U.S. President Donald Trump this weekend announced hefty tariffs on his country’s three biggest trading partners, leaving investors scrambling to position themselves for a global trade war.<\/p>\n
Canada and Mexico face 25% duties on their exports to the U.S., with a lower 10% levy imposed on Chinese goods. Canada has already responded with retaliatory tariffs of 25% against $155 billion of U.S. goods.<\/p>\n
Trump has, meanwhile, stated that the European Union<\/a> will be next in the firing line, with the U.K. also under consideration.<\/p>\n Though Trump repeatedly threatened tariffs on the campaign trail, Deutsche Bank analyst Jim Reid said in a Monday note that the market had been “completely under-pricing the risks” and would now be in “severe shock.”<\/p>\n Among the expected short- to medium-term impacts are a slowdown in global economic growth<\/a>, particularly in countries with large manufacturing sectors, a spike in oil prices<\/a>, higher prices for U.S. consumers<\/a> and higher-for-longer U.S. interest rates<\/a>, with a stronger U.S. dollar as a result<\/a>.<\/p>\n<\/div>\n Outside of the U.S. and the three other economies directly involved, sectors around the world are braced for impact from the tariffs.<\/p>\n Here are some of the areas expected to be hit:<\/p>\n<\/div>\n Autos firms \u2014 from car brands to the makers of vehicle parts \u2014 are expected to be among the worst affected by escalating trade tensions as they represent a major area of international imports into the U.S.<\/p>\n Germany’s Volkswagen<\/a>![](\"https:\/\/image.cnbcfm.com\/api\/v1\/image\/108096037-1738502254562-gettyimages-2196563804-porzycki-usatarif250201_npa81.jpeg?v=1738502335&w=160&h=90\"\/)
<\/a><\/p>\nAutomotives<\/h2>\n