Analysts warn Trump's tariff plans could spark trade wars and market volatility

Donald Trump's recent tariff proposals have raised concerns among analysts about potential trade wars and increased market volatility. He plans to impose 25% tariffs on exports from Mexico and Canada and a 10% tariff on imports from China until certain issues are addressed. Analysts warn that these tariffs could lead to further tariffs on other countries, escalating tensions. The financial markets reacted cautiously, but there are fears that this could trigger a flight to safer assets and higher inflation. European markets are particularly anxious, anticipating sharp declines due to Trump's aggressive trade stance. Investors are reassessing their strategies amid uncertainty about the future of international trade relations.