Trump Escalates Trade War, Markets on Edge

Donald Trump has threatened new tariffs on the EU in response to its planned countermeasures against his steel and aluminum duties.

During a meeting with Ireland’s Prime Minister, he criticized the bloc’s policies and warned of further action.

Canada also hit back, announcing $29.8 billion in tariffs, while its central bank cut interest rates, anticipating economic fallout. The U.S. is now considering restrictions on copper, while the EU’s response could hit $28 billion worth of American exports. Markets fear a deeper trade conflict.

Trump’s tariff policies have alarmed business leaders and lawmakers. Tech executives met with him to raise concerns, but he remained focused on boosting domestic investment. Treasury Secretary Scott Bessent’s remark that the economy needs a “detox” worsened recession fears, sending Wall Street into decline.

READ MORE:

Market Conditions Point to Rate Cuts, Says Tom Lee

ECB President Christine Lagarde warned that U.S. trade policies are fueling instability, citing tariffs as a threat to EU exports. Rising defense spending in Europe could push inflation higher, while the ECB, already grappling with uncertainty, recently cut rates to 2.5%. She stressed the need for transparency in guiding businesses and consumers through volatile conditions.

Alexander Stefanov