Börsen crash threatens: Trump's tariffs shaken the global economy!

Börsen crash threatens: Trump's tariffs shaken the global economy!

Kanada, Land - The global stock exchanges are currently experiencing massive losses that are directly due to the introduction of new tariffs by US President Donald Trump. Russia presented itself at the so -called “Liberation Day” as the goal of sharp trade measures, in the hope of strengthening domestic production and increasing pressure on foreign markets. Gunter Deuber, chief economist of the RBI, reports that the price gains of a whole year were almost completely destroyed by these tariffs. In his warning to investors, Deuber indicates that the downward potential for the markets has not yet been fully exhausted.

Among the new measures are 25 percent tariffs on goods from Canada and Mexico and an increase in tariffs to Chinese products from 10 to 20 percent. These steps aim to make foreign goods more expensive and promote the American industry. Canadian and Mexican companies in turn react with retaliation tariffs to US goods, which could potentially endanger economic stability. These developments create a worrying situation: Financial markets, for example, have already recorded significant declines that Dax fell by around 2.5 percent, while the European Auto Index lured almost four percent.

trade war and its global effects

The votes of the experts warn of a possible global economic crisis in the event of a further escalation of the trade war. Above all, the industrial sector, small companies and highly rated technology companies could suffer from the new trade restrictions. Companies such as Ford, GM, Nvidia and Apple face higher component prices, which influences their competitiveness and could possibly lead to an increase in consumer prices. Ultimately, this could also reduce the purchasing power of consumers, according to Deutber and other analysts.

The international currencies are also under pressure, with the Mexican peso down on the deepest level since 2022. Deutber emphasizes that many US companies that are strongly integrated into international supply chains will suffer from a massive cost pressure. China has already announced that it will raise tariffs on US imports such as meat, grain and dairy products, which should further tighten the tensions.

The way forward

Deber and other analysts agree that a sensible negotiation approach between Trump and the European and Chinese partners is necessary. A suspension of the tariffs could not only calm down the market, but also enable an increase in international political cooperation, which is essential for recovery on the stock exchanges. Without coordinated reactions from the central banks, especially the ECB in a possible US recession, it could be difficult to stabilize the markets.

The global effects of the trade wars are dramatic. Customs and other trade restrictions would make production more expensive and affect the competitiveness of companies. In order to alleviate the negative effects, the promotion of bilateral trade agreements and more commitment to political discussions is crucial. This is the only way to avoid long -term damage in the global economy and maintain growth, which is a significant challenge in view of the forecast declines in the growth rates of -0.5 % in China, -0.3 % in Germany and -0.2 %.

For more information and detailed analyzes on the topics described, you can do the articles on Krone , T-Online and Nadr Visit.