Stocks and Bond Yields Slip as Trump Tariffs Ignite New Trade Conflicts
Stocks and bond yields slid on Tuesday as investors globally ducked for cover after the United States hit Canada, Mexico, and China with steep tariffs, launching new trade conflicts with the top three U.S. trading partners. European stocks fell 1.3%, losing ground from their record highs, while automakers lost 4.3% and government bond yields dropped. The Australian dollar fell to a one-month low, and investors were concerned about the fallout for the U.S. economy as well.
- This trade conflict highlights the increasing fragility of global supply chains and the need for more robust risk management strategies in the face of rising protectionism.
- How will the ongoing trade tensions between major economies impact the global economic recovery and the stability of international trade relationships?