So it begins.
Trump said late Monday that he would slap 25% tariffs on Mexico and Canada until they better control their borders, and extra tariffs on China.
Asian investors still sipping their morning coffees were suddenly racing to hit the sell button, sending the Mexican peso down more than 2% on the dollar at one point and Japan’s Nikkei almost 2% lower.
Automakers were standout losers with Toyota falling close to 3%.Â
Most markets regained some composure by midday in Asia but pan-European STOXX 50 futures are still pointing down by about 1%, with traders wary that Europe will soon be in Trump’s cross-hairs.
The episode conjures uncomfortable memories for markets that have got used to reacting to scheduled events such as Fed policy announcements and monthly payrolls reports during Joe Biden’s tenure as president.
TRUMP SOCIAL
Now, investors must brace for market-moving Trump posts at any hour, like during his first term in office.
One analyst quipped that it was time to consider downloading Trump’s Truth Social app since X, formerly known as Twitter, is no longer the incoming President’s platform of choice.
But going by Trump’s first term, social media posts and reality haven’t always matched up. There’s still some way to go before Trump takes the oath again in January, meaning sentiment towards Mexico, Canada and other tariff targets could change.
Ultimately, Trump has said many times, he’s all about making deals.
There’s little on the calendar in Europe to distract from Trump’s post, barring some central bank speakers from around the region.
