Trade Tensions Rise as Tariff Battles Shake Global Markets

Trade discussions between the United States and European Union made notable strides on Wednesday, as U.S. steel and aluminum tariffs disrupted the global market. President Trump's decision to double these tariffs added urgency to the talks.

In a Paris meeting, EU Trade Negotiator Maros Sefcovic and U.S. Trade Representative Jamieson Greer reported constructive dialogue. Greer noted the EU's readiness to collaborate on achieving balanced trade, while Sefcovic expressed optimism about the progress made.

The trade standoff has affected industries worldwide, with Trump's tariffs on foreign goods expected to reduce U.S. economic output. Meanwhile, China's limitation on rare earth exports has disrupted the supply chain for European automakers, exacerbating trade tensions.

(With inputs from agencies.)