Global Markets Brace for Turbulence Amid U.S. Trade War

Global markets face instability as U.S. President Trump's tariffs on Canada, Mexico, and China threaten economic growth and inflation. Retaliations from affected countries could harm corporate profits, pressure currencies, and destabilize markets. Analysts predict significant market movements and a potential hit to investor confidence.

Global markets are on high alert following the announcement of sweeping tariffs by U.S. President Donald Trump on major trading partners Canada, Mexico, and China. The move has spurred concerns over economic growth and inflation, with immediate retaliation promised by the affected nations.

The uncertainty surrounding this trade war has already impacted tech stocks, particularly after China's DeepSeek AI model was introduced last week. Economists warn that continued tensions could harm U.S. corporate profitability, alter interest rate expectations, and weaken currency values such as the Canadian dollar and the Chinese yuan.

Retaliatory measures have already been outlined, with Canada imposing 25% tariffs on $155 billion worth of U.S. goods in response. Further market volatility is anticipated when Asian markets open, as experts predict significant shifts in currency values and investor behavior.

(With inputs from agencies.)