“Mutual” duties announced by the US leader Donald Trump have the markets shared the markets world financial, causing a sales tsunami to Wall Street, Europe and also in Asia. But the President shows himself quiet and ensures that the bags “will fall” and that the American economy “will have a boom”, despite the warning of Fitchwhich sees an increase in the risks of recession of the USA.
Fitch: duties increase “significantly” recession risk
In a comment to the duties announced by Trump, Fitch Ratings underlines that they have reached “levels that are transforming global economic prospects, significantly increasing the risks of recession in the United States and limiting Federal Reserve’s ability to further lower interest rates “.
“We estimate that the changes will increase on average the actual tariff rates of the Unit States to about 25% – underlines the Agency of Ratings – which would be significantly higher than 18% hypothesized for 2025 in the March report and the highest rate for over 115 years”. There growth of the US economy is now estimated by Fitch below 1.7% scheduled last March.
The collapse of the markets
The reaction of the markets The duties announced by Trump was violent. The European bags yesterday they have burned about 422 billion of dollars, cn Piazza Affari which left 3.6%on the parterre, more than Paris and Frankfurt who gave up over 3%. Wider losses for Wall Street who sent In smoke about 2 thousand billion dollarswith the S&P 500 who lived the worst seat from the outbreak of the pandemic, losing 4.8%, while the Nasdaq is 6%backward and the Dow Jones around 4%. Asia was not saved, with Tokyo he left 3%on the ground.
Trump’s strategy he didn’t even help the dollarthat on the perspective of recession of the US economy and a Fed policy at unchanged rates, if not even increasing, has lost land against the main world currencies, pushing the euro beyond the threshold of 1.10 USD. The Dollar Index still gives signs of weakness (-0.05%) to 101.7 from 103.3 on Wednesday.
Black day also for the petroliumwho has sold up to 7%, also due to the OPEC+ which has announced a production increase starting from the month of May.
Trump reassures: markets will calm down
The president Trump He commented on the reaction die markets with great tranquility, affirming they will calm down and that the duties are a very positive thing for the markets and for the economy in general. “I said it would be exactly like that,” said Trump, in a very short briefing with the press, adding that the “Mercati are about to know a boom” And “The whole country is about to know a boom.”
“It will be incredible”assured the US leader, adding “What people have to talk about is that we are investing almost seven thousand billion dollars In our country, and you will see how it will end. Our country is experiencing a boom ”.
“The whole world wants to see if there is a way to make an agreement,” explained Trump, who adds “have taken advantage of us for many, many years. For many years we have been on the wrong side of the field”. While traveling, Bloomberg reports, Trump would open to the possibility of a agreement in exchange for something “phenomenal”. To the question he was considering selling Trump said “depends”. “The rates give us a great power to negotiate,” said the US leader, adding “Every country has called us”.
