Global markets are on edge as U.S. President Donald Trump’s aggressive tariff policies sends shockwaves through the economy. European and US stocks plunged after a mixed trading session in Asia on Monday, reflecting growing investor anxiety. Trump remains defiant, promising that the U.S. will “become so rich” despite short-term instability. The Federal Reserve Bank of Atlanta has warned that the U.S. economy may contract in the first quarter, amplifying fears of a recession. Meanwhile, global leaders are pushing back—EU Trade Commissioner Maros Sefcovic criticizes the lack of U.S. engagement, Canadian Prime Minister Justin Trudeau calls the tariffs “unacceptable,” and Mexico braces for its auto sector to bear the brunt of the trade war.
With tariffs on aluminium and steel imports set to take effect on March 12, tensions between the U.S. and its key trading partners—Canada, Mexico, and the EU — continue to escalate. As Trump doubles down on protectionism, the world watches to see if his economic gamble will pay off or push the U.S. closer to a downturn.