Nations react to tariffs as Donald Trump begins to rattle world markets

Donald Trump has made a surprising U-turn on tariffs – but it may not be all it seems – as global markets get rattled by impending trade wars.

The world economy is heating up as overseas markets begin to feel the weight of US President Donald Trump’s sweeping changes as commander-in-chief.

Stock markets across Asia and Europe experienced a stiff downturn on Monday, with the dollar surging following Mr Trump’s decision to impose heavy tariffs on China, Canada, and Mexico. The new tariffs include 25 per cent levies on imports from Canada and Mexico and 10 per cent duties on Chinese goods.

But in a surprise move, Mexico and the US and Canada and the US agreed to put off any tariff increases for one month following further talks.

“I am very pleased with this initial outcome, and the Tariffs announced on Saturday will be paused for a 30 day period to see whether or not a final Economic deal with Canada can be structured,” the President wrote on his Truth Social platform after a phone call with Prime Minister Justin Trudeau.

“FAIRNESS FOR ALL!”

Mr Trump has also issued a warning that the European Union would soon face similar measures.

In his first two weeks back in office, the 78-year-old has implemented some of the aggressive trade policies he promised during his campaign.

It has now revived fears of global trade wars among analysts who believe the boat can only be rocked so far.

Read on for the latest updates

Originally published as Nations react to tariffs as Donald Trump begins to rattle world markets