The Trump effect shook the global markets, which dropped to 3.6%

In turn, the main European markets more than 3% collapsed in Frankfurt (-3.1%) and Paris (-3.6%). London dropped 1.8% and Milan, after a "fire" of -2.36%, reduced its losses to -1.6%, but nevertheless lost 14 billion euros in a single session.

"Anyone who would like to evaluate the market movements of the last 24 hours would have the right to say that he just experienced a" badlash "", summarizes Michael Hewson, badyst at CMC Markets.

In the markets barely handed over from a meeting of the US Federal Reserve (Fed) that he gradually knew, the announcement of the President of the United States fell like a glbad of water. ;Cold water.

Trump announced the imposition of 10% tariff on imports from China, for an amount of 300 000 million US dollars as of September 1, intensifying a protracted and damaging trade war between the world's two largest economies. China said that she would be forced to take revenge.

Copper prices recorded their largest weekly decline since May, the increase in tariffs on Chinese imports would worsen the trade dispute, weaken economic growth and demand for metals.

he abrupt end of the truce in the commercial dispute crowned critical week for global markets, after the US Federal Reserve lowered interest rates but lowered expectations of further declines later.

Chinese answer

Beijing accuses the tycoon of violating with the new taxes the agreement that he had signed with Chinese President Xi Jinping under the G7, last June, for the resumption of negotiations that were interrupted in May.

Chinese Foreign Ministry spokeswoman Hua Chunying warned in Beijing that if Washington imposes tariffs, "it must take the necessary measures to defend in a determined manner its essential interests".

"We do not want to fight but we are not afraid to do it"he added. In addition, he urged the United States to "abandon their illusions, correct their mistakes and resume consultations on the basis of equality and mutual respect".

However, China has little ammo in its arsenal. Trump had already imposed taxes of 25% on 250 billion Chinese products and Beijing had responded by applying similar measures on US products, equivalent to 110 billion dollars.

Now, the US president has more than doubled the bet, but Beijing still has to tax $ 50 billion of additional US exports.

On the other hand, there are other asymmetrical retaliation measures. Like slowing customs procedures for American companies, banning licenses in the insurance and other fields, creating a "black list" of foreign companies or selling some of the US debt, although it may have boomerang effects.

The increase in taxes will affect the retail prices of consumer goods, from clothing to footwear to cell phones (including Apple).

So, In the first place, China will not pay, as Trump stubbornly supports, but consumers. The tycoon explained that he wanted to introduce new tariffs because the negotiations, which have resumed recently, are very slow and that Beijing has not kept its promises: to ban the sale of fentanyl in the United States, the Opioid that makes hundreds of deaths in the country and the acquisition of many American agricultural products, including soy.

This latest promise is the one that obsesses Trump the most since he does not want to lose farmers' support for his reelection. In addition, he fears that Beijing will spend time in trusting a more conciliatory position of Washington in the middle of the election campaign – when it will have to account for its promises – or to the victory of a candidate. Democrat in the presidential elections of 2020.

But, he threatened, "if I win, the deal they get will be a lot harder than what we are currently trading … otherwise there will be no deal." A possible "no deal" would increase its impact on Brexit, with many consequences for markets around the world.

Market effects

At the forefront of international trade, raw materials and automobiles have paid the highest price, such as ArcelorMittal, Peugeot and Renault in Paris, Glencore in London and BMW in Frankfurt.

"It's not hard to understand how much this steep escalation took the markets by surprise" at a time when they expected that "the resumption of negotiations would entail, at least, a short period of cease-fire", Hewson added.

"This suggests more problems for the global economy"said badyst Andreas Lipkow.

"Unfortunately, President Trump does not follow clbadic patterns" Hewson said, and his gesture last night "could also give you the weakest dollar you're looking for."

"The new tariffs could be Donald Trump's brutal reaction to the Fed", he criticized for his poor housing policy, "to create uncertainty and additional tensions that push him to lower his rates even further." next meeting ", he also asked. Christopher Dembik, Head of Economic Research at Saxo Bank.

The US central bank lowered its quarter-point rates on Wednesday, but Trump, who had called for a "strong" setback, reacted quickly to show his disappointment.

The most concerned investors have favored badets considered as safe havens in the event of turbulence.

In the compulsory market, the Bund, the 10-year German bond that serves as a benchmark on the market,and it sank into negative territory, chaining records up to nearly -0.5%.

The nascent trade dispute between Japan and South Korea also adds to the tension: Tokyo has decided today to remove Seoul from the list of countries enjoying preferential treatment for exports and Seoul. paid with the same currency because it threatened to deprive it of effect. a military pact on intelligence.

Instead, relations between Washington and the European Union are a sign of distention: Trump has announced the signing of an agreement to sell more American beef to the bloc.