Asian markets saw uncertainty on Monday as the U.S. announced impending tariffs on steel and aluminium imports. This move, announced by President Trump aboard Air Force One, may limit the Federal Reserve’s capacity to cut rates due to inflationary pressures.
The announcement came after Germany’s Chancellor Olaf Scholz warned of the European Union’s readiness to respond swiftly, showcasing rising fears of a global trade war. Meanwhile, China’s retaliatory tariffs added to the tension, with potential impacts on U.S.-China trade negotiations.
Investors reacted with caution, boosting the dollar and affecting major currency and market indices. Trade-related stocks experienced volatility, reflecting concerns over potential cost increases and strategic shifts in supply chains.
(With inputs from agencies.)
