Quotes
Repeated use of tariffs would incentivise other countries to reduce reliance on the US, weakening the dollar's global role,
she added
Investors are rattled at the prospects of a full-blown trade war breaking out,
said Susannah Streeter, head of money and markets at Hargreaves Lansdown, ... adding theyBeyond the rising cost of moving goods across borders, it will disrupt established supply-chains and depress North American business sentiment,
Bruce Kasman, chief economist for J.P.Morgan, said in a note
This weekend's actions challenge our underlying view that the Trump administration will strive to limit disruptive policies as it balances its desire to reduce engagement with the world with a commitment to support US businesses,
Kasman said
Breaking global trade may seem like the thing to do to resurrect the US industrial economy, a noble ambition, but, break trade and you disrupt global capital flows necessary to finance the US budget deficit,
an analyst at GlobalData.TS Lombard wrote in a noteThis wasn't a shock - it's been telegraphed for weeks - but investors will still feel the jolt as markets adjust to a move almost universally seen as damaging to global growth and financial stability,
said Stephen Innes at SPI Asset Management
We suspect the path of least resistance for now is for Asian currencies and risk assets to weaken, together with a greater risk premia to account for future meaningful tariff moves beyond what we have seen,
said Michael Wan at MUFGI don’t believe market participants have fully grasped the extent of the potential fallout yet, especially as responses from affected countries unfold,
said Tareck Horchani, head of prime brokerage dealing at Maybank Securities in Singapore
The rebound in household goods spending has also been driven by many promotional events such as earlier Black Friday sales and Cyber Monday, which was in December this year, meaning consumers are still bargain hunting,
she said
The surprise for markets … is that Canada and Mexico retaliated immediately and that others, i.e. China and the EU, may follow their lead, resulting in a sharp contraction in global trade,
Tony Sycamore, a market analyst at IG told Reuters
Trump’s trade war has started,
Alvin Tan, head of Asia currency strategy at RBC Capital Markets in Singapore told Reuters, noting it was hard to see the dollar retreating any time soonThe prospect of having a long and protracted trade spat between the world's two biggest economies is causing investors to take risk off the table today,
said Tim Waterer, chief market analyst at financial services firm KCM TradeDuring Trump’s first term in office, tariffs and trade tensions brought attention to the more general topic of the advantages but also disadvantages of globalisation,
said ING analysts led by Inga FechnerWe’ll see what happens,
the US president replied when asked by reporters what countries would be next to be targeted by tariffs
It’ll be tougher to secure exemptions this time than the last time,
Sinodinos said
The clearest implication is a stronger dollar,
said Eric Winograd, chief economist at AllianceBernstein
Trump’s sudden tariffs — such as what we saw with Canada and Mexico over the weekend — have much broader ramifications than just creating a trade war,
Sinha told this mastheadThere was some optimism in the market that [tariff threats] were just for negotiation, but the market may have underestimated the determination of the Trump administration,
said Jason Lui, head of Asia-Pacific equity and derivative strategy at BNP ParibasA strong dollar is a disaster for emerging markets,
said Trinh Nguyen, economist for emerging Asia at Natixis, who saidIf the tariff stays on for several months the exchange rate will reach new historic highs,
said Gabriela Siller, chief economist at Mexico’s Banco Base, referring to the number of pesos per dollar