Trump has responded to threats of digital services taxes with threats of more tariffs, arguing that "only America should be allowed to tax American firms," Reuters reported. In February, Trump issued a memo calling for research into the best responsive measures to counter threats of digital service taxes, including threatening more tariffs.

But it is a risky bet. Although trade talks between the US and the EU had been moving slowly, Trump’s threat to put 50 per cent tariffs on all imports from the bloc from June 1 has raised the economic and diplomatic stakes dramatically.

Australia's central bank on Tuesday said inflation would be lower and unemployment higher due to the cascading effects of global trade tensions, and that was even assuming interest rates were cut as deeply as markets expected.

The first batch of car pricing data since new vehicle tariffs went into effect show an increase as a global trade war upends the industry.

Increased tariffs pose a risk of material slowdowns to both the US and global economy, though the likelihood of a global recession has lessened.

The trade war initiated by the United States against China has become a pivotal moment in the landscape of global trade and economic policy. Driven by President Donald Trump’s administration, the United States imposed massive tariffs, disrupted supply chains and stoked recession fears.

JBS , the world's largest meatpacker, reported a nearly 78% annual increase in net profit driven by its poultry and pork businesses in Brazil and the U.S., and said on Tuesday the global trade war has so far had little impact on its business.

President Trump on Friday took aim at Apple and the European Union in a significant escalation of his ongoing trade war. In a one-two posting spree on Truth Social early Friday, he threatened Apple with 25% tariffs on non-US-made iPhones,