Tariff Tempest: Trump's Trade War Jolts Global Markets

US President Trump's tariff increases have incited a trade war, causing global markets to plummet. China plans retaliatory taxes on US imports. Meanwhile, Elon Musk advocates for zero tariffs with Europe. UK and France urge caution, while China condemns US measures as economic bullying.

US President Donald Trump's recent increase in tariffs has sparked an escalating trade war, leading to steep declines in global markets. The S&P 500 fell 6%, Dow Jones dipped 5.5%, and Nasdaq dropped 5.8% following the announcement of the tariffs.

China responded by announcing a 34% tax on all US imports, part of a series of countermeasures against Trump's tariffs. Elon Musk expressed hope for a future zero-tariff agreement with Europe, despite ongoing tensions. During a conversation with Matteo Salvini, Musk outlined his vision for closer US-European trade relations.

Leaders like UK's Keir Starmer and France's Emmanuel Macron have agreed that a trade war benefits no one, discussing the potential global impacts. Meanwhile, China has criticized the US tariffs as unilateral and protectionist, emphasizing economic globalization as essential for global development.

(With inputs from agencies.)