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Investors cautious as Trump signals new tariffs
Global stock markets swayed on Tuesday, as investors tried to digest what US President Donald Trump will do on tariffs.
In his inaugural address Trump stopped short of announcing fresh import taxes on his first day in office, though he later said new tariffs on Mexico and Canada could come on 1 February.
Shares in the US and Europe opened slightly higher, while those in Asia saw modest gains.
Trump has promised an ambitious agenda – including trade reforms, lower taxes and cuts to government regulations – which has the potential to boost company profits.
But some economists have warned that the measures may also raise inflation, which in turn could force the Federal Reserve to increase interest rates.
The dollar, which had fallen on Monday after the inauguration, regained some ground against some other major currencies, including the pound and the euro.
Trump had previously threatened new tariffs on Canada, Mexico and China on day one of his presidency. While they did not materialise on Monday, they are still on the agenda.
“We’re thinking in terms of 25% on Mexico and Canada, because they’re allowing vast numbers of people, Canada’s a very bad abuser also, vast numbers of people to come in, and fentanyl to come in,” Trump said in the Oval Office.
In a presidential memo, he directed federal agencies to investigate why America continues to import more goods than it exports as well as probing potential unfair trade practices and alleged currency manipulation by other countries.
Trump also said new tariffs on China could depend on whether a deal is reached over TikTok’s future. If Beijing blocked such an agreement “it would be somewhat of a hostile act”, he said.
But he said the US is not yet ready to impose tariffs on all imports into the country.
During the election campaign, Trump pledged a universal tariff of 10% and said he would hit China with a 60% import tax.
He has said tariffs will make Americans richer, although critics say the costs are likely to be passed on to consumers.
The president has also said he would create an “External Revenue
International
Antisemitic crimes may be funded overseas, say Australian police
Australia’s federal police have said they are investigating whether “overseas actors or individuals” are paying criminals to carry out antisemitic crimes in the country.
There has been a spate of such incidents in recent months, the latest of which saw a childcare centre in Sydney set alight and sprayed with anti-Jewish graffiti. No-one was injured.
Prime Minister Anthony Albanese called a snap cabinet meeting in response, where officials agreed to set up a national database to track antisemitic incidents.
Thus far, the federal police taskforce, set up in December to investigate such incidents, received more than 166 reports of antisemitic crimes.
“We are looking into whether overseas actors or individuals have paid local criminals in Australia to carry out some of these crimes in our suburbs,” Australian Federal Police (AFP) Commissioner Reece Kershaw said, adding that it was possible that cryptocurrency was involved.
The digital currency can take longer to identify, Mr Kershaw said.
The commissioner said police were also investigating whether young people were carrying out these crimes and whether they had been radicalised online.
However, Mr Kershaw cautioned, “intelligence is not the same as evidence” and more charges were expected soon.
Last week, a man from Sydney became the first person to be charged by the federal taskforce, dubbed Special Operation Avalite, over alleged death threats he made towards a Jewish organisation.
Albanese said Tuesday’s incident at a childcare centre in the eastern Sydney suburb of Maroubra was “as cowardly as it is disgusting” and described it as a “hate crime”.
“This was an attack targeted at the Jewish community. And it is a crime that concerns us all because it is also an attack on the nation and society we have built together,” he wrote on social media.
International
South Korea president denies ordering arrest of lawmakers
South Korea’s suspended president Yoon Suk Yeol has made his first appearance at his impeachment trial, where he denied ordering the arrest of lawmakers during his attempt to impose martial law.
Parliament voted to impeach Yoon last month, and last week the Constitutional Court began a trial to decide whether to permanently remove him from office.
Yoon is also facing a separate criminal investigation into whether he led an insurrection. He has been detained since last week.
Security was tight on Tuesday as Yoon was transported by van from the detention centre, where he is being held, to the Constitutional Court.
International
Bob Dylan’s draft lyrics for Mr Tambourine Man sell for $500k
Bob Dylan’s draft lyrics for his 1965 song Mr Tambourine Man have sold at auction for $508,000 (£417,471) in the US.
The lyrics on two yellow sheets of paper are three typewritten drafts of the song – but not the final version. The work in progress also features the folk-rock legend’s notes by hand in the margin.
The song is one of Dylan’s most famous hits and the draft pages were among 60 items belonging to the singer that went under the hammer in the city of Nashville.
A 1968 oil painting created and signed by Dylan, and a 1983 Fender Telecaster electric guitar owned and played by him, were also on sale.
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