The ongoing trade war, fueled by sweeping tariffs imposed by U.S. President Donald Trump, continues to disrupt global markets.
As tensions escalate, the Japanese yen and Swiss franc have seen increased demand from investors seeking safe-haven assets, reflecting growing concerns about the potential for a global recession. The U.S. dollar has weakened against both the yen and the euro, as markets brace for a prolonged conflict between the world’s two largest economies.
Canada and Mexico, as top trading partners of the U.S., are particularly vulnerable to the impact of tariffs due to their heavy reliance on U.S. exports. On the other hand, while China and the EU have valuable exports, a smaller percentage of their goods are directed to the U.S., providing them with a slightly more diversified trade base.
China has made it clear that it will retaliate if President Trump escalates tariffs further, including the possibility of a 104% increase in duties. In response to Trump’s announcement of reciprocal tariffs, Beijing has imposed a 34% tariff on American goods. China’s Commerce Ministry has expressed "resolute opposition" to U.S. tariff threats and pledged to safeguard its interests through countermeasures.
Despite the ongoing trade tensions, European markets have shown significant resilience, recording gains after a four-day losing streak. On Tuesday, major stock markets surged, recovering from heavy losses, with U.S. Treasury yields rising for the second consecutive day. Wall Street’s main indexes also partially rebounded, driven by optimism that the U.S. may be open to negotiating its tariff policies. Technology and financial stocks led the recovery.
In Europe, the pan-European Stoxx 600 index climbed 1.1%, recovering some of the steep losses incurred over concerns of a potential global recession. Despite this positive movement, investor sentiment remains fragile as sector-specific tariffs, particularly on steel, aluminum, and automobiles, continue to affect industries, especially within the European Union. Ongoing talks with President Trump regarding a "zero-for-zero tariffs" deal have added an element of uncertainty to the situation.
As the trade war unfolds, the global financial system is on edge. Investors are closely monitoring developments in the U.S.-China dispute, hoping for signs of negotiation but bracing for further escalation. With both countries locked in a battle of tariffs and countermeasures, the global economy faces an uncertain future.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
The election of U.S. Cardinal Robert Prevost as Pope Leo XIV has drawn an emotional response from clergy and laity across the globe, celebrating his historic rise as the first American to lead the Catholic Church.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
India has fired a series of missiles into Pakistani-controlled territory, in what it has described as “Operation Sindoor”
Discover every major VE Day 80 event in Britain, 5‑8 May 2025—from London’s parade and fly‑past to street parties, concerts and museum exhibitions.
For the first time in history, an American has been chosen to lead the Catholic Church, as Cardinal Robert Prevost is named pope.
Chinese e-commerce platform Temu has announced it will no longer sell goods directly from China to U.S. customers, shifting instead to U.S.-based sellers amid the closure of a long-criticized customs loophole.
Cardinals from 70 nations have gathered in Vatican City to begin the historic conclave to elect the next pope, following the death of Pope Francis 17 days ago. This conclave is the most geographically diverse in Church history, showcasing Francis’ legacy of inclusivity.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
Britain's King Charles has called on the world to work toward lasting peace and preventing future wars during a speech marking the end of four days of events celebrating the 80th anniversary of Victory in Europe (VE) Day.
Before becoming Pope Leo XIV, Cardinal Robert Prevost shared rare insights on faith, unity, and modern challenges in a few candid interviews.
A humanitarian ship carrying 20,000 tons of Ukrainian wheat docked in Samsun, Türkiye, on Thursday, marking a major World Food Program initiative to supply crisis-hit regions, including Syria.
North Korea’s leader Kim Jong Un supervised a missile test on Thursday, emphasizing the nation's nuclear combat readiness, according to state media KCNA.
EU foreign ministers will visit Lviv, Ukraine, on May 9 to discuss defense support and endorse plans for a tribunal on war crimes and aggression.
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