Shares are cheap due to Trump Customs War – Hard bills in Helsinki

US The new import duties prescribed by the President for Canada, Mexico and China came into force on Tuesday. China and Canada immediately responded by setting high duties on US imports.

Fears of the consequences of the trade war for economic growth and individual companies pushed stock exchanges in Europe. The German Dax index was down by as much as 3.5 % in the evening. The Stoxx 600 index, which follows the European shares widely, was about two percent minus.

In the United States, the stock exchanges also opened up. In the evening, the central indices in Finland were almost two percent minus.

Also In Helsinki, the shares were fast on Tuesday. The general index on the stock exchange decreased by about two percent. In particular, the workshops and other export industry decreased. Metso’s share of the mining machines was about 5 % down.

For example, on the Helsinki Stock Exchange this year, the Ekkokauppa.com stock that had risen dramatically by Tuesday afternoon was almost 6 percent by Tuesday afternoon. Kamux’s share had also fallen more than four percent.

In Germany The shares of the automotive industry fell sharply. The price of the Volkswagen Group decreased by more than four percent and BMW over six percent. In Europe, it is feared that the duties for EU production will also be actually realized.

The decline in stock exchanges was created by the rise of some of the shares in the arms industry. On Monday, it was reported that the United States would completely stop weapon aid in Ukraine. It was considered good news for the European Armed Forces.

However, by, for example, the German Rheinmetallic share weakened by almost four percent by Tuesday, although the day started in a positive mood. The value of the company has more than doubled last fall.

On the market It was long expected that customs speeches would only be the starting point for the negotiations.

This time the president Donald Trump However, it was serious. The goods imported from Canada and Mexico are charged as much as 25 % at the US border.

In China, Trump placed ten percent duties earlier, and on Tuesday there were 10 % more. China immediately took retaliation. In addition to the newcomers, China complained about the world trade organization WTO.