Trump's Tariff Gamble: Global Trade Tensions Escalate

President Donald Trump has announced tariffs targeting Canadian, Mexican, and Chinese imports, aiming to address fentanyl addiction and illegal immigration. Canada, Mexico, and China are planning retaliatory measures. Experts warn tariffs could disrupt global trade and impact currency markets, with potential implications for equity markets and inflation.

In a significant policy shift, President Donald Trump has imposed tariffs on imports from Canada, Mexico, and China, declaring it a move to combat the national emergencies of fentanyl and illegal immigration. The new duties of 25% for Canadian and Mexican goods and 10% for Chinese imports will take effect from Tuesday.

The decision has sparked swift reactions from the affected countries. Both Canada and Mexico, America's largest trading partners, are preparing retaliatory tariffs. Meanwhile, China has announced plans to challenge the move at the World Trade Organization and pursue other countermeasures.

Market analysts are concerned about the broader implications of these tariffs. They predict possible negative impacts on global GDP growth, currency markets, and equities. With fears of escalated trade tensions and rising inflation, central banks may face increased pressure to adjust monetary policies, adding complexity to an already volatile economic landscape.

(With inputs from agencies.)