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A truck that transports vehicles leads to the United States at the port of entry of Otay Mesa, on the border between the United States and Mexico on February 1, 2025 in San Diego, California.
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This report is from CNBC Daily Open today, our International Market Bulletin. CNBC Daily Open puts investors a day with everything they need to know, regardless of where they are. How do you see? You can subscribe here.
What you need to know today
Trump tariffs enter into force
President of the United States Donald Trump launched a rates save On Saturday. Imports from Mexico and Canada will face a 25%duty, while China’s will be subject to a 10%rate. Canada’s energy resources will face a lower 10%rate. Canada’s Prime Minister Justin Trudeau announced the same day 25% retaliation rates against $ 155 billion In American goods. Industry leaders in the United States have He expressed concern about those rates.
Effects of Trump Rates
The US futures. Uu. They fell on Monday morning As the merchants digested the implications of the rates. American crude oil prices rose almost 2% and Brent International’s reference point increased more than 1%. However, analysts think Oil prices could fall in the long term If tariffs trigger a global recession. Bitcoin fell around 3.9% to $ 94,174.61 from 2:20 pm, Singapore time, although a strategist thinks A rate would be “amazing” for cryptocurrency.
For shares, a January winner amid uncertainty
American markets retired on Fridayrenouncing previous earnings, in news of Trump’s imminent rates. He S&P 500 lost 0.50%, the Dow Jones industrial slid 0.75% and Nasdaq compound 0.28%fell, but all indices ended January in the green. Asia-Pacific markets suffered losses on Monday. From Japan Nikkei 225 and South Korea Kospi index More than 2% each fell. Taiwan semiconductor stock TSMC and Foxconn, who quotes how She has the precision industryIt collapsed after a sale of depth induced technology last week.
Factory growth slows down in China
China factory activity slowed down in JanuaryAccording to him Caixin/S&P Global Manufacturing Purchase Management Index. The seasonally adjusted reading reached 50.1 for January, lower than December 50.5, which was also the prognosis of a Reuters survey. The domestic demand improved, while the new export orders fell for the second consecutive month, according to the survey.
(Pro) Rates will not reach everything equally
General tariffs on Canada, Mexico and China mean that imported goods will not be saved from those countries with higher costs. However, these US companies, who have manufacturing chains worldwide or depend largely on imports, will be treated the heaviest blow.
The final result
The rates of the president of the United States, Donald Trump, are no longer a threat but a reality. They reached a wild January during which a new president entered the White House and a new Chinese artificial intelligence model overturned the industry.
Something more that was new in January: the highest closing level for the S&P 500.
But with tariffs now in place and a possible elaboration of the commercial war, markets can have difficulty climbing new heights in the short term.
Even the great technological gains and the employment numbers that will come out this week, usually reports that move in the market, can play the second violin for policy developments.
The markets are already reacting to the news. Oil and gold prices, which tend to move up in volatility times, have risen, while Bitcoin is operating lower, although it is not clear if those changes will be a unique clash or a sustained trend.
The activity of the China factory, which grew at a slower pace in January compared to December, will probably receive a blow as US companies try to get away from Chinese imports.
Trump’s current rates can be attacked, but it is difficult to see that any unharmed country or escape sector.
