$BTC Will Trump's victory spark a global trade war?

Donald Trump vowed on his campaign that he would tax all goods imported into the US if he won back the White House. Following his victory, businesses and economists around the world are scrambling to work out how serious he is.

In the past, Trump has targeted tariffs at individual countries such as China or certain industries, for example steel.

But his election campaign pledge to impose taxes of 10% to 20% on all foreign goods could affect prices all over the world.

Last month, he appeared to single out Europe.

The European Union sounds so nice, so lovely, right? All the nice European little countries that get together... They don’t take our cars. They don't take our farm products," he said.

"They sell millions and millions of cars in the United States. No, no, no, they are going to have to pay a big price."

BMW, Mercedes and Volkswagen shares all fell between 5% and 7% after Trump's victory confirmation. The US is the single biggest export market for German carmakers.

Will Trump's victory spark a global trade war?

Getty Images A young Asian businesswoman with shoulder length straight black hair and a light brown coat looking at a stock exchange market trading board in the street and checking it against her mobile phone screenGetty Images

Donald Trump vowed on his campaign that he would tax all goods imported into the US if he won back the White House. Following his victory, businesses and economists around the world are scrambling to work out how serious he is.

In the past, Trump has targeted tariffs at individual countries such as China or certain industries, for example steel.

But his election campaign pledge to impose taxes of 10% to 20% on all foreign goods could affect prices all over the world.

Last month, he appeared to single out Europe.

"The European Union sounds so nice, so lovely, right? All the nice European little countries that get together... They don’t take our cars. They don't take our farm products.