Stock markets in the Asia-Pacific region made modest gains on Tuesday after President Donald Trump said he is thinking of imposing new tariffs on Mexico and Canada.
Shares were flat to a little higher after Trump pledged in his inaugural address to bring in a “golden age” for America.
He has promised an ambitious agenda – including trade reforms, lower taxes and cuts to government regulations – which has the potential to boost company profits.
But some economists have warned that the measures may also raise inflation, which in turn could force the Federal Reserve to increase interest rates.
“We’re thinking in terms of 25 percent on Mexico and Canada, because they’re allowing vast numbers of people — Canada’s a very bad abuser also — vast numbers of people to come in, and fentanyl to come in,” Trump said in the Oval Office.
Trump also said new tariffs on China could depend on whether a deal is reached over TikTok’s future. If Beijing…
