Market volatility surged as key risk gauges like the VIX jumped to multi-week highs after renewed U.S. tariff threats unsettled investors.

U.S. equities, the dollar, and long-dated Treasuries declined, reflecting a broad shift away from risk across global markets.

The tariff rhetoric raised concerns about a potential escalation in trade tensions with Europe, triggering reduced exposure to U.S. assets.

Analysts cautioned that while volatility has risen sharply, it has not yet reached panic levels, though it could increase further if trade uncertainty persists.