BEIJING – Global stock markets plunged Friday after President Donald Trump’s surprise threat of tariff hikes on additional Chinese imports.
In early trading, London’s main index lost 2% and Frankfurt fell 2.5%. Tokyo’s benchmark was off 2.1% and Hong Kong retreated 2.5%. Markets in Shanghai, Sydney and Paris also fell.
Trump’s announcement of 10% tariffs on $300 billion of Chinese goods, due to take effect Sept. 1, surprised investors after the White House said Beijing promised to buy more farm goods. That came as their latest round of trade talks ended in Shanghai.
China’s government added to investor unease by threatening unspecified retaliation if Trump’s tariff hike goes ahead.