Tue, 21 Jan 2025

Stock markets cautious as Trump signals new tariffs

The US president said he is considering imposing new tariffs on Canada and Mexico from 1 February.
- Stock markets in Asia-Pacific region made modest gains on Tuesday - Shares were flat to a little higher after Trump pledged "golden age" for America in inaugural address - Some economists warn that trade reforms, lower taxes and cuts to government regulations may raise inflation and force Federal Reserve to increase interest rates - Trump considers imposing new tariffs on Mexico and Canada (25% each), with China tariffs dependent on TikTok deal outcome - Hong Kong's Hang Seng rose by 1%, Japan's Nikkei 225 up 0.1%, South Korea's Kospi up 0.2%, Australia's ASX 200 gained around 0.6% - Dollar regained some ground against pound and euro - Analysts warn of market volatility due to Trump's return to White House, citing unpredictability in policy environment
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