Trump's Trade Tactics Ignite Global Economic Unrest

The trade war initiated by U.S. President Donald Trump escalated as he threatened additional tariffs on China's imports, while the European Union planned counter-measures. Financial markets worldwide experienced significant losses amidst fears of recession. Investors are now concerned about the potential long-term economic impact of these tariffs.

A global trade war initiated by U.S. President Donald Trump deepened on Monday as he threatened to raise tariffs on China, prompting a strong response from the European Union. Financial markets globally tallied a third consecutive day of losses as traders feared the repercussions of these trade barriers.

Trump's advisors indicated the President's openness to negotiate with nations aiming to avoid impending tariffs. However, Trump dismissed dialogue with Beijing, threatening additional levies if China did not retract its recent tariffs on U.S. products. Meanwhile, the European Commission countered with its own tariffs on U.S. goods.

The escalating tension injected uncertainty into markets, raising alarm among investors about a potential global recession. Economic leaders, including those on Wall Street, cautioned of the long-lasting impacts these tariffs could have. Debate continues on whether this is a permanent strategy or a negotiation maneuver by Trump.

(With inputs from agencies.)