On August 1, Donald Trump signed a decree imposing new tariffs on imports from 70 countries. These measures have already triggered sharp fluctuations in financial markets and diplomatic reactions.
Sharp Decline in Stock Markets
The signing of the tariff decree targeting 70 trade partners, with rates ranging from 10% to 41%, led to declines across major global stock markets. Following the announcement, the stock markets in the US, Europe, and Asia experienced sharp drops. For instance, by midday on August 1:
* Paris: -2.17%; * Frankfurt: -1.85%; * Milan: -1.86%; * London: -0.60%; * Seoul: -3.88%; * China and Japan: moderate declines.
Pharmaceutical companies and export-sensitive groups were among the hardest hit.
Diplomatic Repercussions
In the wake of the tariff announcement, affected countries swiftly expressed their discontent. China condemned the measures as *"protectionism that harms all parties"*. Canada reported an increase in tariffs to 35% from August 1, linked to its intention to recognize the State of Palestine. Brazil faced a tariff of 50%.
Other nations, such as Mexico, managed to negotiate a 90-day reprieve from tariff hikes.
Deglobalization Prospects
There are concerns that these new tariff measures may have long-term consequences for international trade. Some analysts have already noted a potential interest in assets linked to decentralized finance as a safe haven from geopolitical and monetary instability. The negotiation window until August 7 might partially mitigate the impact of these tariffs if dialogue is established among the affected nations.
The introduction of new tariffs by the US creates tension in both financial markets and diplomatic relations. This event raises questions about the future of international trade and possible pathways towards deglobalization in the coming months.
