Risks of trade wars are shaken by Wall Street / Day

The main events of the past two months in the global financial markets are related to the return of Donald Trump to the President of the United States (USA).

Trump’s public rhetoric and action is characterized by rapidly changing statements that can tell something in the morning, but in the evening something else. This type of public communication, implemented by the US President of Economic Power, has brought in general uncertainty in the financial markets.

This spring, unpredictability is damaging not only to investment in stock markets, but also for cash flows in the real economy. Since no one knows how much the so -called trade tariff wars will be and how long they could be dragged on, the forecasting of further economic development is becoming increasingly difficult. In addition, uncertainty reduces the improvement base of business financial indicators and thus even more sensitive to the desire to buy companies’ shares.

It should be recalled that, for example, on Monday, March 24, D. Trump said he would apply 25% of the customs tariff for all imports from any country buying oil or gas from Venezuela. According to US authorities, 68% of Venezuela’s oil -exported oil is purchased by China, LETA reports.

On March 13, the US President threatened to set 200% of customs tariffs for wine and other alcoholic beverages coming from France and other Member States of the European Union.

Trump’s tariff policy has already been affected by countries near the United States, including Canada.