Global Trade Turmoil: Trump's Tariff Tactics Shake Markets

U.S. President Donald Trump's tariffs spark a global trade war, severely affecting markets worldwide. The European Union plans retaliatory countermeasures, and China's economy faces pressure. With U.S. consumers likely facing higher prices, Trump remains unapologetic, using tariffs to leverage negotiations with international leaders.

The global trade landscape is undergoing significant upheaval as U.S. President Donald Trump's newly imposed tariffs, including a striking 104% duty on Chinese goods, come into effect. These measures have resulted in a global trade war, shaking longstanding trading systems and stoking fears of an economic recession.

Since the tariffs' announcement last week, the S&P 500 has recorded its most profound loss since the 1950s. U.S. Treasuries have not escaped the turmoil, as investors flee even perceived safe havens, with the dollar weakening against major currencies. Meanwhile, European markets are bracing themselves for further impacts.

In response, the European Union is preparing retaliatory measures, while China remains firm against what it perceives as economic coercion. The trade tension has placed significant downward pressure on the yuan, prompting state banks to stabilize currency markets. As U.S. consumers potentially face increased prices on various goods, the true extent of the tariffs' impact remains to be seen.

(With inputs from agencies.)