The United States is preparing to impose a new round of tariffs on dozens of countries, with the announcement expected as early as this week.
Trade envoy Jamieson Greer signaled the imminent policy shift on Tuesday, confirming that the administration is moving to replace the temporary 10% global levy that is set to expire.
The move marks a significant escalation in trade policy, shifting from a broad-based baseline duty to a more targeted, potentially higher-tariff regime for specific trading partners.
Financial markets are reacting to the heightened uncertainty, with investors reassessing exposure to export-sensitive sectors and emerging markets.
The prospect of renewed trade barriers adds to existing geopolitical risks, potentially disrupting supply chains and increasing input costs for multinational corporations.
Equity indices faced pressure as traders priced in the likelihood of retaliatory measures from affected nations, particularly China and the European Union, which have been central to previous trade negotiations.