Markets Tumble as Tariffs Ignite Global Trade Concerns

Major stock indexes dropped due to new U.S. tariffs on Canada, Mexico, and China, sparking fears of a global trade war. Meanwhile, the euro hit a three-month high against the dollar as Germany announced a significant infrastructure fund. Gold prices rose amid increased safe-haven demand.

Major stock indexes fell sharply on Tuesday following the U.S. imposition of steep tariffs on imports from Canada, Mexico, and China, heightening fears of a global trade conflict. The euro, meanwhile, soared to a three-month high against the U.S. dollar after German political parties proposed a massive 500 billion euro infrastructure fund.

U.S. President Donald Trump's 25% tariffs on Mexican and Canadian imports, along with increased duties on Chinese goods, went into effect, prompting retaliatory measures from China and Canada. Mexican President Claudia Sheinbaum indicated plans to respond similarly, though details remain scarce.

The tariffs fueled concerns about economic impact, with a trade group warning of significant price hikes for consumers. Wall Street took a hit as the Nasdaq, Dow Jones, and S&P 500 recorded considerable losses. Meanwhile, gold prices surged, reflecting heightened demand for safe-haven assets amid uncertainties.