European and US markets slip after Trump warns of 35pc tariff on Canada, investors await next moves
Trump dampened earlier optimism by firing off more than 20 letters to governments outlining new tariffs if agreements are not reached by August 1.
Bitcoin meanwhile pushed on with its climb, reaching an all-time high above US$118,000.
The dollar was higher against its main rivals, and oil prices gained.
Wall Street's three main indices fell, with both the S&P 500 and Nasdaq retreating from records.
But the pullback was relatively modest, implying that many investors are taking a wait-and-see approach to Trump's latest tariff broadsides.
'We have yet to see new substantial tariffs actually be enforced,' said Adam Sarhan of 50 Park Investments, describing investors as sceptical the biggest levies will actually be enacted.
A note from Oxford Economics characterized Trump's moves as 'more tariff theatrics,' while allowing that the levy on Canada produced 'jitters.'
In Europe, where investors were awaiting news of Trump's new tariff level targeting the European Union, the Paris stock market dropped 0.9 percent and Frankfurt 0.8 percent.
'The fallout hasn't been more pronounced because the market still continues to view all of this as a point of negotiating leverage,' said analyst Patrick O'Hare of Briefing.com.
Trump dialled up his trade war rhetoric Thursday, warning that Canada faced a 35-percent tax, while other countries would be handed blanket tariffs of up to 20 percent, from the current 10 percent.
That came after he outlined plans to impose 50-percent tariffs on copper imports, while threatening 200-percent levies on pharmaceuticals, and hit Brazil with a new 50-percent charge.
The moves are the latest by the White House in a campaign it says is aimed at ending decades of the United States being 'ripped off'.
Trump's initial bombshell tariffs announcement in April sent markets into turmoil until he paused them for three months, and the latest measures have had less impact.
London's FTSE 100 and the pound retreated after data showed the UK economy unexpectedly shrank in May — its second consecutive monthly decline.
That followed a mixed session in Asia, where Hong Kong rose, Tokyo fell and Shanghai flattened by the close.
Shares in BP jumped 3.4 percent in London after the energy giant said it expected to report higher oil and gas production for its second quarter.
Levi Strauss & Co. shot up 11.3 percent after reporting higher profits on a 6.4 percent rise in revenues. The denim company scored especially solid growth in the Americas and Europe. — AFP
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Sun
38 minutes ago
- The Sun
Gaza ceasefire talks stalled over Israel troop withdrawal plans
GAZA CITY: Indirect ceasefire negotiations between Hamas and Israel have hit a roadblock due to disagreements over Israel's proposed troop withdrawal plans, according to Palestinian sources familiar with the discussions. The talks, held in Qatar, aim to secure a temporary halt to the 21-month conflict that began after Hamas's October 2023 attack on Israel. Both sides have tentatively agreed that a 60-day ceasefire would see the release of 10 living hostages still held by Hamas. However, progress has stalled over Israel's refusal to fully withdraw its forces from Gaza. A Palestinian source revealed that Israel presented a map proposing military redeployment rather than complete withdrawal, maintaining forces in over 40% of the territory. 'Hamas's delegation will not accept the Israeli maps... as they essentially legitimise the reoccupation of approximately half of the Gaza Strip and turn Gaza into isolated zones with no crossings or freedom of movement,' the source said. Mediators have requested a pause in discussions until the arrival of US President Donald Trump's special envoy, Steve Witkoff, in Doha. Meanwhile, a second Palestinian source noted 'some progress' on prisoner releases and aid delivery but accused Israel of intentionally delaying the agreement.
Malay Mail
an hour ago
- Malay Mail
One critically injured, 200 arrested in California cannabis farm raid by ICE as Trump calls protestors ‘slimeballs'
CAMARILLO (California), July 12 — A farm worker was in critical condition on Friday, his family said, after being injured during a raid by US immigration agents on a legal cannabis farm in California that resulted in the arrests of 200 undocumented migrants and clashes with protesters. President Donald Trump, meanwhile, called demonstrators involved in attacks on Immigration and Customs Enforcement (ICE) agents 'slimeballs' and said they should be arrested. In another development, a district judge ordered a halt to 'roving patrols' in Los Angeles by federal agents who were detaining suspected undocumented migrants without probable cause and denying them due process. District Judge Maame Ewusi-Mensah Frimpong ordered an end to the arrests, which she said were being made 'based upon race alone,' on whether a person was speaking Spanish or English with an accent or because of their place of work and ordered them stopped. Trump's remarks and the court order come a day after a chaotic raid on a cannabis plantation in Ventura County some 56 miles (90 kilometers) from Los Angeles left one farm worker critically injured. The United Farm Workers labor union said in a post on X on Friday that the worker had 'died of injuries they sustained as a result of yesterday's immigration enforcement action.' Tricia McLaughlin, a Department of Homeland Security (DHS) spokeswoman, said the man who died was never in custody. 'Although he was not being pursued by law enforcement, this individual climbed up to the roof of a green house and fell 30 feet (10 meters),' McLaughlin said. '(Customs and Border Patrol) immediately called a medivac to the scene to get him care as quickly as possible.' The DHS said 200 undocumented migrants were arrested during raids on marijuana growing sites in Carpinteria and Camarillo on Thursday and 10 children were rescued 'from potential exploitation, forced labor, and human trafficking.' Glass House Brands, which owns the farms, said in a statement that it has 'never knowingly violated applicable hiring practices and does not and has never employed minors.' DHS said more than 500 'rioters' had attempted to disrupt the operation and four US citizens are facing charges for assaulting or resisting officers. Tear gas was used against the protestors, some of whom were seen in television footage throwing projectiles at law enforcement vehicles. The department said immigration agency vehicles were damaged and a $50,000 reward was being offered for the arrest of an individual who allegedly fired a gun at law enforcement officers. Showdown In a post on his Truth Social platform, Trump said he had watched footage of 'thugs' throwing rocks and bricks at ICE vehicles, causing 'tremendous damage.' Trump said he was authorising law enforcement officers who are 'on the receiving end of thrown rocks, bricks, or any other form of assault, to stop their car, and arrest these SLIMEBALLS, using whatever means is necessary to do so.' 'I am giving Total Authorisation for ICE to protect itself, just like they protect the Public,' he said. Trump, who campaigned on a pledge to deport millions of migrants, has been involved in a showdown over immigration enforcement with Democratic-ruled California for weeks. The Republican president sent thousands of National Guard troops to Los Angeles last month to quell protests against roundups of undocumented migrants by federal agents. California Governor Gavin Newsom has said the troops were not necessary to address the mostly peaceful protests, but his legal efforts to have them removed have failed so far. The cannabis farm in Camarillo was calm during a visit by an AFP reporter on Friday as workers waited in line to collect their belongings and paychecks. 'We've been here since six this morning asking questions but they're not giving us any information,' said Saul Munoz, a 43-year-old Colombian whose son was detained on Thursday. 'I just want to know how he's doing,' Munoz said. 'Bring him back to me and if it's time for us to leave, we'll leave. 'The truth is the American dream is no longer really the American dream.' — AFP
The Star
an hour ago
- The Star
Some Walmart garment orders from Bangladesh on hold due to US tariff threat
FILE PHOTO: A Walmart store is shown in Oceanside, California, U.S., May 15, 2025. Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him to wait a week before the order would be confirmed due to the tariff risk. - Reuters LONDON/NEW YORK: Suppliers to Walmart have delayed or put on hold some orders from garment manufacturers in Bangladesh, according to three factory owners and correspondence from a supplier seen by Reuters, as US President Donald Trump's threat of a 35 per cent tariff on the textile hub disrupts business. Bangladesh is the third-largest exporter of apparel to the United States, and it relies on the garment sector for 80 per cent of its export earnings and ten per cent of its GDP. The factory owners all said they expected orders to fall if the August 1 tariffs go into effect, as they are unable to absorb that 35 per cent rate. Iqbal Hossain, managing director of garment manufacturer Patriot Eco Apparel Ltd, told Reuters an order for nearly one million swim shorts for Walmart was put on hold on Thursday (July 10) due to the tariff threat. "As we discussed please hold all below Spring season orders we are discussing here due to heavy Tariff per cent imposed for USA imports," Faruk Saikat, assistant merchandising manager at Classic Fashion, wrote in an email to Hossain and others seen by Reuters. Classic Fashion is a supplier and buying agent that places orders for retailers. "As per our management instruction we are holding Bangladesh production for time being and IN case Tariff issues settled then we will continue as we planned here." The hold was not decided by Walmart, Saikat told Reuters, but by Classic Fashion itself. Walmart did not respond to a request for comment. Bangladesh is currently in talks with the United States in Washington to try to negotiate a lower tariff. Trump in recent days has revived threats of higher levies on numerous nations. "If the 35 per cent tariff remains for Bangladesh, that will be very tough to sustain, honestly speaking, and there will not be as many orders as we have now," said Mohiuddin Rubel, managing director at jeans manufacturer Denim Expert Ltd in Dhaka. Rubel, whose company produces jeans for H&M and other retailers, said he expects clients will ask him to absorb part of the tariff, but added this would not be possible financially. Manufacturers have already absorbed part of the blanket ten per cent tariff imposed by the US on April 2. "Only probably the big, big companies can a little bit sustain (tariffs) but not the small and medium companies," he said. Retailers have front-loaded orders since Trump returned to the White House, anticipating higher tariffs. Jeans maker Levi's, which imports from Bangladesh, said on Thursday it has 60 per cent of the inventory it needs for the rest of 2025. US clothing imports from Bangladesh totaled US$3.38 billion in the first five months of 2025, up 21 per cent from the year-earlier period, according to US International Trade Commission data. Another Dhaka-based garment factory owner said an importer with whom he was negotiating a spring 2026 order of trousers for Walmart asked him on Thursday to wait a week before the order would be confirmed due to the tariff risk. Hossain said he may look for more orders from European clients to make up for lost orders if the US 35 per cent tariff gets implemented, even if he has to cut prices to stimulate demand. - Reuters
