Trump will talk to Trudeau and Sheinbaum before some tariffs are already noticed in the markets

The president of the United States, Donald Trumphe plans to speak Monday with his Mexican counterpart, Claudia Sheinbaumand the Prime Minister of Canada, Justin Trudeaubefore its announced enters into force 25% tariffs to imports from both neighboring countries, a Commercial War that the president justifies for the “great threat of illegal foreigners and mortal drugs.”

“I will talk to Prime Minister Trudeau tomorrow morning, and I will also talk to Mexico tomorrow morning. And I don’t expect anything very dramatic. We put tariffs. They owe us a lot of money And I’m sure they will pay, “Trump told the media this Sunday night.

Sheinbaum and Trudeau, on the other hand, have talked this weekend between them after the imposition of tariffs announced by Trump, in a call in which they addressed the “importance of preserving the competitiveness and prosperity of North America” ​​and “the respective efforts to improve border security and combat the production and distribution of illegal drugs. “

This was indicated by a note released by the Trudeau office, whose executive has already announced 25% tariffs About US products in response to Trump. At the moment, Sheinbaum has not specified what the promised response of Mexico will consist of. Trump, in any case, signed on Saturday the executive orders to impose 25% tariffs on Mexico and Canada and 10% to China, a measure that, has admitted, can cause “Pain” in the short term to Americans.

Impact on markets

Meanwhile, the effects of Trump’s tariff war have already begun to notice in the markets. He dollar has climbed this Monday until almost equating the euro, pushing the Canadian dollar and al Mexican weight to its minimums in several years, while the Chinese yuan It has fallen to a minimum record in foreign trade. In turn, the Indian rupee It has reached its historical minimum on Monday, changing to 87 units to US dollar in international currency markets.

The Asian bagsin turn, they fall strongly: the main index of the Tokyo bag, the Nikkei2.66% collapsed in the session on Monday, while the reference index of the Hong Kong bag, the Hang Seng1.08% lost on Monday to the rest of the half session.

Also the Spanish bag has fallen At the opening a 2.09 %, as well as the rest of European markets. At the opening, with the euro, quoting at $ 1,0228 after 1.35%, its lowest level since November 2022, the IBEX 35 has subtracted 259 points, 2.09%, and has been below Of the 13,000 points, at 12,127.1 points. Similarly, Trump announced tariff Frankfort bag and the selective Dax 40 lost 2.2% at the opening at 21,256 points.

The markets, in addition to the distortions that US tariffs and Canada’s responses and medical in world trade can cause, fear that this is the beginning of a series of similar measures that also affect the products of the eurozone. Trump himself insisted this Sunday in his tariff threat to the EU: “It will definitely occur with the European Union. I can say that because they have really taken advantage of us,” he said.

Between tranquility and “absurd”

Given this both Spanish and European leaders have gone up. In the case of the Foreign Minister, José Manuel Albares, He has offered a message of tranquility, since Europe “we have the instruments to defend ourselves from any type of commercial aggression,” while its counterpart in economics, Carlos Body, has assured in Al Rojo Vivo that will work to “defend our companies and that compete in conditions of equality.” From Germany, its president, Olaf Scholzhe says that “responding to customs policy with customs policy” must be.

All within the framework of “Trump’s commercial war” that some international media such as the ‘Financial Times’ play “absurd”. In that line, ‘The Wall Street Journal’ also defines it as the “most silly in history”, while in ‘The Economist’ they talk about “shock for the global economy.” What is clear is that this scenario is seeing how economic nationalism reflores.

Source: Lasexta

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