Trump threatens Mexico with 5% tariffs on all goods over illegal immigration
U.S. President Donald Trump on Thursday vowed to impose 5% tariffs on all goods coming from Mexico, unless the southern neighbor stems the tide of illegal border crossings.
“On June 10th, the United States will impose a 5% Tariff on all goods coming into our Country from Mexico, until such time as illegal migrants coming through Mexico, and into our Country, STOP.” Trump tweeted. “The Tariff will gradually increase until the Illegal Immigration problem is remedied at which time the Tariffs will be removed.”
U.S. stock index futures sank on the news Friday, as did Asian and European shares. At 5:53 a.m. ET, futures on the blue-chip Dow declined 293.5 points, or 1.17% to 24,896.5.
Futures on the tech-heavy Nasdaq 100 were down 117.25 points, or 1.62% to 7,138 while those on the broader S&P 500 lost 36.62 points, or 1.28% to 2,754.88.
Japan’s Nikkei shed 1.6%, while China’s Shanghai Composite Index was steady. Stocks in France and Germany shed 1% and 1.3%, respectively. Meanwhile, Britain’s FTSE 100 index dipped 0.8%.
Mexican peso on track for worst decline in eight months
The Mexican peso plunged to a three-month low against the U.S. dollar on Friday after President Trump unexpectedly announced he will impose new tariffs on all goods coming from the southern neighbor. The currency dropped 3% against the dollar, putting it on track for its biggest daily decline since October 2018.
Meanwhile, the Japanese yen thrived off high risk apprehension, going up 0.35% at 109.24 per dollar. The currency, which is often considered a haven asset in times of geopolitical and economic uncertainties, also gained against the Australian dollar and the euro.
China announces plans to create a list of “unreliable” entities after Huawei ban
Chinese commerce ministry plans to set up an “unreliable entity” list that will target foreign companies that hurt the interests of local companies, state media announced on Friday.
Commerce Ministry spokesman Gao Feng said the list will include foreign enterprises, individuals, and organizations that do not abide by market rules.
It will also include those that “deviate from a contract’s spirit or impose blockades or stop supplies to Chinese enterprises for non-commercial purposes, and seriously damage the legitimate rights and interests of Chinese enterprises,” Feng said.
Such a move is likely to affect many foreign firms as trade relations between the Asian economic giant and the U.S. worsen after the Trump administration banned Huawei Technologies.
Uber’s first post-IPO report shows $1 billion loss
Uber on Thursday announced its first financial results since going public earlier this month. The ride-hailing company posted a loss of $1 billion, in line with analyst expectations. Revenue came in at $3.1 billion, up 20% year-over-year and ahead of $3.04 billion Refinitiv consensus.
Shares of the California-based firm have declined nearly 11% since making its market debut. The stock was up 1.96% to $40.58 in premarket trading session on Friday.
