The main liquidations in markets around the world preceded the United States. European actions deviated towards a correction, since 10% of recent maximums decreased. Asian markets also racked.
The raids represent a surprising turn of the events for a presidential administration that was expected to have “business business business” policies in its foundation. On the other hand, Trump is betting that tariffs will force companies to relocate manufacturing and production on the US coast, a result that most business leaders and economists say it is practically impossible to achieve at a scale that Trump wishes and, instead, will lead to calamity.
The early morning of Friday, he announced that he was imposing tariffs on the goods brought from the US.
While some expect the hope that Trump is using tariffs as a negotiation tactic, the possibility of at least short -term economic interruption now seems safe.
And Trump has continued to reach a challenging tone in response to market agitation and criticism of global leaders.
“My policies will never change,” Trump published on social networks on Friday.
Many in Wall Street forecast great economic interruptions. Dan Iives, Wedbush analyst Securities Financial Group, wrote in a note on Friday morning that Trump’s shock will lead to an “economic armedon” if he does not retire.
“We have never … seen a self -inflicted debacle of epic proportions such as Trump’s list of tariffs in the last 36 hours,” he wrote.
JPMorgan analysts published a research note, entitled “There will be blood”, saying that the probabilities of a 60% global recession increased in response to Trump’s rates shock.
“A turn towards the precaution of households along with a fall in commercial spending could push the economy to the recession next quarter,” bank analysts wrote.
Even before Wednesday’s announcement, uncertainty about Trump’s policies had already caused the feeling of business and consumers to Plummet. Persistent questions about how long the new tariffs will be maintained in their place are exacerbating the fears of a dramatic deceleration.
“The intensity of downward risks … is still quite substantial,” said Torsten Slok, chief economist of Apollo Global Management, in a presentation on Friday.
