Us stock market falls: US President Donald Trump on Monday announced to put 25 percent new tarf under the trade deal over his business partner countries South Korea and Japan. These new rates will be applicable from August 1. Along with this, Trump has also expressed the possibility of a mini trade deal with India soon. He warned Japan and South Korea that if any country imposes counter -tariffs, then the US will be imposed tariff in proportion to the same rate.

US market declines

Here, the US market has seen a decline between Trump’s announcement of this new tariff and fears of trade war. Dow Jones went down 1.2 percent i.e. 525 points, while Nasdaq composite fell down one percent. Whereas, S&P 500 has also fallen 0.9 percent.

Stocks of Honda Motor and Toyota Motor have also fallen by 4 percent, while Google’s parent company Alphabet Inc. and Apple’s stocks also affected it and it is 1 percent. The stocks of NVIDIA and AMD have also seen a decline.

10 percent additional tariff on BRICS group

President Donald Trump also threatened to put 10 percent of additional tariffs over the countries of the BRICS group supporting anti -American policies. The threat by Trump was given at a time when the US tariff was criticized without being named Trump during a conference in Brazil.

Significantly, the group of BRICS countries includes Brazil, Russia, China, India and South Africa. Apart from this, when the expansion was done, Indonesia, Egypt, Iran, Ethiopia and UAE were also included in it. Also, Belarus, Vietnam and Cuba are also included.

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The trade tension of America and China has been increasing continuously since Trump’s tariff announcement. Its effect is very bad on the global market. The global market seems to be a stream. Dow Jones has declined by about 2000 points, while on the other hand Nasdaq has also come down 2.5%.

Here, the tension between the US and China has increased so much that the White House has even said to collect 107 per cent of additional tariffs on goods imported from China from 9 April. The US announced to take such a tough step at a time when China has refused to remove the 34 percent counter -duty on US goods.

The Asian stock market saw a huge decline on Monday after US President Donald Trump’s tariff was imposed. From Shanghai to Tokyo and Sydney to Hong Kong, the shares of the Asia-Pacific region declined on Monday as it was not seen in the last several decades.

Tariff increased tension

China’s Shanghai Composite Index recorded more than 8 %, Hong Kong’s Hong Seng recorded more than 13 percent and Japan’s Nikkei index recorded a decline of more than 7.8 percent. When the red color started deepening in the stock market, an analyst called it ‘bloodbath’.

European markets also led to a decline in early trade. This decline was the highest in defense and bank shares. This uproar in the stock market is no less than a shock for the manufacturing sector of Asia because America is a big market for them. Exports from clothes to cars made here are the highest in America.

Countries like Japan and South Korea are also involved in Trump’s tariff, on which 26 percent tariffs have been imposed. Vikasshiral like Trump Vietnam is also preparing to impose 46 percent tariffs on the country. Apart from this, Cambodia has been imposed on 49 percent, Thailand 36 percent on Thailand and 54 percent on China. Many other countries like Singapore, New Zealand and Australia have also started baseline tariffs.

The threat of recession is harassing

Speaking to BBC, Chief Economist Kian Wang, Chief of Asia-Pacific of Investment firm Wangard, said, “Asia is suffering the brunt of Tariff Hike of America. There is scope for conversation, but this new phase of high tariffs can remain. ”It is being told that Trump’s tariff policy is likely to bring a slowdown in America. Asian countries are very nervous due to this because this will cause great damage to their export in America.

Julia Lee, head of client coverage at London Stock Exchange Group’s subsidiary company FTSE Russell, said, “Tariff has further increased the expectations of inflation and recession.” Goldman Sachs has now estimated that in the next 12 months, there is 45 percent probability of recession in the US, which is more than the previous estimate of the country, as this Investment Bank has its own economic growth for its economic growth. Has reduced the forecast.

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