President Trump’s escalating trade war with China weighed on global markets on Wednesday. Losses extended to Chinese, European and finally US stocks. Chinese companies have been the most affected by a potential trade war.
The sell-off across Europe was broad was seen as major markets retreated by more than 1%, while Chinese indexes ended down nearly 2% after the Trump administration threatened to impose new tariffs on Chinese goods. On Tuesday evening, Trump promised to impose a anew tariffs on an additional $200 billion on Chinese products, including chemicals, handbags, oil and fish.
This comes just days after the United States began to charge $ 34 billion in Chinese goods. In an attempt by China to respond to the infringement, the government said at Wednesday it would take unspecified countermeasures, causing investors to worry about the fate of world trade and the two largest economies in the coming period.
