Global Trade Tension Escalates: How Trump's Tariffs Shake World Economy

President Donald Trump's sweeping tariffs against major trading partners spark fears of global economic downturn and raise the likelihood of a recession. While companies and countries prepare countermeasures, mixed messages from the U.S. create uncertainty. Financial markets suffer significant losses, signaling widespread concern about the trade war's implications.

President Donald Trump's aggressive tariff strategy has ignited a new chapter in global trade tensions, sparking fears of an economic downturn reminiscent of pre-World War II protectionism. The tariffs have triggered consternation among allies and adversaries, with warnings of severe repercussions reverberating worldwide.

The broad-based tariffs, which would mark the highest trade barriers in a century, have sent financial markets into a tailspin. Global stocks have plummeted, with the Dow, S&P 500, and Nasdaq suffering their steepest one-day losses in months. Analysts warn that the tariffs could disrupt supply chains, increase consumer costs, and jeopardize corporate profitability.

As countries brace for impact, world leaders are divided over how to respond. Some, like Canada and Mexico, hesitate to retaliate, while others, such as China and the European Union, vow to counterattack. The International Monetary Fund urges Washington and its partners to deescalate tensions and resolve disputes diplomatically.

(With inputs from agencies.)