Washington, D.C.: The escalating U.S. trade tensions have intensified after former President Donald Trump’s administration implemented a 25% tariff on all steel and aluminum imports, triggering swift global responses. The Indian Commerce Ministry has called for a virtual meeting with exporters ahead of the reciprocal tariff deadline to discuss countermeasures and mitigate the impact on international trade.
Trump’s Stern Warning on Retaliatory Tariffs
Hours after the tariffs went into effect, Trump issued a direct warning to the European Union, cautioning that further penalties would follow if the EU proceeds with its retaliatory measures. The EU has outlined plans to impose new duties on key American exports, including agricultural goods and machinery, in response to Washington’s latest trade policy shift.
“We can do things financially that will be very tough on them,” Trump warned, signaling economic repercussions for any country retaliating against U.S. trade policies.
Gold Prices Rise Amid Trade Uncertainty and Inflation Concerns
Market volatility has pushed gold prices higher, as investors seek safe-haven assets amid growing uncertainty surrounding U.S. tariff policies.
- Spot gold climbed 0.4% to $2,943.66 an ounce (as of 03:00 GMT).
- U.S. gold futures rose 0.2% to $2,951.90.
Analysts predict that gold could breach the $3,000 mark in the coming months, especially as market sentiment remains fragile. Marex analyst Edward Meir noted that while the latest Consumer Price Index (CPI) data was encouraging, the full impact of tariffs on inflation is yet to materialize.
“I think $3,000 is the next logical target, likely reached sometime over the next several months,” Meir said.
U.S. Negotiators Head to Russia Amid Ceasefire Talks
In a parallel diplomatic development, a U.S. delegation is currently en route to Russia for ceasefire discussions, with Trump expressing optimism about a potential resolution to the ongoing Russia-Ukraine conflict.
Speaking alongside Irish Prime Minister Micheál Martin, Trump emphasized that securing a ceasefire agreement with Moscow could be a major breakthrough toward stabilizing the region.
“If we secure a ceasefire from Russia, I believe that would get us 80% of the way to stopping this terrible bloodbath,” Trump stated, describing the conflict as a “horrific tragedy” that demands immediate action.
Trump’s Push to Reclaim ‘Stolen’ Wealth Through Tariffs
Trump’s aggressive tariff strategy is part of a broader “America First” economic policy, which aims to bring back industries and manufacturing jobs that the administration claims were lost due to previous trade agreements.
“The United States of America is going to reclaim much of what was taken by other countries and, to be honest, by incompetent U.S. leadership,” Trump asserted.
This protectionist stance has unnerved global markets, with investors fearing a prolonged trade war that could disrupt supply chains, inflate costs, and dampen economic growth.
Canada Hits Back with $20 Billion in Retaliatory Tariffs
In response to Washington’s 25% tariffs on steel and aluminum, Canada has announced reciprocal measures targeting a wide range of U.S. exports.
- 25% tariffs on U.S. steel and aluminum imports.
- Additional duties on American-made computers, sports equipment, and other goods.
- Total countermeasures valued at $20 billion.
Canada remains the largest foreign supplier of steel and aluminum to the U.S., making the retaliatory tariffs highly significant for both economies.
The global economic landscape remains uncertain, with businesses, investors, and policymakers closely monitoring the next steps in this rapidly evolving trade conflict.
