Global Trade Tensions: Trump's Tariffs Shake Financial Markets

U.S. President Donald Trump's tariffs spark a global trade war, prompting countermeasures from China and the EU. Markets worldwide react with volatility, fearing potential recession. Amid investor concern, Trump asserts these measures will rejuvenate the U.S. industrial base, but economic leaders warn of lasting consequences.

Global financial markets were roiled on Monday as tensions rose in the ongoing trade war instigated by U.S. President Donald Trump's widespread tariffs. The president further escalated the standoff with China and the European Union, threatening higher tariffs and prompting plans for retaliatory measures.

The dispute has sparked fears of a global recession, leading to three consecutive days of market losses. The S&P 500 dipped to its lowest level in over a year, as investors grappled with the impact of steep trade barriers on the world's largest consumer market.

Despite the growing economic fallout, Trump remains steadfast, believing these tariffs will revitalize America's industrial base. However, critics, including major financial leaders, highlight the potential for significant economic damage, with some likening it to an "economic nuclear winter."

(With inputs from agencies.)