US President Donald Trump has announced sweeping tariff hikes, sparking fears of a global trade war.

The European Union and China have vowed countermeasures but are also seeking dialogue.

Economists warn that these tariffs could harm the US economy, with inflation, reduced growth, and job losses on the horizon.

Comparisons are being drawn to the 1930s Smoot-Hawley Tariff Act, which worsened the Great Depression.

Experts suggest that Europe should avoid retaliatory tariffs and instead strengthen trade ties with other nations.

Meanwhile, financial markets reacted negatively, with US futures dropping and gold prices surging.

The global economic landscape faces significant uncertainty as nations brace for the fallout.