Trump Tariffs Shake Global Markets: Investors Steer Clear

Global stock markets faltered as the U.S. and China imposed new tariffs, adding uncertainty to trade relations. Trump's tariffs on China, Mexico, and Canada led to fluctuating U.S. stock indexes. Economic experts warn of potential trade disruptions and inflation risks, affecting investor confidence and market stability.

Global markets faced turbulence as U.S. President Donald Trump implemented new tariffs on China, followed by retaliatory measures from the Asian powerhouse. Investors responded cautiously, avoiding risky assets amid escalating trade tensions.

On Monday, Trump introduced a 25% tariff on goods from Mexico and Canada, stirring concerns. However, a last-minute agreement to delay further action for 30 days helped U.S. stock indexes partially recover from earlier steep losses. Economists from Commerzbank warned of high risks concerning future tariffs and trade disruptions.

Market analysts are watching the Federal Reserve's next moves, with no immediate interest-rate changes expected before June, according to the CME's FedWatch Tool. The unfolding earnings season keeps investors on edge, with major firms like Google-parent Alphabet and chipmaker AMD set to announce their results.

(With inputs from agencies.)