Global Trade Tensions Rise as Trump Imposes New Tariffs

In a big decision that has affected the world U.S. President Donald Trump has added new taxes (called tariffs) on products from Canada, Mexico and China. These taxes make it more expensive to buy things from those countries. Canada and Mexico will now pay 25% more to sell their goods in the U.S. and China will also face higher taxes on many of its products. This has made many people worry that a trade fight called a “trade war” might start.

After this news stock markets around the world went down. Stock markets are places where people buy and sell company shares and when they go down it usually means people are worried. Experts think these taxes could make products cost more hurt businesses in many countries and slow down the recovery of the world economy after COVID-19.

The U.S. government says these new tariffs will help fix unfair trade and bring jobs back to the U.S. But many people disagree. They think it might cause other countries to also add taxes on U.S. goods. China has already warned it might do that and Canada said these new rules are not smart and could cause problems.

Some experts say President Trump is going back to his old idea of putting America first. But this could hurt companies in the U.S. that buy parts and products from other countries especially car companies, electronics makers and farmers.

Leaders from Europe and Asia are asking everyone to stay calm and talk things out instead of fighting. Groups like the IMF and WTO which help with world trade and money are also asking countries to stop and work together peacefully.

Now everyone is watching to see what will happen next whether countries will talk and make deals or if the trade fight will get worse.