Trump’s tariffs on China, Canada, and Mexico rattle global markets, sparking fears of trade wars and mixed international responses.

US tariffs cause market disturbances globally.

The recent implementation of tariffs by President Donald Trump on imports from China, Canada, and Mexico has led to significant concerns regarding the global economy.

Stock markets across Asia and Europe faced declines as the US dollar strengthened.

President Trump on tariffs: “With Mexico we had a great talk with Mexico…we haven’t’ agreed on tariffs yet. Maybe we will maybe we won’t. But we have a very good relationship. I also spoke with Prime Minister Trudeau of Canada. We had a good talk…Canada’s very tough.” pic.twitter.com/z4tUQGNZgn

— CSPAN (@cspan) February 3, 2025

Now the US and Mexico have agreed to delay tariff increases for one month following discussions between Trump and Mexican President Claudia Sheinbaum.

However, Canada remains uncertain about its tariff situation, as its Prime Minister, Justin Trudeau, has communicated with Trump but has not received positive feedback.

Economic experts predict inflation could rise in Mexico, while Canada’s economy might face a contraction due to the tariffs.

Trump continues to advocate for his “America First” policies, as the implications of these tariffs ripple through international markets.

In response, Canada is planning to contest the tariffs at the World Trade Organisation, while China is also preparing countermeasures.

Market reactions include steep falls in equities, with significant losses observed in Asian and European indices.

On the cryptocurrency front, Bitcoin and Ether experienced declines, reflecting investor wariness due to the escalating trade tensions.

Conversely, gold prices rose sharply amidst market volatility.

The situation continues to evolve, with nations responding to the shifts in trade policies while seeking ways to mitigate the economic fallout.