Trade War Turmoil: Economic Fears Amid Trump's Tariff Tactics

The imposition of tariffs by the U.S. under President Trump has led to economic uncertainty, affecting industries from luxury cars to chemicals, and raising fears of a recession. Businesses express concern over fluctuating trade policies and their potential impact on global markets and consumer sentiment.

Makers of goods from sportswear to luxury cars and chemicals painted a gloomy picture on Wednesday of consumer and industrial health, adding to concerns about the damage from U.S. President Donald Trump's trade wars. Increased tariffs on U.S. steel and aluminum imports took effect Wednesday, as Trump intensifies efforts to prioritize U.S. trade.

Trump's shifting tariff strategies have disrupted industries and alarmed businesses and investors. Rising costs may spark inflation and dampen consumer confidence, risking a U.S. recession and causing stock markets to plunge. "Nearly everyone is grappling with Washington's unpredictable policies," said Stephen Dover of Franklin Templeton.

Tariff uncertainty is crippling sectors like healthcare and retail, impairing planning for automakers amid potential 25% tariffs on Canadian and Mexican components. Porsche may pass increased costs due to potential tariffs on to consumers, impacting future earnings. Korean steelmakers consider U.S. investments as metal tariffs take effect.

(With inputs from agencies.)