(BFM Stock Exchange) – The Parisian index opened up 6.8% on Monday, April 7, investors liquidating their positions on stocks in the face of climbing customs war. Donald Trump remains straight in his boots and believes that customs surcharge is a “medication”.

The week begins as she had finished for the Paris Stock Exchange: in free fall. The CAC 40 accuses this on Monday, April 7, a new fall on Monday, April 7, investors seeming to capitulate in the face of the risk of recession presented by the customs war caused by the Trump administration.

The flagship index of the Paris Stock Exchange collapsed from 6.8% to 6,781.39 points at the start of the session.

After announcing on Wednesday denier a salvo of customs from customs including a rate of 20% for the European Union and 34% for China, the United States has gone to the application. A 10% floor customs right on all imports of the United States entered into force on Saturday. The various increases imposed on 60 countries are scheduled for April 9.

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On Sunday, the American secretary in charge of commerce, Howard Lunick undermined the hopes of a potential report of these surcharges scheduled for April 9, dismissing the possibility of a period.

The American president, Donald Trump, told him that he “(wanted) no fall” of the financial markets, while judging that customs duties constituted “a treatment to heal”.

For its part, China announced on Friday that it would in turn impose customs from customs of 34% on American products, in retaliation.

A questioning of the world economic order

On BFM Business, the deputy director general of Montpensier-Arbevel, Wilfried Galand, spoke of an “extremely hard, extremely violent” reaction from China.

The expert spoke of a “climbing” risk that had not been anticipated by investors. Wilfried Galand also judges that the high probability of recession in the United States but also global also frightens investors.

Other countries have chosen the negotiation way, the White House economic advisor Kevin Hassett, referring to a figure greater than 50.

“The average rate of weighted American customs duties on international exchanges would drop from 2.3% to 23% on the basis of the last announcements or a level recalling the beginning of the 20th century,” said Edmond de Rothschild AM.

“The impact on growth and inflation is difficult to understand, especially since a negotiation period will open but also of retaliatory announcements. The first estimates estimates the impact at -1.5 percentage of GDP growth and +1.5 percentage point of inflation. The American presidential team risks undermining American exceptionalism”, continues the bank.

“At this stage, it is not a simple commercial dispute, but a systemic questioning of the world economic order,” said Stephen Innes of SPI AM.

“The rules that the United States has taken 75 years to build are being unraveled in real time. Customs duties constitute in fact a massive increase in taxes by diverted means and, unless they are accompanied by tax compensation (retroactive tax reductions, targeted aid to consumers), the spiral is only getting worse. Not politely that politics catches up with them, “he develops.