U.S. banking, the sector that falls the most after Trump’s tariffs are applied

New York, Mar 4 (EFE) - Large U.S. banks and financial companies are suffering Tuesday the effects of the entry into force of tariffs of 25% on imports from Mexico and Canada, 10% on imports from China, in addition to the 10% imposed in February on the Asian giant, with different responses depending on the countries.

The main Wall Street indicators have been in the red all day, but the declines are relatively moderate: -1.58% for the Dow Jones, -1.35% for the S&P 500 and -0.95% for the Nasdaq.

However, the effect is very different depending on the sectors: the financial sector is the worst hit, losing 3.44% overall at mid-session on Wall Street.

The large banks, such as JP Morgan (-4.42 %), Citigroup (-6.02 %), Wells Fargo (-5.53 %), and other financial companies such as Goldman Sachs (-5.02 %), American Express (-4.93 %) or Visa (-2.09 %) have fallen sharply.

The entry into force of the tariffs has resulted in widespread warnings about the inflationary effects that this may have on the US economy, precisely when President Donald Trump was elected with the promise to lower prices after several years of increases due to the effects of the post-pandemic.

Other sectors suffering today from the trade war are industrials, down 1.83%, and non-essential goods (-1.87%).

Of note is the fall of the aeronautics company Boeing (-6.47%), the company most affected by the Dow 30 at this hour, that of 3M (-4.25%), Walt Disney (-3%) or Walmart (-2.39%).

As for the automotive industry, which is highly interconnected in the three North American countries, Ford is down 3.66% and General Motors is down 2.65%.

Technology companies do not particularly fall today, and in fact Nvidia and Apple are up this day after yesterday's falls; however, the economic portal CNBC highlights that since Trump's inauguration as president of the United States, they have fallen by a combined 7 % in their shares, due to the high dependence of the sector on imports from China. EFE

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