Stock markets across Europe and beyond fell sharply this morning following a dramatic escalation in the global trade war by former US President Donald Trump.
On Thursday night, Trump announced a new wave of tariffs on imports from 92 countries, igniting fears of a significant blow to international commerce and a renewed slowdown in global economic growth.
In early trading, Germany’s DAX index dropped by 1.1 per cent, while France’s CAC 40 fell by nearly 1 per cent and Spain’s IBEX lost 0.6 per cent. London’s FTSE 100 was also down 0.5 per cent despite the UK and EU finalising a trade deal with the US earlier this week.
Economists warned the tariffs could damage business confidence and disrupt supply chains just as global trade had started to stabilise post-pandemic.
“This is a huge blow to global commerce,” said Atakan Bakiskan, US economist at Berenberg Bank. “The tariffs distort competition between firms producing in the US and those based abroad.”
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