The stock market in the United States has decreased with fears that President Donald Trump’s tariff for Canada, Mexico and China will lead to a wider trade war.

The President continued to threaten a 25 % tariff on imports in the United States from Canada and Mexico, and a 20 % tax against goods that reach China.

This step attracted rapid revenge, including Canada, as Prime Minister Justin Trudeau warned his decision to target the American neighbor and the close commercial partner was “a very stupid thing.”

Trump has been threatened with more tariffs against the country.

Goods worth $ 2 billion cross the borders of the United States, Canada and Mexico every day, and their economies are deeply integrated.

The leading stock indicators in the United States were trading less on Tuesday, which represents a second day of declines, while markets in the United Kingdom, Germany and France are all closed.

Trump hopes to impose a customs tariff on the goods that the United States buys foreign companies on investing in America, enhancing tax revenues and developing the economy.

He has argued that the definitions – paid by the tax paid by the works that import the product – will increase our manufacture and protection as foreign companies turn into production In America.

But the customs tariff also tends to stimulate revenge on the target countries, which leads to the occurrence of local companies looking to export goods, which means that measures can hinder trade in the end.

Canada and China have already announced the import taxes on American goods after Trump’s tariff.

Meanwhile, Mexico President Claudia Shinbom said that the country will announce on Sunday’s response, which will include “tariff and non -fire measures.”

Trump said he would respond to a plan, due in April, due to “mutual” definitions.

This will be specially designed for each country and takes into account areas such as trade balance with the United States and other taxes, such as VAT.

In response to Trudeau’s criticism of the definitions and Canada’s interview, Trump wrote: “Please clarify the ruler Trudeau, from Canada, that when he puts a retaliatory tariff for the United States, our mutual tariffs will immediately increase with a similar amount!”

Trump also threatened to impose 25 % tariff fees on the European Union, recently claiming that the bloc “was formed to install to the United States.”

Europe has pledged to respond, but no tariff has been implemented yet.

After the United States confirmed on Monday that the definitions against its neighboring countries and China will go ahead, the country’s three main stock indicators have decreased.

Sharp Falls continued on Tuesday while in London, the FTSE 100 index fell for the largest companies listed in the United Kingdom, and today ends by 1.2 %.

Analysts have warned that customs tariffs can lead to economic periods in Mexico and Canada, Raising the prices of American families and can have an impact on consumers worldwide, including in the UK.

Chancellor Rachel Reeves said regardless of whether the UK avoids definitions, it will have a harmful effect.

She said, “I don’t think it serves anyone well,” she said. “This is the case at all, even if the definitions are not applied to the United Kingdom, we will be affected by the slowdown in global trade, slower [economic] The highest growth and inflation is the case. “

If inflation rises, this may affect the pace in which interest rates are reduced.

US Secretary of Commerce Howard Lootnick ignored the concerns about the potential pain of American families.

“There may be short -term price movements but in the long run it will be completely different. This will be the greatest America,” CNBC told CNBC.

Companies can choose to absorb the cost of additional tax. Scott Boaterett, CEO of Chipotle, told NBC that the restaurant chain will take this way – at the present time.

But it is expected that many companies will transfer the cost of consumers by raising prices.

A number of American retailers have already warned that prices would rise. Brian Cornell’s target president warned that consumers are likely to see increases during the next two days of foods such as avocado, bananas and strawberries.

Mexican avocado constitute approximately 90 % of the American market every year.

Meanwhile, Bestbuy CEO warned that prices could soon go.

“It is clear that the giant wild card is how consumers will interact with the increase in prices in light of many price increases throughout the year,” said Matt Belonas, Bestbuy Financial Manager.

Jim Farley, CEO of Ford, warned last month that the company “could deal with two weeks of customs tariffs.”

Bloomberg said: “We can see billions of billions of dollars from pressure on the industry, lost functions, and many effects on societies.”

Trump decided to impose definitions on Canada, Mexico and China in response to what he claims to be an unacceptable flow of illegal drugs and illegal immigrants in the United States.

But on the observations on Tuesday, Trudeau described these justifications as “completely false” and warned that reprisal measures in Canada would be affected.

He said that Canada will get $ 30 billion products, targeting $ 125 billion over 21 days.

He said that any new duties imposed by Canada will work “until the American trade procedure is withdrawn.”

“The Canadians are reasonable and we are polite, but we will not back down from a fight, not when our country and the welfare of each one in that is at stake,” he said.

He added: “Donald, you are a very smart young man. But this is a very stupid thing.”

China has also quickly announced its special anti-measures, which includes a 10-15 % tariff for some American agricultural commodities, including wheat, corn, beef and soybeans. China is the largest US buyer of these goods.

“If the United States continues … to launch a war of tariffs, trade war, or any other type of war, the Chinese team will fight them until the bitter end,” said Foreign Ministry spokesman Lin Jian.

After the latest commercial escalation, Dow Jones, S&P 500 and NASDAQ decreased by 1.4 %.

In Germany, DAX was 3.5 % lower while CAC has finished 2 %.

The tension between the United States and Ukraine over the war with Russia weighs stock markets. Overnight, the United States froze military aid to Ukraine.