This time, the trade war is really declared. And the American president, Donald Trump, does not plan to change policy. “To the many investors who arrive in the United States and invest colossal sums there: my policy will never change,” he wrote this Friday on Truth Social. This is the perfect time to become rich, richer than ever! »»
After the catastrophic day at Wall Street and in Asian markets, all European scholarships plunge, this Friday, in the wake of the Chinese response to American customs duties and the announcement of the Chinese response, increasing customs duties by 34 % on American products on April 10.
In Europe, at 5.30 p.m. in Germany, the DAX fell 4.95 %, the Milan Stock Exchange drooped by 6.53 %, London by 4.95 %, or their strongest falls since the start of the Cavid-19 pandemic in March 2020. In Paris, the CAC 40 index fell 4.26 %, signing its worst session since March 2022. Paris has erased all its earnings of the year, sliding by 1.43% since January 1.
The Swiss Stock Exchange plummeted 5.14% and Madrid 5.83%. “The nerves of investors are currently lively,” writes Andreas Lipkow, an independent analyst requested by AFP.
In stock market chaos, “the defensive sectors are doing the best”, with values like Danone (-0.90% at the end, at 72.32 euros) and Air Liquide (-0.63% to 173.20 euros), which suffer much less “the consequences of the problems of customs duties”, explains to AFP Guillaume Chaloin, Director of the management of Delubac AM.
Saint-Gobain finished in falling from 7.74% to 81.78 euros, ArcelorMittal from 8.45% to 22.75 euros, Schneider Electric from 6.65% to 189.50 euros, Airbus from 7.04% to 146.90 euros and Thales from 5.74% to 237.90 euros. The total oil giant abandoned 6.24% to 53.07 euros.
Beijing’s immediate reply
If the main partners of the United States have generally refrained from throwing oil on fire, this is not the case with Beijing. “China’s retaliatory measures announce the start of an escalation” of tensions between the first two commercial powers of the globe, explains Alexandre Baradez, responsible for market analysis in IG France.
The new customs duties announced by Donald Trump Wednesday evening are particularly punitive for China, which has been inflicted additional rights of 34 %. Already targeted by customs duties, taxes on its products will increase by 54 % in total. A situation that prompted Beijing to seize the World International Trade Organization (WTO).
For its part, Beijing, in addition to 34 % taxes on American products, has just supported a new button that could really penalize the United States: the Chinese trade ministry has announced export controls on seven rare earth elements, including Gadolinium, used in particular in magnetic resonance imaging, and yttrium, used in general public electronics.
“To judge by the reactions of the global markets, uncertainty is greater than ever,” underline the analysts of Tokai Tokyo Securities. JP Morgan in the United States estimated that the risks of recession had increased from 40 to 60 %.
However, Donald Trump seems to have a deaf ear. “The economy had a lot of problems. He was a sick patient. She will finish in great shape, ”he said in front of the press, on board Air Force One. The American presidency, however, left the door open to negotiations and warned against any inclination for reprisals, threatening additional sanctions.