US stocks drop after Trump’s tariffs

AlArabiya English

Unsurprisingly, the US stock market is down by over 1 percent, Japan’s by 2.5 percent, and the EU market by nearly 1 percent after Trump’s tariffs hit, according to economist Laurie Laird.  #US #EU #Tariffs #Trump #WNews

Transcript

00:00Let's get into this further with economist Laurie Laird.

00:04Laurie, great to have you on.

00:06U.S. stocks dropped as Trump tariffs hit markets.

00:09Evening to you.

00:11What global reaction have we seen across the markets today

00:14to this uncertainty around tariffs?

00:19We saw a big sell-off in stocks.

00:22Japan was the biggest hit, which is sort of interesting

00:24because Japan seems to be out of the firing line,

00:27at least for the moment.

00:29We know that Donald Trump isn't too reluctant

00:31to put tariffs on allies.

00:33But Japanese markets down about 2%, 2.5%.

00:37Main Chinese markets are closed, of course,

00:39for the Lunar New Year.

00:41European markets down about 1%, a little bit more.

00:45And the U.S. markets opened down more than 1%,

00:48making up some of those gains at the moment.

00:51But to be honest, this isn't – it sounds like a dramatic reaction.

00:56And I've watched some of the headlines today,

00:58talking about this dramatic reaction.

01:00A 1%, 1.5% move in a large liquid equity market

01:05is not all that surprising.

01:08And I think that shows that we've expected these tariffs

01:10to calm Donald Trump.

01:12Look, he campaigned on him. He's a tariff man.

01:14So I don't think this hit the markets as much of a surprise.

01:18So, you know, slightly concerning.

01:21But these are all markets that have done pretty well,

01:23particularly in Europe and the U.S.,

01:25over the past couple of months.

01:27I don't see any concerns about financial stability at the moment.

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