Trump Sparks Global Trade Tension with New Tariff Announcements

President Donald Trump's announcement on Monday of a sharp 25% tariff, set to begin August 1, on all U.S. importers from key allies like Japan and South Korea has sent waves through both financial markets and diplomatic channels. Wall Street reacted with a noticeable downturn, while markets in Asia managed to stay steady amid the brewing trade tension.

In response to these tariffs, 14 smaller exporting countries have initiated negotiation channels, indicating both opportunities for compromise and potential reciprocal tariff measures. Trump's communications, issued via his Truth Social platform, explicitly state that any attempt to increase tariffs could result in further tariff hikes from the U.S.

With the current deadline extended yet again, countries like Japan and South Korea are ramping up efforts to secure favorable terms before August 1. Economic analysts weigh in on the fluctuating stock market, highlighting the deep uncertainties shaping the global trade landscape under the present U.S. administration's policies.

(With inputs from agencies.)