0:00
why are markets melting down over
0:02
Trump's decision to slap tariffs on
0:04
Canada and Mexico over the weekend the
0:06
US announced a 25% tariff on imports
0:09
from Canada and Mexico and a 10%
0:12
additional tariff on China the tariffs
0:15
which are due to start on the 3rd of
0:16
February will remain in place until a
0:18
National Emergency of fenal and illegal
0:21
immigrants entering the country are
0:23
addressed said Trump Deutsch Bank
0:25
analysts explained that the market has
0:27
refused to take the threat of tariff
0:29
seriously completely underpricing the
0:31
risks they also added that the weekend
0:33
news left a severe shock on markets
0:37
Additionally the analyst said if
0:39
implemented and prolonged Canada and
0:41
Mexico would likely go into an imminent
0:43
recession and potentially see a bigger
0:46
shock than brexit was for the UK despite
0:49
not being affected by the tariffs UK
0:50
markets have already begun to react
0:52
badly to the news with the Foy 100
0:54
falling 1.3% this morning and the Foy
0:57
250 dropping 1.8% asked if he would
1:00
Target Britain president Trump said that
1:03
the UK is out of line however he added
1:06
that he believes something can be worked
1:08
out Trump added however that prime
1:10
minister K starma have been very nice he
1:13
said that both of them have had a couple
1:15
of meetings and numerous phone calls the
1:17
US President also said he and starma
1:20
have been getting along very nicely
1:22
since markets closed on Friday Bitcoin
1:24
which has recently begun to closely
1:26
track the NASDAQ has fallen almost 10%
1:29
dropping back below below $100,000
1:31
meanwhile the powers dropped 0.9%
1:33
against the US dollar dropping below
1:35
A123 in value the Mexican peso and
1:38
Canadian dollar have fallen even harder
1:40
with the latter dropping more than 2% to
1:43
its lowest level since 2003 in response
1:46
Canada has pledged to Institute a 25%
1:48
tariff on $155 billion of us Goods with
1:52
30 billion set start on February 4th
1:55
former bank of England Governor Mark
1:57
Carney who's seen as the favorite to
1:58
replace Canadian Prime Minister Justin
2:00
Trudeau Ved that Canada is going to
2:03
stand up to a bully president Trump
2:05
probably thinks Canada will cave in he
2:07
added Carney also said that Canada will
2:10
not back down adding that the nation is
2:12
United and will retaliate the three
2:15
countries of China Mexico and Canada
2:17
make up around 40% of imported us Goods
2:22
trillion which means the tariffs will
2:24
boost the average GT rate on us imports
2:27
from 2.3% to 10% however
2:30
Goldman Sachs analysts have said they
2:31
expect the US tariffs on the countries
2:34
to be shortlived the bank has calculated
2:36
that the 25% tariffs would lead to a
2:38
0.7% increase in US inflation with a
2:42
0.4% cut to growth do you think Trump's
2:45
tariffs are going to seriously damage
2:46
other economies let us know in the
2:48
comments and make sure to subscribe
2:50
cityam for more economic updates
