The Stockholm stock exchange falls by approximately three percent after China's strong response to the tariffs from the USA. According to AFP, China is imposing an additional 34 percent tariff on goods from the USA.
Maria Landeborn says that a response from China was not entirely unexpected, but that many were not prepared for the extent.
They have previously imposed tariffs on certain goods from China's side. But what is being introduced now is broad tariffs on all American goods.
The escalation risks affecting the entire global economy negatively, according to Landeborn.
This is a clear escalation. Instead of trying to get the tariffs down, even more and higher tariffs are coming now. It's a significantly worse scenario.
She sees a risk that the situation will escalate further if more countries respond with tariffs against the USA.
I don't think Trump will back down because China is taking action. With this escalation, we will most likely see declines on the Stockholm stock exchange going forward.
The willingness to negotiate from the USA's side describes her as crucial for stabilizing the situation on the stock exchange.
But if negotiations drag on, the longer the time for recovery on the stock exchange, emphasizes Maria Landeborn.
The longer it takes, the more the risk increases that the damage has already been done, which is harder to repair. Trump seems to want to put maximum pressure on his negotiating partners, and it's hard to say how far he is willing to go.
So the shaky stock market may continue for a while.
