Global Stocks Plummet as Trade War Looms

Global stock markets face declines as President Trump imposes tariffs on Canada, Mexico, and China, sparking fears of a trade war. The U.S. dollar surged, impacting currencies worldwide. Economists predict these tariffs might reduce U.S. growth and trigger a recession in Canada and Mexico.

Asian stock markets dropped on Monday, with U.S. equity futures also nosediving as investors reacted to President Trump's tariffs on Canada, Mexico, and China. This move has heightened fears of a large-scale trade war potentially stifling global economic growth.

The U.S. dollar surged against major currencies, reaching record highs against the Chinese yuan, Canadian dollar, and Mexican peso. Japan's Nikkei fell sharply, and Australia's benchmark, a proxy for Chinese markets, likewise took a hit amid this turmoil.

These tariffs, outlined in executive orders, are set to be enforced shortly. Analysts warn of potential economic setbacks, with U.S. growth expected to decline by 1.5 percentage points, while Canada and Mexico could plunge into recession.

(With inputs from agencies.)