Global Markets Decline Amid Trump Tariff Controversy

President Donald Trump's recent tariffs, including a 25 percent duty on foreign automotive exports and a 10 percent levy on various goods, have sparked significant global concern and criticism. As stock markets across Europe and Asia face declines, leaders like British Prime Minister Keir Starmer and Kremlin spokesperson Dmitry Peskov have condemned the tariffs as threats to economic stability. Trump's attacks on value-added taxes (VAT) have highlighted a complex issue, with experts arguing that VAT is trade-neutral and essential for public finances, making its abolition unlikely. Despite Trump's claims that VAT puts American businesses at a disadvantage, economists assert that the U.S. lacks a VAT, which affects competitiveness. The ongoing trade tensions are creating a climate of economic uncertainty, leading to fears of a recession and prompting discussions about diplomatic engagement to mitigate long-term repercussions. Investors are also reassessing their strategies, with U.S. Treasury bonds facing competition as global markets respond to the shifting economic landscape.