Trump's Tariff Turmoil: Trade Tensions Escalate

Donald Trump has intensified global trade tensions by threatening additional tariffs on EU goods. As a response, Canada and the EU plan counter-tariffs. The move has provoked economic uncertainty, affected business confidence, and triggered potential retaliatory actions from nations like China and Japan.

Donald Trump sparked global trade tensions on Wednesday by threatening to impose additional tariffs on European Union goods. Major trading partners, including Canada and the EU, are planning retaliatory tariffs as Trump's existing tariffs on steel and aluminum imports take effect.

The EU intends to target $28 billion worth of U.S. goods with counter-measures, while Canada's Finance Minister, Dominic LeBlanc, defended the move citing unfair targeting of iconic industries. Canada's central bank has lowered interest rates in anticipation of economic disruptions.

With investor confidence shaken and 70% of Americans fearing more expensive purchases, Trump's tariff strategy is raising recession fears. Countries like Brazil and Japan scrutinize the impact on their U.S. economic ties, even as stock markets remain steady. Canada's Prime Minister Justin Trudeau approaches diplomatic talks for a resolution.

(With inputs from agencies.)