Global Trade Tensions: A Fragile Pause in U.S.-China Tariff Clash

On Friday, Beijing escalated tariffs on U.S. imports to 125% in response to President Trump's hike on Chinese goods, marking an increase to 145%. The trade war repercussions are severe, with global markets plummeting and heightened fears of recession, despite Trump's hopeful statements regarding a deal with China.

Beijing raised its tariffs on U.S. imports to 125% on Friday, a retaliatory move against President Trump's decision to increase duties on Chinese goods to 145%. This escalation has intensified the ongoing trade war, which is threatening global supply chains and causing significant market disruptions.

Global markets reacted sharply, with stocks tumbling and the dollar sliding, as Trump's tariff policies continued to unsettle investors. Gold prices surged to a record high, reflecting increased recession fears amid the fragile economic environment prompted by the U.S.-China trade conflict.

In response to the precarious economic climate, U.S. Treasury Secretary Scott Bessent aimed to reassure by stating that over 75 countries are interested in beginning trade negotiations. Meanwhile, the EU faces potential recession due to the U.S. tariffs, while leaders globally contemplate strategies to mitigate the far-reaching impacts of this trade dispute.

(With inputs from agencies.)