Global Market Shifts: The Impact of U.S.-China Trade Dynamics

In Asia, markets are experiencing declines, influenced by China's struggle to pivot from an export-driven economy to one reliant on domestic consumption. The lack of consumer spending signals Beijing's hesitation to encourage such a shift.

Amid these dynamics, President Donald Trump's trade policies exert pressure on Chinese consumers while exacerbating U.S. import costs through elevated tariffs. This approach serves a dual purpose: managing trade deficits and funding a controversial tax cut package, poised to significantly increase the national debt.

European markets, however, find solace in political stability following recent elections. Nonetheless, global market volatility remains as investors react to the U.S.'s unpredictable policy shifts, raising concerns over economic impacts.

(With inputs from agencies.)