Tariff Tensions: Unraveling the Global Trade Web

Donald Trump sparked a potential escalation in the global trade war by threatening new tariffs on EU goods. This move followed existing 25% U.S. duties on steel and aluminum, prompting Canada and the EU to announce retaliatory measures. Markets remain on edge as economic and political impacts unfold.

On Wednesday, Donald Trump intensified global trade tensions by threatening additional tariffs on European Union imports. This declaration followed the implementation of 25% U.S. tariffs on all steel and aluminum imports, causing trading partners to vow retaliation.

The EU and Canada announced countermeasures affecting a variety of U.S. goods, sparking concerns of economic disruption. The situation has led to uneasy relations with allies and fueled recession fears, particularly as Canada's central bank responded by cutting interest rates.

Both investor confidence and consumer sentiment have been shaken, with major global stakeholders closely monitoring the U.S.'s aggressive trade policy maneuvers, amidst predictions of a possible recession.

(With inputs from agencies.)