The Federal Reserve has signalled its willingness to intervene if market pressures intensify under fresh tariffs, prompting concerns over inflation and prompting investors to offload bonds and dollar holdings.

Brussels is considering a new digital levy on major technology firms if talks with the US collapse, with the Commission’s leader calling for a balanced deal and warning of economic risks tied to further trade measures.

Stock markets surged after the US announced a temporary halt on some duties while simultaneously raising tariffs on goods from a key Asian trading partner, prompting both optimism about near-term gains and caution over possible disruptions to global commerce.

Proposed steep tariffs on overseas goods by the US administration have raised concerns among major economies and businesses, prompting fears of significant disruption to global trade routes and negotiations.