Global Trade Tensions Escalate Amid U.S. Tariff Uncertainty

Global markets are uneasy as the U.S. considers imminent tariffs that could affect multiple countries. President Trump suggests aggressive measures, causing significant economic concerns. Market indices and treasury yields have dropped, while gold prices rise, reflecting investor caution. Upcoming economic data may further influence recession fears.

Asian stock markets took a hit on Monday, reacting to U.S. trade policy uncertainties that have left investors grappling with potential global tariff impacts. Wall Street futures saw declines, with S&P 500 futures down 0.6% and Nasdaq futures losing 1.1% in early trading.

President Trump announced that impending U.S. tariffs would target nearly all countries, and European markets responded to hints of further trade tensions. Although countries may seek exemptions, Trump's stance could see elevated U.S. inflation, impacting the Federal Reserve's rate-cutting capabilities.

The global economic landscape faces a precarious period as concerns about an accelerating recession mount. U.S. Treasury yields fell, revealing investor reliance on safer assets such as gold, which reached historic highs. Future economic indicators, including the March payrolls report, could exacerbate recession-related worries.

(With inputs from agencies.)