Tariff hikes unnerve Wall Street, markets prepare for fresh jolt | The Business Standard
Skip to main content
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
The Business Standard

Friday
July 25, 2025

Sign In
Subscribe
  • Latest
  • Economy
    • Banking
    • Stocks
    • Industry
    • Analysis
    • Bazaar
    • RMG
    • Corporates
    • Aviation
  • Videos
    • TBS Today
    • TBS Stories
    • TBS World
    • News of the day
    • TBS Programs
    • Podcast
    • Editor's Pick
  • World+Biz
  • Features
    • Panorama
    • The Big Picture
    • Pursuit
    • Habitat
    • Thoughts
    • Splash
    • Mode
    • Tech
    • Explorer
    • Brands
    • In Focus
    • Book Review
    • Earth
    • Food
    • Luxury
    • Wheels
  • Subscribe
    • Get the Paper
    • Epaper
    • GOVT. Ad
  • More
    • Sports
    • TBS Graduates
    • Bangladesh
    • Supplement
    • Infograph
    • Archive
    • Gallery
    • Long Read
    • Interviews
    • Offbeat
    • Magazine
    • Climate Change
    • Health
    • Cartoons
  • বাংলা
FRIDAY, JULY 25, 2025
Tariff hikes unnerve Wall Street, markets prepare for fresh jolt

World+Biz

Reuters
02 February, 2025, 08:40 pm
Last modified: 02 February, 2025, 08:48 pm

Related News

  • Trump pulls US out of UN cultural agency UNESCO for second time
  • Trump says he received $16 million payment after Paramount lawsuit settlement
  • Comedians support CBS 'Late Show' host Colbert, Jon Stewart rips Paramount
  • Trump accuses Obama of treason in escalating attacks over 2016 Russia probe
  • Trump strikes trade deal with Japan to cut tariffs

Tariff hikes unnerve Wall Street, markets prepare for fresh jolt

With Mexico and Canada - the US's top two trading partners - vowing immediate retaliation and China saying it would take "counter measures", the scene was set for a round of turbulence

Reuters
02 February, 2025, 08:40 pm
Last modified: 02 February, 2025, 08:48 pm
A trader works at the New York Stock Exchange (NYSE) next to a US flag, after Republican Donald Trump won the U.S. presidential election, in New York City, US, 6 November 2024. Photo: Reuters
A trader works at the New York Stock Exchange (NYSE) next to a US flag, after Republican Donald Trump won the U.S. presidential election, in New York City, US, 6 November 2024. Photo: Reuters

Global markets are set for a fresh jolt tomorrow after US President Donald Trump launched a trade war with sweeping tariffs on Canada, Mexico and China that threaten to undermine economic growth and reignite inflation.

With Mexico and Canada - the US's top two trading partners - vowing immediate retaliation and China saying it would take "counter measures", the scene was set for a round of turbulence.

Markets were dealt a blow last week as the emergence of China's DeepSeek AI model hit tech stocks, and uncertainty around Trump tariffs has weighed on broader markets.

The Business Standard Google News Keep updated, follow The Business Standard's Google news channel

The risk of a global trade war could hurt US corporate profits and pressure inflation, potentially upending U.S. interest rate cut expectations, and further weaken currencies such as the Canadian dollar and China's yuan.

"I do think the markets are going to react to this," said Mark Malek, chief investment officer at Siebert Financial in New York. "Until now the market has really been on Trump's side, but that could change and the market could challenge him for the first time."

In three executive orders, Trump imposed 25% tariffs on Mexican and most Canadian imports and 10% on goods from China, starting on Tuesday.

Canada said it would respond with 25% tariffs against $155 billion of U.S. goods, beginning with $30 billion taking effect Tuesday and $125 billion 21 days later.

"It's negative for CAD, MXN and CNH, as well as overall risk," Nick Twidale, chief market analyst at ATFX Global in Sydney said referring to the Canadian, Mexican and Chinese currencies.

He anticipates sizeable moves in currencies when Asian markets open after hopes for a reprieve were dashed.

Canada's dollar has been in the firing line in recent days, hitting five-year lows around 1.459 per dollar last week .

Mexico's peso would suffer a near-12% fall if the U.S. hits the country with 25% trade tariffs, JPMorgan estimated in a note published on Friday. The Mexican peso was trading at around 20.6 per dollar late Friday.

Analysts also expect some kind of selloff in stocks and other higher-risk assets when markets reopen on Monday.

Gene Goldman, chief investment officer at Cetera Financial Group, said the combination of high valuations, the impact of tariffs on inflation and the effects on Federal Reserve policy would contribute to declines.

With the S&P 500 near all-time highs, the index could move 3% to 5% in either direction in the short term, Evercore ISI strategists said in a note.

Tariff pain

Barclays strategists previously estimated that the tariffs could create a 2.8% drag on S&P 500 company earnings, including the projected fallout from retaliatory measures from the targeted countries.

The executive order includes a provision for Trump to increase the size and scope of the tariffs if countries affected seek to retaliate.

Goldman Sachs economists have estimated that across-the-board tariffs on Canada and Mexico would imply a 0.7% increase in core inflation and a 0.4% hit to gross domestic product.

The potential to drive up consumer prices is a particularly sensitive area for investors, who are worried about a revival in inflation causing the Federal Reserve to stop cutting rates.

The Fed last week paused its rate-cutting cycle, while Fed Chair Jerome Powell said officials were "waiting to see what policies are enacted" with the new president.

European Central Bank policymaker Klaas Knot said on Sunday he expects new tariffs will lead to higher inflation and interest rates in the US that will likely weaken the euro.

Europe also faces the risk of US tariffs.

"It's only a matter of time before the EU is targeted," said Marchel Alexandrovich, an economist at Saltmarsh Economics in London.

"In the meantime, the fact that Canada is responding and putting up tariffs against US goods is a sign of things to come and demonstrates the risks to global trade."

Top News

Wall Street / Global Market / United States / Donald Trump

Comments

While most comments will be posted if they are on-topic and not abusive, moderation decisions are subjective. Published comments are readers’ own views and The Business Standard does not endorse any of the readers’ comments.

Top Stories

  • Infographics: TBS
    Inflated rents, ghost floors, Tk220cr advance: How Premier Bank funds lined Iqbal family’s pocket
  • On 21 July, a Bangladesh Air Force (BAF) F-7 BGI training fighter jet crashed into Milestone School and College in Uttara, killing at least 31. Photo: Mehedi Hasan
    Milestone tragedy: Death toll rises to 32 as another child dies
  • File photo of a new NBR office in Agargaon, Dhaka. Photo: UNB
    NBR chief directs customs officials to clear consignments within a day

MOST VIEWED

  • Representational image/Reuters
    Dollar gets upward push as BB buys $10m more in auction at even higher rate
  •  ABM Khairul Haque. File Photo: Collected
    Former chief justice Khairul Haque detained
  • File photo of Bangladesh Bank. Photo: TBS
    Governor Mansur orders withdrawal of BB dress code after directive draws criticism
  • Representational image. Photo: Collected
    Tariff talks: Bangladesh, US set for crucial virtual meeting on 29 July
  • Mehreen Ahmed speaking to media on 11 July 2025. Photo: Collected
    Court disposes of Dhaka girl's case against parents seeking 'protection from abuse'
  • Hasina and Taposh in an event in 2020. Photo: Collected
    Al Jazeera investigation: Hasina, in call with Taposh, talks using helicopter to shoot, crush protesters in July uprising

Related News

  • Trump pulls US out of UN cultural agency UNESCO for second time
  • Trump says he received $16 million payment after Paramount lawsuit settlement
  • Comedians support CBS 'Late Show' host Colbert, Jon Stewart rips Paramount
  • Trump accuses Obama of treason in escalating attacks over 2016 Russia probe
  • Trump strikes trade deal with Japan to cut tariffs

Features

Illustration: TBS

The future of medicine: How innovations will catalyse quantum leaps in healthcare

14h | The Big Picture
Photo: Collected

24 July: More than 1400 arrested, 3 missing coordinators found

1d | Panorama
Photo: Mehedi Hasan/TBS

Aggrieved nation left with questions as citizens rally to help at burn institute

2d | Panorama
Photo: Mehedi Hasan/TBS

Mourning turns into outrage as Milestone students seek truth and justice

2d | Panorama

More Videos from TBS

There are many more examples of trials of Chief Justices in the world.

There are many more examples of trials of Chief Justices in the world.

12h | TBS Today
Why is there a massive conflict between Thailand and Cambodia?

Why is there a massive conflict between Thailand and Cambodia?

12h | TBS News Updates
Former Chief Justice ABM Khairul Haque in prison

Former Chief Justice ABM Khairul Haque in prison

12h | TBS Today
The Nvidia Chip Deal Trades Away the United States’ AI Advantage

The Nvidia Chip Deal Trades Away the United States’ AI Advantage

12h | Videos
EMAIL US
contact@tbsnews.net
FOLLOW US
WHATSAPP
+880 1847416158
The Business Standard
  • About Us
  • Contact us
  • Sitemap
  • Advertisement
  • Privacy Policy
  • Comment Policy
Copyright © 2025
The Business Standard All rights reserved
Technical Partner: RSI Lab

Contact Us

The Business Standard

Main Office -4/A, Eskaton Garden, Dhaka- 1000

Phone: +8801847 416158 - 59

Send Opinion articles to - oped.tbs@gmail.com

For advertisement- sales@tbsnews.net