(Nicole Bullock, Alexandra Scaggs & Emma Dunkley – Financial Times)
Stock markets in the world’s largest financial capitals sold off on Friday as Beijing signalled it was prepared to go toe-to-toe with the Trump administration in erecting new punitive tariffs.
The announcement by China that it has prepared retaliatory tariffs on 128 US products, accounting for roughly $3bn in imports, helped send European shares down sharply in midday trading, with the regional Stoxx 600 index falling 1.4 per cent to hit its lowest level since February 2017. That followed big drops in Hong Kong, Tokyo and Shanghai.
The Chinese move could be only a sign of what is to come, however: the plans — which include a 15 per cent tariff on US steel pipes, fresh fruit and wine and a 25 per cent tariff on pork and recycled aluminium — only address the White House’s steel and aluminium tariffs announced earlier this month. Click here to read more.