Trump's Aggressive Tariff Tactics Spark Global Trade Tensions

In a bold escalation of his trade policy, President Donald Trump on Monday declared that significantly higher U.S. tariffs will be applied starting August 1. The move affects major trade partners like Japan and South Korea, along with several smaller exporting nations such as Serbia, Thailand, and Tunisia.

The letters sent to 14 countries hinted at potential negotiation opportunities but carried a stark warning: any retaliatory measures will be met in kind. Trump's announcement has come as a surprise, with increased tariffs for nations including Tunisia, Malaysia, and others, destabilizing financial markets and casting a cloud of uncertainty over international trade relations.

While U.S. stock markets experienced a downturn, key automotive companies' shares plummeted, illustrating the ripple effect of these sweeping tariff measures. This aggressive stance comes amid ongoing discussions, with only a few agreements achieved so far, keeping much of the world on edge.

(With inputs from agencies.)