The US president implemented a 25% tariff on all steel and aluminium imports, aiming to bolster domestic industries. But the backlash was immediate. Canada hit back with its own matching tariffs on nearly $30 billion worth of US imports, with an imminent start date. Europe won’t be far behind. The region plans to roll out $28 billion worth of retaliatory tariffs come April, targeting iconic American produce like bourbon, motorcycles, and peanut butter. With companies likely to push a lot of those extra costs onto everyday consumers, the economy could feel the pinch – all while trade tensions ramp up. No wonder investors are sweating.

After dominating for over a decade, US exceptionalism may be fading. Wall Street’s infatuation with Big Tech looks less full-on than usual, with investors rethinking the market’s long-held narrative. Case in point: Citigroup just downgraded US stocks to “neutral” while upgrading Chinese ones to “overweight”, reflecting newfound optimism for China’s offerings. It’s early days, but if global markets can hold the momentum, they could finally narrow the gap between them and their US rivals.

Europe’s defence splurge is on. Germany’s eyeing a €500 billion ($545 billion) defence and infrastructure fund, while the European Investment Bank plans to double or even triple its related funding. That aligns with the “ReArm Europe” plan, which could mobilise up to €800 billion ($872 billion). The question underneath it all, though, is how much Europe will bend its financial limits to fund this spree.

China’s consumer prices quickly headed south – which in fairness, could’ve been distorted by seasonal quirks. But still, it lays bare just how weak domestic demand is. The government has tried to encourage more spending, but if consumers refuse to play ball, it may take a much bigger dose of fiscal and monetary stimulus to get the job done.