A look at the day ahead in U.S. and global markets from Mike Dolan
Any speculation that U.S. President-elect Donald Trump would adopt a ‘softly, softly’ approach to his trade and economic policies was jolted overnight as he warned of immediate tariff hikes on Canada, Mexico and China – hitting the currencies of all three.
Trump, who takes office on Jan. 20, said he would impose a 25% tariff on imports from Canada and Mexico on day one until these countries clamp down on drugs, particularly fentanyl, and undocumented migrants crossing the border. The move would appear to violate a free-trade deal with both countries that he negotiated during his first White House term.
Trump also separately outlined “an additional 10% tariff, above any additional tariffs” on imports from China.
It was not entirely clear what this would mean for China as he has previously pledged to end China’s most-favoured-nation trading status and slap tariffs on…
