Global Trade Tensions: Trump Targets Tariffs

Amid global economic tensions, U.S. President Trump pauses tariffs on Mexico while talks continue. Retaliation from Canada ensues, as experts warn of inflation and slowed growth. EU plans countermeasures, and market fluctuations reflect uncertainty. Trump aims at the EU next, with far-reaching impacts forecasted.

U.S. President Donald Trump has announced a one-month suspension of new tariffs on Mexico, following an agreement involving Mexico deploying 10,000 National Guard members at its northern border to curb drug flow, particularly fentanyl. This pause allows for further negotiations between the nations.

Global markets reacted negatively to the looming tariffs, which are set to impact trade with Canada and China, with stock markets falling and currencies fluctuating. Trump hinted at further tariffs against the European Union, sparking concerns of a prolonged trade conflict.

Despite potential exemptions for the UK, EU leaders, including French President Macron and German Chancellor Scholz, urged for diplomatic solutions over retaliatory measures. The EU stands ready to counter if needed, focusing on safeguarding its commercial interests.

(With inputs from agencies.)