to pressure” if Europe unites in his response.
Nevertheless, the Minister of Finance of France Eric Lombard warned that he could not take retaliation against Washington’s customs rights, warning that this would also have consequences for European consumers.
The European Trade Commissar Maros Sefkovich said that he had a two -hour conversation with US secretary Howard Lutnik and US commercial representative Jamison Gerer.
“It was clear: the US fee was harmful and unjustified,” said Sefkovich in a post on the platform of social networks, X. “The EU is committed to significant negotiations, but is also ready to protect our interests.”
Trump’s aggressive tariff policy, aggravated by Beijing, also caused a significant blow to the American markets.
S&P 500 fell by 322.44 points to 5 074.08 – about 6% – closing a week in a low level since March 2020, when the pandemic of coronavirus reached the global economy.
Dow Jones Industrial Averag fell by 2231 points, or 5.5%, while the NASDAQ Composite fell by 5.8%, which is more than 20%lower than its record in December.
To date, financial markets have few or not winners with the trade war at all. The shares of all 500 companies in the S&P 500 index, with the exception of 14, fell on Friday.
The price of gross oil has decreased to the lowest level from 2021. Other main building blocks for economic growth, such as copper, also saw how prices fall from -with fears that the trade war will weaken the world economy.
Trump gave conflicting signs of this. On Friday, he said that Vietnam “wants to reduce his bets to zero if he could make a deal with the United States.”
Trump also criticized the retribution of China, saying on his platform of social truth that “China played badly, panicked – the only thing you cannot do!”
Trump says that the Americans can feel the “pain” from the tariffs, but added that long -term goals, including the return of more jobs in the transforming industry of the United States, is worth it.
On Thursday, shortly after the scholarship markets began to plunge after the announcement of global tariffs, Trump compared the situation with the medical operation, where the US economy is a patient, implying that everything will become worse before they begin to improve.