PNN – Following the tariff policies of President Donald Trump, the American news network CNN announced: Wall Street is sick and tired of Trump’s trade chaos, and his latest trade threats have further eroded market confidence.
According to the report of Pakistan News Network, stocks on the US stock market quickly fell to their lowest levels after Trump announced on Tuesday that the government would increase tariffs on Canadian aluminum and steel to 50%.
Art Hogan, chief market strategist at Riley Wealth Management, told CNN: This market is clearly tired and sick of trade policy. It seems that the government is continuing its actions. With so much uncertainty, it is impossible to provide confidence to investors.
Wall Street’s fear gauge, the VIX Volatility Index, continued to rise on Tuesday after a 19% rise on Monday.
Hogan said: Investors are worried that this will turn into a productive, targeted recession. We don’t know what the end game is.
Former US Treasury Secretary Larry Summers also told CNN that there is a “real possibility” of an economic recession due to widespread uncertainty about government policies.
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US President Donald Trump said on Tuesday local time that tariffs on steel and aluminum imports from Canada will increase to 50% starting Wednesday (up from 25% today) and that Canada must immediately remove its tariffs on American goods.
Trump stated: In response to Canada’s imposition of a 25% tariff on electricity imported into the United States, I have directed the Secretary of Commerce to impose an additional 25% tariff on Canada and to increase the tariff on steel and aluminum imports from Canada to the United States to 50%.
The US President said he would soon declare a national emergency in the affected areas in response to the power issue, which would “allow the United States to take swift action to address this outrageous threat from Canada.”
Trump also added: Why would our country allow another country to provide electricity to even a small area? Who made these decisions and why? And can you imagine Canada stooping so low that they would use electricity and the lives of innocent people as a bargaining chip and a threat? They will pay so much for this that it will be written in the history books for years to come!
After months of warnings, the United States finally imposed a 25% tariff on all Canadian goods last week, sending markets plunging and pushing Canada-US relations to an all-time low.
The Canadian Prime Minister immediately responded with similar tariffs on $30 billion worth of American goods, with more likely to follow.
The Premier of the Canadian province of Ontario, in response to Trump’s tariffs on his country, ordered that electricity exported to the United States be sold at a 25% higher price.