Markets Slide as Trump Imposes Tariffs, Warns UK on Trade

By Evans Momodu
2 minute digest


Global markets fell sharply on Monday following Donald Trump’s announcement of new tariffs on Canadian, Mexican, and Chinese imports, raising fears of a broader trade war.

Japan’s Nikkei opened 2.9% lower, while Australia’s benchmark index—often viewed as a proxy for Chinese markets—dropped 1.8%. Hong Kong stocks, which include major Chinese companies, declined 1.1%.

"Trump’s trade war has started," said Alvin Tan, head of Asia currency strategy at RBC Capital Markets in Singapore.

The U.S. president confirmed over the weekend that imports from Canada and Mexico would face a 25% tariff, while Chinese goods would be hit with a 10% levy. Both Canada and Mexico have responded with retaliatory tariffs.

Trump also warned that tariffs on the European Union are inevitable, adding that the UK is "out of line" on trade with the U.S. but expressing hope that the issue "can be worked out" without additional tariffs.

Speaking ahead of discussions with Canadian and Mexican leaders, Trump cautioned them against retaliatory measures, stating: "We can play the game all they want."

Despite pushback from trading partners, Trump dismissed concerns upon returning to Washington from Mar-a-Lago, reiterating his stance.

"I love the people of Canada. I disagree with the leadership of Canada. And something's gonna happen there," he said.

He also suggested that Americans could experience "some pain" from the trade dispute but insisted that the tariffs were necessary for U.S. economic strength.

In a Truth Social post, he wrote: "WILL THERE BE SOME PAIN? YES, MAYBE (AND MAYBE NOT!). BUT WE WILL MAKE AMERICA GREAT AGAIN, AND IT WILL ALL BE WORTH THE PRICE THAT MUST BE PAID."
Source: Sky news