Global Markets Stumble Amid Trump's New Tariff Wave

President Donald Trump's recent decision to impose hefty tariffs on various countries has sparked turmoil in global markets. A wave of increased tariff rates has taken hold, affecting nations such as Canada, Brazil, India, and Taiwan. These hikes range from 20% to 50%, triggering widespread market reactions on Friday.

The new tariffs, which significantly hike the U.S. effective tariff rate from 2.3% to about 18%, have seen global shares tumble. The STOXX 600 suffered a 1.3% drop, and U.S. stock index futures echoed this decline with a 1% fall, setting a negative tone as trading resumes on Wall Street.

Amidst these economic tensions, several countries, including Switzerland and Taiwan, have signaled a willingness to negotiate in hopes of reaching more favorable terms. Meanwhile, analysts caution that the overall impact of Trump's trade policies is likely to be economically detrimental despite some potential short-term benefits.

(With inputs from agencies.)