US stock markets fall (Image: Getty)
US shares have continued to fall as investors fear Donald Trump’s trade wars will cause huge damage to the American economy. The decline in the value of US-based businesses will hit millions of people with savings in pension funds in countries such as the UK as well as across America. This is because many funds from across the world are invested at least partly in the US.
The NASDAQ market, which has a particular focus on technology stocks, has fallen in value by 7% in one month, as trading continued today. Big losers include Tesla, the electric car firm led by ‘s ally , is down 28% in one month. The better-known Dow Jones, an index of 30 top companies, was down by 5% in one month.
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Concerns facing the US include the success of DeepSeek, a Chinese AI app, which hit the price of US tech firms involved with rival AI technology. However another factor is the trade war sparked b Mr Trump, who has announced tariffs on Mexico and Canada and is threatening tariffs on the EU. Mr Trump paused duties for automakers for one months but other tariffs remain in effect.
US stocks have been heading down since February 20. They rose earlier this week but have now started falling again. People saving into “defined contribution” pension schemes are likely to be affected, as many will find that the value of their own pension has fallen over the past month although both the Dow and the NASDAQ are still significantly higher than they were a year ago.
China has said it is ready for a trade war with the US and seemed to suggest it was also ready for a military war if need be. China will not yield to bullying and its economy can weather higher tariffs imposed by US President , the Chinese commerce minister said.
Wang Wentao added that there are “no winners in a trade war”. However he reiterated Beijing’s calls for talks with the US.
Coercion and threats are bound to fail, he said, noting that China’s role as a main trading partner of 140 nations means it has plenty of options.
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China is hoping to capitalise on Mr Trump’s presidency by convincing potential allies that it is more trustworthy than the US.
The Trump administration has raised tariffs on imports from China twice since taking office in January.
China has hit back with duties and other restrictions on American goods and companies. Mr Wang said China expects mutual respect in its dealings with other countries.
“Coercion and threats will not work on China, nor will they scare China. China’s determination to defend its own interests is unswerving,” Mr Wang said, adding that “there are no winners in a trade war”.
“If the American side goes further down this wrong path, we will continue to respond in kind,” he said. “We will fight to the end.”
Still, he stressed that China is open to resolving differences over trade.
“Our two sides can meet at an appropriate time and our teams can also have communication as early as possible,” he said.
Blaming China for the US fentanyl problem – Mr Trump’s stated reason for imposing 20% tariffs on all imports from China – will not solve the problem, he said.
China is the main trading partner of 140 countries and regions and has free trade agreements (FTAs) with more than 30 countries, Mr Wang said. “We are ready to sign more FTAs,” he added.