Global markets faltered as fresh tariff threats from U.S. President Donald Trump reignited fears of a renewed trade clash between Washington and key European partners. The announcement targeted several EU nations and immediately sent shockwaves through equities, currencies, and commodities.
European stocks opened sharply lower, with export‑heavy sectors—particularly autos, luxury goods, and industrials—bearing the brunt of the selloff. Major multinational firms saw billions wiped from their market value within hours as investors braced for potential retaliatory measures from Brussels.
The proposed tariffs, set to begin at 10% and potentially rise to 25% later in the year, stem from escalating geopolitical disagreements that have strained U.S.–EU relations. European leaders responded swiftly, signaling that countermeasures were already under review.
Currency markets reflected the unease as traders shifted toward traditional safe‑haven assets. The euro dipped while the Swiss franc and Japanese yen strengthened, underscoring the broader flight to safety.
Analysts warn that if tensions continue to escalate, the economic fallout could extend well beyond Europe, potentially disrupting global supply chains and dampening growth prospects at a delicate moment for the world economy.
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