Trade Tensions Trigger Market Turbulence

Global financial markets are reacting to U.S. President Donald Trump's announcement of impending tariffs on steel and aluminum imports, potentially reigniting trade wars. Analysts claim such moves might bolster inflation, complicate Federal Reserve policies, and influence global currencies and commodities, with significant economic implications worldwide.

Global financial markets reacted to new tariff threats from U.S. President Donald Trump, with Asian shares slipping and the dollar rising. This follows Trump's announcement of 25% tariffs on steel and aluminum imports, a move that could heighten inflation and impact potential Federal Reserve rate cuts.

Responses from global leaders were swift, with German Chancellor Olaf Scholz stating that the EU was ready to retaliate immediately if the U.S. implemented tariffs on European goods. Meanwhile, China's retaliatory tariffs against U.S. exports have taken effect, with trade negotiations between Beijing and Washington remaining at an impasse.

The currency and commodity markets are feeling the pressure, as targeted countries' currencies fall against the dollar. Meanwhile, U.S. Treasury yields have risen, and gold prices hit record highs amid uncertainty over potential tariffs on precious metals.

(With inputs from agencies.)