New Tariffs Shock Global Economy: A Trade War Looms

US President Donald Trump has introduced new import tariffs, sparking global dismay and the threat of countermeasures. While measured responses hint at avoiding a trade war, international leaders are preparing for negotiations to offset the economic impact. The EU and major economies signal potential retaliatory moves.

US President Donald Trump's announcement of new import tariffs has sent shockwaves through the global economy, with officials worldwide expressing dismay and caution against an outright trade war.

Trump's tariffs, ranging from 10% to 49% on various goods, aim to bolster US industry but have drawn criticism from international leaders. European Commission President Ursula von der Leyen described the move as a 'major blow' to the global economy, potentially increasing costs for essentials like groceries and medicines.

While the EU and other nations have yet to unveil comprehensive retaliatory measures, there is a strong emphasis on negotiations to avert further economic damage. Analysts warn that prolonged tariffs could stifle growth and inflation, prompting some countries to consider targeting US tech companies in response.

(With inputs from agencies.)