European markets were in a downturn on Friday morning following China’s announcement that it would retaliate against Donald Trump’s plan to increase tariffs on Chinese products by an extra 10%. This looming threat of tariffs has deepened global trade concerns, leading to declines in the pan-European Stoxx 600 index, Germany’s DAX, France’s CAC 40, and the FTSE 100 in London. Earlier, Asian stock markets also fell sharply as President Trump vowed to impose 25% tariffs on imports from Mexico and Canada. Tokyo’s Nikkei experienced a 2.9% decline, while Hong Kong and Shanghai faced significant drops in their stock indices. China’s Commerce Ministry criticized the tariff hike as a violation of international trade rules, reminding that it would detriment American businesses and consumers. South Korea’s Kospi and Australia’s S&P/ASX 200 also showed declines. In the United States, markets closed lower on Thursday with the S&P 500 and NASDAQ composite seeing considerable dips, largely due to concerns about tariffs and their potential impacts. Despite these worries, the US economy reported improved inflation measures, though unemployment benefits filings rose slightly. Commodities like US crude oil and Brent crude experienced price drops, and the US dollar value fluctuated against other currencies such as the Japanese yen and euro. Analysts like Naeem Aslam and Matthew Ryan highlighted the uncertain economic landscape and pointed out the varied impacts of protectionist measures on different economies, suggesting a more insulated position for Britain in the face of potential trade wars.

Source: https://www.euronews.com/business/2025/02/28/markets-dip-as-china-vows-retaliation-over-trumps-extra-tariff-threat