About six months ago, US President Donald Trump sent US stocks into a downturn when he announced extensive punitive tariffs on goods imported into the US.
Since then, the trade war has been simmering for a long time, but it stopped on Friday, says Philip Jagd, head of equities at Sampension, in a written comment to Ritzau.
- The statements from the US president first caused European stocks to plunge significantly and then sent US stocks into the biggest weekend drop since the beginning of April, when Trump kicked off the whole mess with his famous cardboard tariff sign, it says.
On Friday, Donald Trump announced that he would introduce tariffs on Chinese goods that are 100 percent higher than the already existing tariff rate. According to the president, the increased tariff rate will come into effect on November 1.
The decision comes after China announced that the country will tighten controls on the export of rare earths. In addition, China is expanding restrictions on the country's exports of technology products.
- Given that China has taken this unprecedented position, the United States will impose a 100 percent tariff on China from November 1, 2025, in addition to the tariff they currently pay, Trump writes.
The US president further writes that the US will introduce export controls on "all critical software", which will also come into effect on November 1. According to Philip Jagd, the development may well have an impact on the Danish stock market.
- The rekindled trade war will undoubtedly also shape investors' agendas in the coming week. And here we may well see that the arrow will point downwards when the Danish market opens its doors on Monday.
However, the stock manager urges caution. He reminds us that the hefty tariffs can be lifted just as quickly as they were introduced.
/ritzau/
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