Tariffs Unleashed: Global Markets Respond to Trump's New Levies

In a major trade move, President Donald Trump has announced fresh tariffs on imports from multiple countries, including nations without finalized trade agreements. The new rates include 35% for Canada and a steep 39% for Switzerland, raising eyebrows globally as investors assess potential market impacts.

Despite the tensions, many levies are lower than past threats, likely accounting for the muted market reaction. Key trade deals with Japan and the EU have been secured, though talks continue with China and Mexico. Most Asian shares dipped modestly, with South Korea being an exception, facing a significant drop over 3% amid domestic tax policy changes.

Looking ahead, the euro zone flash CPI and U.S. payroll data will be pivotal in influencing market directions and Federal Reserve actions. Investors are especially attentive to a rise in payroll numbers, which could reduce the likelihood of a rate cut. Meanwhile, the U.S. dollar strengthens, propelled by recent tariff decisions and a firm Fed stance against policy easing.

(With inputs from agencies.)