According to Trump’s economists, what will tariffs do to prices?
US President Donald Trump has said that the US’ new tariffs on Chinese goods will raise prices of Chinese products by about 16%. He further said that the tariffs would encourage other countries to lower tariffs. This comes after the US announced that it will impose tariffs of up to 67% on $60 billion worth of Chinese products.
The markets in Asia and Europe fell
Asian stock markets fell on Thursday, following US President Donald Trump’s announcement of new tariffs on goods from around the world. Stock markets in Thailand, Japan, South Korea, Australia and India fell by up to 0.7%. In Japan, Mitsubishi UFJ financial shares fell as much as 7.2% as the potential impact of the 24% tariffs on export-dependent Japanese economy dashed expectations that the central bank will keep raising interest rates.
Experts think Musk is to blame for the decline in sales
Tesla shares fell as much as 5% on Monday after the electric carmaker’s second-quarter earnings disappointed investors. The company reported a net loss of over $1.1 billion in the January-March quarter compared to a net profit of over $4 billion in the same quarter last year. Tesla’s stock has lost over 35% of its value since the start of the year.