Global Trade Conflict Escalates with Tariff Retaliations

The U.S. has imposed a 25% tariff on steel and aluminum imports, aiming to boost domestic manufacturing, but this move has sparked a global trade conflict. In retaliation, Canada announced counter-tariffs impacting approximately C$30 billion worth of American goods, including steel, aluminum, and other consumer products, matching the U.S. tariffs 'dollar for dollar'. The European Union has also imposed its own retaliatory tariffs on American goods, escalating tensions further. Experts fear these tariffs could lead to significant economic repercussions including higher inflation and interest rates, and a potential recession if the trade war persists. The economic strain is causing concern among businesses and economists, as tariffs may increase the cost of goods for consumers, affecting sectors from manufacturing to general retail. Despite the current strain, there remains hope for negotiation, as some tariffs have been temporarily paused to facilitate diplomatic discussions.