Protectionism (Trade)

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    Asian Markets Slide as Global Sell-Off Continues

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    Fears over the future health of the global economy are continuing to rattle markets around the world, as investors grapple with the reality of tariffs and fresh signs that consumers are pulling back on spending.After the S&P 500 suffered its worst day of the year on Monday, the sell-off continued into Asia trading on Tuesday.Asian markets opened mostly lower, with Japan’s Nikkei 225 index falling about 2 percent, weighed down by big declines in Japanese technology stocks. Stock markets in South Korea and Taiwan also fell around 2 percent in early trading.Equity markets in China were faring slightly better. Shares in Shanghai and Shenzhen ticked lower, down around 0.2 percent in morning trading. Hong Kong was down less than 1 percent.Investors have become increasingly cautious about the U.S. stock market in recent weeks as President Trump has flip-flopped on tariffs, causing confusion and uncertainty.Growing unease about the inflationary effects of the tariffs, coupled with a broadly darkening mood about the economy, provided the catalyst for a sell-off in a market that investors have long worried was overvalued.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Call to Scrap ‘Horrible’ Chip Program Spreads Panic

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      The president’s attack on the key tenet of the Biden administration’s industrial policy has set off concerns that he may claw back its funding.As President Trump addressed Congress last week, he veered off script to attack a sensitive topic, the CHIPS Act, a bipartisan law aimed at making the United States less reliant on Asia for semiconductors.Republican lawmakers had sought and received reassurances over the past few months that the Trump administration would support the program Congress created. But halfway through Mr. Trump’s remarks, he called the law a “horrible, horrible thing.”“You should get rid of the CHIP Act,” he told Speaker Mike Johnson as some lawmakers applauded.The CHIPS program was one of the few things to unite much of Washington in recent years, as lawmakers on both sides of the aisle worked with private companies to draft a bill that would funnel $50 billion to rebuild the U.S. semiconductor industry, which makes the foundational technology used to power cars, computers and coffee makers. After President Joseph R. Biden, Jr. signed it into law in 2022, companies found sites in Arizona, New York and Ohio to construct new factories. The Commerce Department vetted those plans and began to dole out billions of dollars in grants.Now, Mr. Trump is threatening to upend years of work. Chip company executives, worried that funding could be clawed back, are calling lawyers to ask what wiggle room the administration has to terminate signed contracts, said eight people familiar with the requests.After the speech, Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack because the criticism was “in tension” with the administration’s previous support.Senator Todd Young, the Indiana Republican who championed CHIPS, said he reached out to the White House to seek clarity about Mr. Trump’s attack, which he said was “in tension” with the administration’s previous support.Eric Lee/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Mark Carney será el primer ministro de Canadá

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      Mark Carney, exgobernador del banco central canadiense, encabeza ahora el Partido Liberal y pronto dirigirá CanadáMark Carney, exgobernador del banco central canadiense, consiguió el liderazgo del Partido Liberal de Canadá el domingo y se convertirá en primer ministro en un momento crítico para el país, que se enfrenta a amenazas a su economía y soberanía por parte del presidente de Estados Unidos, Donald Trump.Carney, quien nunca había sido elegido para un cargo público, fue gobernador del Banco de Canadá durante la crisis financiera mundial de 2008 y gobernador del Banco de Inglaterra durante el Brexit. También fue un banquero de éxito en el sector privado, amasando una importante fortuna personal.Dominó la carrera por el liderazgo de los liberales, asegurándose una victoria decisiva. Pero como el partido no tiene mayoría en el Parlamento, Carney pronto tendrá que convocar elecciones generales, en las que los liberales se enfrentarán al Partido Conservador, dirigido por Pierre Poilievre.La elección de Carney marca el final del mandato de una década de Justin Trudeau como primer ministro. La popularidad de Trudeau se había deteriorado, ya que muchos lo culpaban del oneroso costo de la vida en Canadá, del aumento de los precios de la vivienda, de la sobrecarga del sistema de salud y de otros problemas.Esto es lo que hay que saber:Las amenazas de Trump se ciernen sobre élCarney ve “días oscuros”Trudeau se despide emocionadoLas elecciones se han transformadoWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump’s Tariffs by Whim Keep Allies and Markets Off Balance

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      On Tuesday, Commerce Secretary Howard Lutnick went on Fox Business to reassure nervous allies and even more twitchy investors that the Trump administration was negotiating a deal to avoid tariffs on goods from Mexico and Canada, and that the president is “gonna work something out with them.”“It’s not gonna be a pause” for Mr. Trump’s on-again, off-again tariffs, he insisted. “None of that pause stuff.”On Thursday, the world got what the president characterized as more of that pause stuff.Mr. Trump’s announcement that he had a good conversation with Mexico’s president, and would delay most tariffs until April 2, was only the latest example of the punish-by-whim nature of the second Trump presidency. A few hours after the Mexico announcement, Canada got a break too, even as Mr. Trump on social media accused its departing prime minister, Justin Trudeau, of using “the Tariff problem” to “run again for Prime Minister.”“So much fun to watch!” he wrote.Indeed, it appears that Mr. Trump is having enormous fun turning tariffs on and off like tap water. But others are developing a case of Trump-induced whiplash, not least investors, who sent stock prices down again on Thursday amid the uncertainty over what Mr. Trump’s inconstancy means for the global economy. (A later rise in stock futures pointed to rosier expectations for Friday.)When the White House finally released the text of Mr. Trump’s orders on Thursday evening, it appeared that some of the tariffs — those covered in the U.S.-Mexico-Canada trade agreement that Mr. Trump negotiated and celebrated in his first term — were indeed permanently suspended. Other tariffs were merely paused.Most everyone involved was confused, which may well have been the point.As Mr. Trump hands down tariff determinations and then pulls them back for a month or so, world leaders call to plead their case, a bit like vassal states appealing to a larger power. Chief executives put in calls as well, making it clear that Mr. Trump is the one you need to deal with if you are bringing in car parts from Canada or chips from China.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Trump Shifts From Lifting Up America’s Neighbors to Hurting Them

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      When the United States signed a free-trade agreement with Canada and Mexico more than 30 years ago, the premise was that partnering with two other thriving economies would also benefit America.This week, President Trump abruptly scrapped that idea. He imposed a sweeping 25 percent tariff on the roughly $1 trillion of imports that Mexico and Canada send into the United States each year as part of that North American trade pact. Those tariffs are expected to significantly raise costs for Canadian and Mexican exports, undermining their economies and likely tipping them into recession.Mr. Trump’s decision to unwind decades of economic integration raises big questions about the future of North America and the industries that have been built around the idea of an economically integrated continent. While some factories in Canada and Mexico might move to the United States to avoid tariffs, the levies will also raise costs for American consumers and manufacturers that have come to depend on materials from their North American neighbors.“This is a day where the United States stopped seeing trade as force for mutual benefit, and began seeing it as a tool of economic warfare,” said Edward Alden, a senior fellow at the Council on Foreign Relations. He added that the levies were “a fundamental attack on the economic well being of our closest neighbors.”Mr. Trump suggested on Wednesday that this arrangement could be long-lived, as he gave automakers who were abiding by the terms of the United States-Mexico-Canada Agreement, or U.S.M.C.A., only a one month reprieve to prepare for the tariffs. Trump officials said that the president expected to issue more tariffs on Canada and Mexico next month, when he announces what he is calling “reciprocal” tariff measures.Howard Lutnick at Mr. Trump’s address to a joint session of Congress.Eric Lee/The New York TimesWe are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Macy’s Signals a Rocky Year Ahead as Trade War Looms

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      The largest department store chain in the U.S., like other retailers recently, warned that consumers may be more cautious with their money in the months ahead.Macy’s, the largest department store in the United States, saw slightly improved sales across all of its stores during the holiday season, but like other retailers it warned of a potentially rocky year ahead. Macy’s said comparable sales at stores that it owns were down 1.1 percent in its fiscal fourth quarter, which ended Feb. 1. Across all of Macy’s nameplates, which include Bloomingdale’s and Bluemercury, as well as its licensed business and online marketplace, sales rose 0.2 percent, the best result in many quarters.Macy’s entered the holiday season facing tough challenges, including more cost-conscious consumers, weakening profitability and a bizarre accounting error. It is in the midst of a turnaround plan that includes closing underperforming locations and improving its remaining stores with more staffing and better merchandise. It has closed about 66 of 150 planned stores so far. While Macy’s sees signs of optimism, the forecast it offered Wall Street showed that it expects to bring in less revenue than it did last fiscal year, in part because of the store closures. The retailer said it expects net sales to be $21 to $21.4 billion, down from the $22.3 billion this past year. It expects comparable sales to fall as much as 2 percent.David Swartz, a senior equity analyst at Morningstar, cautioned that investors and analysts like himself “need to see more” in order to be convinced that the department store’s strategy to reverse its fortunes is really working.“When you own hundreds of stores, some of them are going to be really good and some of them in the middle and some of them are terrible,” he said, adding that “the fact that the better stores are performing fairly well does not really tell you that much about the health of the whole company, unfortunately.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Who’s Got Trump’s Ear on Tariffs? Lutnick or Navarro?

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      Corporate leaders and investors continue to be caught off guard by the president’s trade policy, especially as deal talks heat up. Looking for tariff relief? Howard Lutnick, the commerce secretary, appears to be one to call.Tierney L. Cross for The New York TimesWho’s in the room President Trump’s tariff policy has given corporate chiefs and investors a serious case of whiplash. While the markets cheered on Wednesday’s delay on auto sector levies, setting off an impressive late-day rally, the move also adds to the confusion about what comes next.The latest: There’s increasing buzz that agricultural products are next in line for tariff relief, as the president faces intense lobbying from his party. And the release on Wednesday of the Fed’s beige book survey of regional activity showed that companies were growing worried that the levies would push up prices.One school of thought on Trump’s tariff plans: they could level the field before negotiations. Trump himself sees them as a tool to bolster the U.S. economy.A way to think about this is to look at the people in his orbit. On tariffs, there are two key, and seemingly polar opposite, figures.There’s Howard Lutnick, the former head of Cantor Fitzgerald who is a moderate on trade and now commerce secretary. And there is Peter Navarro, a longtime Trump lieutenant and a proponent of high tariffs who is generally opposed to trade deals.Who has more influence? For now, it seems to be Lutnick. Trump’s announcement of a one-month pause on tariffs on cars coming through Canada and Mexico wouldn’t have surprised anyone who heard Lutnick’s comments earlier in the day.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Gaming Out Trump’s Next Tariff Moves

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      In his address to Congress, the president made clear that his new trade levies were here to stay, acknowledging it might create “a little disturbance.” Analysts forecast what that might look like.President Trump’s tariffs have jolted global markets and the business world, but he has given no indication he’ll retreat on the levies.Doug Mills/The New York Times“A little disturbance” For months, the debate gripping board rooms, Wall Street and world capitals was whether to take President Trump at his word on tariffs. For a while, the markets rallied as if he were just bluffing.He wasn’t. In an address before Congress last night, Trump said that tariffs would protect American jobs and enrich the nation. He also acknowledged that “there will be a little disturbance. But we’re OK with that.”What might a “a little disturbance” look like? DealBook has taken on the task of gaming out what could happen next. (A warning to free-trade advocates: this could be tough reading.)More tariffs are coming, trade experts say. Few countries, or companies, will be spared. For example, if the tariffs on Canada, Mexico and China stick, then Europe will be next. Such a scenario is “unavoidable,” George Saravelos, the global head of FX Research at Deutsche Bank, said in a research note on Tuesday. European companies are already bracing for the next wave.“Trump has appeared to be less amenable to carve-outs in this second term,” David Seif, chief economist for developed markets at Nomura, told DealBook. That could bode poorly, he added, for Britain, whose prime minister, Keir Starmer, met with Trump at the White House last week where a trade deal was discussed. “I don’t think Keir Starmer should just feel safe right now,” Seif said.Expect more market turmoil. “These tariffs would represent a major negative global growth shock, sufficient to push many economies into recession,” Saravelos wrote, adding that it’s time to stop thinking of them as a negotiating tactic. (The recessionary risk for the United States may be remote, but concerns are growing about the tariffs’ potential stagflationary effects.)We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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      Europe Warily Watches U.S.-China Trade War

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      Europe was not directly targeted in the wave of U.S. tariffs that took effect on Tuesday, but the effects are being felt here.Keyu Jin, a professor at the London School of Economics, said that tit-for-tat tariffs would not necessarily lead to less global trade, but a “fragmentation and regionalism” that forges new blocs aiming to be “nonaligned” in the intensifying trade war between the United States, its neighbors and China.She was speaking on a panel Tuesday in Barcelona at one of the world’s biggest tech trade shows, which runs this week. The annual event, known as Mobile World Congress, attracts more than 100,000 people for product pitches, fund-raising appeals and debates about the future of technology.The fresh U.S. tariffs on Canada, China and Mexico — the three largest U.S. trading partners and crucial cogs in many supply chains — were a common topic of conversation around the sprawling expo center. European companies are heavily represented at the event, and some executives tried to frame the rising trade tensions as an opportunity for Europe, whose sizable population and economy has often been held back by slow growth and a lack of competitiveness.The recent mobilization of European leaders to step up military support of Ukraine was cited as an example of deeper European integration that in the past has tended to fizzle out. But the suspension of U.S. aid and the urgency of Ukraine’s plight — Prime Minister Keir Starmer of Britain recently described it as “a crossroads in history” — could spur greater continental cooperation, executives said.Investors have piled into stocks of European defense companies that stand to benefit from stepped-up military spending. And European markets, in general, have outperformed U.S. stocks in recent weeks, even after slipping on Tuesday after the U.S. tariffs went into effect and some targeted countries retaliated.Some of the tech execs in Barcelona say this is not a coincidence: Companies with Europe-focused operations and supply chains may be seen by global investors as a sort of geopolitical hedge against the tariffs and trade tensions arising from the United States. Take, for example, the stock market index tracking European telecoms, long seen as a somewhat sleepy backwater, which is up about 12 percent this year alone.But this thesis will be tested soon, when President Trump plans to widen the scope of tariffs to cover all U.S. imports of steel, aluminum, copper and cars, as well as “reciprocal” tariffs against countries to address what he calls “unfair” relationships and to compel companies to move manufacturing to the United States. More