Governments and markets react to Trump’s movements

Donald Trump’s decisions to suspend military aid to Ukraine and to impose tariffs on the US top partners have reverberated all over the globe, as Europe is trying to raise Kyiv, and China, Canada and Mexico to respond to new import fees.

Against the efforts to enter the gap left by Washington, the president of the European Commission, Ursula von der Leyen, proposed a package of loans for defense purchases of 150 billion euros to EU governments, which he said could provide “immediately” support.

The measure would pump money into the EU defense industry, rather than to provide direct Kyiv military aid, which Hungary has promised to block.

Governments and markets also react to this week’s other big decision to impose an additional 10 % fare to China imports and 25 % duties for Canada and Mexico.

Tuesday, Beijing announced countermeasures 10 to 15 % in US agricultural goods. Canada also revealed rates at $ 107 billion from US imports.

As Mexico has prepared the answer, Asian and European markets followed American stocks regarding the fears of the wider economic impact.