One of the exciting thing about US politics it might not be an interesting one for you, but the whole global economy is dependent on it. Recently the president Donald Trump threatened to levy a massive amount of new tariffs to Mexico because of which US future and Asian stock market sink. Donald Trump, who is famous as tariff man did it again because recently he declared that US government is going to levy additional taxes of 5% on all imports from Mexico. Now as a result of this announcement Asian stock market started to sink. Japan’s Nikkei and South Korea’s KOSPI has fallen by 1% during the trading day.
US stock market, on the other hand, did not perform well because Dow Jones, S&P 500 Futures and NASDAQ fell by more than 0.7% during the intraday trading. Mexico, which is a neighboring country of USA, is also one of the critical business partners. There are many big companies like Ford, Walmart, whose essential supplies come from this country.
Donald Trump has always been a high critic of Mexico since he wants to build a wall on the US-Mexico border to prevent illegal immigration. Mexico is famous for cheap labor and many big companies prefer to set up their factory their or hire these people at low wage cost. Now Walmart whose essential supply is dependent on this country has refused to give any comment on this new tariffs.
Trump has already started a trade war with China, which is costing a tremendous amount of money to the US-based companies. Now, this tariff on Mexico might increase big problems for these corporations whose essential supply is dependent on Mexico. Even though these new tariffs are made to stop illegal immigration, it’s still not a valid move according to many experts.
William has an experience of more than seven years writing for the web. In the recent couple of years, he’s been focusing on the business sector, watching market trends and the growth of economies. At News IMN, we use his services to keep our readers updated about the market that decides their lives.