Former US President Donald #TRUMP ’s proposal to impose new tariffs has reignited fears of a global trade slowdown. The plan includes a 10% tariff on imports from major European economies, with a warning that rates could rise to 25% if political and trade demands are not met. Such measures signal a return to aggressive protectionist policies that previously disrupted global markets.
Financial markets typically react negatively to tariff uncertainty. Higher tariffs increase costs for businesses, squeeze profit margins, and often lead to higher consumer prices. Stock markets may face short-term pressure as investors shift toward safer assets like gold and government bonds. At the same time, currencies of affected countries can weaken, and global supply chains may experience renewed stress.
Overall, Trump’s tariff stance adds another layer of uncertainty to already fragile global markets, keeping investors cautious and risk-averse.
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