On the morning of March 4 (Vietnam time), the financial market was shaken when US President Donald Trump announced that a 25% tax on goods from Canada and Mexico would take effect in the next few hours.
Gold prices fell slightly as investors were cautious ahead of new US tariffs - Photo: AFP
CEOs and economists say Mr Trump’s tariffs on Canada and Mexico, which account for more than $900 billion in annual US imports, would pose a serious obstacle to the highly integrated economies of North America.
Stocks plunge
"They're going to have to pay tariffs. Frankly, they're going to build their cars, and everything else, in the United States, and they're not going to pay tariffs," Trump said at the White House.
Mr Trump said there was "no chance" that Mexico and Canada could reach a deal to curb fentanyl flows into the US to prevent Washington from imposing tariffs on the two countries.
Immediately after Mr. Trump's speech, the US stock market fell sharply in late afternoon trading yesterday. In addition, the Mexican peso and Canadian dollar also fell.
US stocks plunged as investors worried about President Trump's new tariffs on Canada and Mexico. The Dow fell 650 points, or 1.48%, to close at 43,191.
The Dow Jones Industrial Average fell nearly 900 points in afternoon trading before edging up slightly. The S&P 500 also fell 1.76% and the Nasdaq Composite dropped 2.64%.
The S&P 500 index recorded its biggest one-day drop of the year, while the Nasdaq index has fallen about 6.5% since Mr. Trump took office on January 20.
"The uncertainty surrounding tariffs, the stock market erasing the gains from the 'Trump boost' after the US presidential election, and the pressure from expected price increases, have given investors pause," said Gustavo Flores-Macias, professor of government and public policy at Cornell University.
According to Reuters, gold prices at around 10am (March 4, Vietnam time) decreased slightly as investors were cautious about new US tariffs.
Accordingly, the price of gold decreased by 0.3% to 2,885.40/ounce, while it had just increased by 1.2% on March 3 (US time) to reach nearly 2,892 USD/ounce.
Capital.com financial market analyst Kyle Rodda said the drop in gold prices is part of the current market turmoil, and prices could fall to around $2,700 before continuing their upward trend.
Oil prices hit 12-week low
World oil prices also moved in the same direction as stocks, falling about 2% to their lowest level in the past 12 weeks, as many reports showed that major producers would increase production in April. In addition, concerns about economic growth slowdown due to US tax policies also put pressure on demand and oil prices in the market.
At the close of trading, Brent crude futures fell $1.19 (1.6%) to $71.62/barrel. US WTI crude futures fell $1.39 (2%) to $68.37/barrel. These are the lowest closing prices for these two types of oil since December 6 and December 9, 2024.
Crude oil is under pressure from many sides and is vulnerable to negative news or unfavorable economic data, said Bob Yawger, head of energy futures at investment bank Mizuho.
The decision to increase production by the Organization of the Petroleum Exporting Countries (OPEC) and major non-OPEC producers (OPEC+), US economic data, negotiations on the situation in Ukraine and President Trump's tariffs are the main factors affecting the price of "black gold".
Canada says it will impose retaliatory tariffs
On March 3 (Canada time), Canadian Prime Minister Justin Trudeau said Ottawa will impose a 25% tariff on $155 billion worth of goods from Washington if the Trump administration sticks to its upcoming tariff move on Canadian goods.
Canada will impose a 25% tariff on $30 billion worth of US goods starting March 4, while tariffs on the remaining $125 billion worth of goods will take effect after 21 days.
Also on March 3, Mr. Trump signed an executive order increasing tariffs on imported goods from China from 10% to 20%.
Source: https://tuoitre.vn/chung-khoan-lao-doc-gia-vang-giam-nhe-sau-tuyen-bo-ap-thue-cua-ong-trump-voi-canada-va-mexico-20250304093236138.htm
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