Donald Trump started the tariff war only after winning the US presidential election and has now announced the Reciprocal Tariff on all the countries of the world. Its impact has also been shown as a decline on the Indian stock market from Asia to the Indian stock market, but the foreign brokerage house Nomura has issued a big warning for the US between Trump Tariff. The agency said, “Trump tariff is over … Now there is fear of recession.”
Stampede in markets as soon as tariff is announced
First, let us know what has been the effect of Trump’s tariff on the stock markets around the world. So as soon as Donald Trump announced to install reciperock tariffs on all countries, almost all the Asian markets from Japan to Hong Kong collapsed. Meanwhile, Japan Nikkei of Japan slipped 4.6 percent to an 8 -month low.
Apart from this, Gift Nifty broke more than 200 points in early trade. At the same time, South Korea’s KOSPI 3 percent, Hong Kong’s Hangsang 2% and Australia’s S&P/ASX 200 also slipped to 1.55%. Talking about the Indian Stock Market, where the Sensex slipped more than 550 points as soon as it opened, then the Nifty fell 150 points.
Nomura gave this warning
Foreign brokerage Nomura on Thursday warned the share investors that reciprocal tariffs applied overnight by the Trump administration seem to be much more than expected. These are risky for Asian equity. Brokerage said that he does not see it as the market ‘Clearing Event’, as some market participants were expecting. The report said that Asian markets will probably fall further.
The effect will be seen in the next few weeks!
The brokerage house said the impact of Trump Tariff will be felt on US inflation and growth outlook in the next few weeks and months. Investors will assess many standards regarding US Economy. According to Nomura, any kind of softening in the data will prove to be the market concerns related to US recession and US inflation.
Explaining the reason, Brokerage said that due to potential high cost, the recession in demand will affect the income of Asian exporters and it will see a decline.