Global Tensions as U.S. Prepares for Major Tariff Announcement

The dollar slipped as traders awaited U.S. President Trump's tariff announcement, potentially upending global trade. With a wide 20%-25% tariff under consideration, markets remain jittery. Concerns grow over a global trade war's impact on the U.S. economy, as recession fears loom.

The dollar experienced a slide on Wednesday as financial markets held their breath for President Donald Trump's tariff announcement, poised to disrupt established global trade norms. Traders worldwide are focusing on the imminent 20%-25% tariffs that could apply to major trading partners across the board.

Marked on calendars as 'Liberation Day,' April 2 is when new reciprocal U.S. tariffs take effect, targeting countries imposing duties on American goods. Currency markets responded nervously, awaiting further headlines ahead of the announcement at the White House.

The potential for a broad tariff raises risks, while recession concerns grow amidst recent weak U.S. economic data. Thoughtful discussions are in motion to exclude certain countries, like Britain, from these punitive tariffs, aiming to mitigate market anxiety.

(With inputs from agencies.)