Trump's Tariff Turmoil: Global Markets Plunge Amid Trade War Escalation

President Donald Trump's announcement of a 10% baseline tariff on U.S. imports ignited global economic turmoil. Countries like China and the EU vowed countermeasures while stock markets dipped sharply. Despite criticism, Trump argued the tariffs would rejuvenate domestic manufacturing, although economists warn of potential economic downturns and increased living costs.

President Donald Trump has intensified the global trade war, imposing a baseline 10% tariff on most goods imported to the United States. The sweeping measures, announced from the White House Rose Garden, have sparked sharp declines in global markets, pushing investors toward safe assets like bonds and gold.

Amidst this economic turmoil, China and the European Union have vowed to implement their own countermeasures, with EU chief Ursula von der Leyen labeling the tariffs a significant blow to the global economy. She stated that the EU is prepared to respond with tariffs of their own if negotiations with Washington fail.

While Trump argues that these tariffs will bolster U.S. manufacturing, experts caution that the measures could trigger a recession and raise living costs. Meanwhile, allies such as Canada and Mexico face existing tariffs, and further retaliations loom. The Senate narrowly passed legislation seeking to terminate Canadian tariffs, though prospects in the House remain slim.

(With inputs from agencies.)