The United States announced sweeping 10% tariffs on major trading partners — including China, the European Union, Mexico and Brazil — citing allegations of forced labour, a move that risks amplifying trade friction as global growth already faces geopolitical headwinds.
The announcement came amid renewed hostilities in the Middle East: US and Iranian forces exchanged strikes, putting a fragile ceasefire at risk and prompting the OECD to warn the global economy could slip into a slump if the conflict becomes prolonged.
Domestic data in the US showed a still‑tight labour market. April job openings rose to 7.6 million, beating expectations of 6.85 million and underscoring resilient demand for workers even as growth concerns mount.
Policy and economic highlights elsewhere included Danske Bank’s upbeat forecast that Denmark’s economy will expand 3.7% this year, supported by strong exports driven by Novo Nordisk. In Europe, Spain said it is confident of securing one of five EU artificial‑intelligence data‑centre projects and has set aside €800 million for the bid. Separately, AI player DeepSeek is reported to be close to raising about $7 billion.
Central banks stayed active on the sidelines. The Bank of Japan said it stands ready to continue raising rates to fight inflation and did not rule out further foreign‑exchange intervention to support the yen.
Markets were mixed in early trade. European equities slipped about 0.6%. In Asia, Tokyo rose 1.8%, Hong Kong fell 1.5% and mainland China edged up 0.5%. US futures pointed to a mixed open. Oil climbed roughly 2%, with Brent crude near $98 a barrel, as investors weighed trade disruption against persistent supply and geopolitical risks.