Global stocks plunged Tuesday as new US tariffs boosting a trade war kicked in, and weighed on commodities. Most European and Asian indexes were off to the day, with investor worries about economic instability.
China retaliated by imposing tariffs up to 15% on U.S. farm sales while Canada implemented counter-tariffs on American products, Prime Minister Justin Trudeau confirmed. Germany’s DAX dropped 1.8 per cent to 22,733.26, while the CAC 40 in Paris lost 1.1 per cent to 8,108.71. Britain’s FTSE 100 dipped 0.4% to 8,837.92.
Asian markets were also lower, with Tokyo’s benchmark Nikkei 225 losing 1.2 percent to 37,331.18 and Hong Kong’s Hang Seng falling 0.4 percent to 22,922.16. Kospi share price dropped 0.2 % in South Korea and Taiwan Taiex was down 0.7 %. 
The Wall Street futures were pointing to doubt, with the S&P 500 up 0.1% and the Dow Jones no movement. Monday’s session was marked by the S&P 500 losing 1.8% and the Nasdaq falling 2.6% after Trump said there was “no room left” for negotiations.
Concerns have been raised by financial analysts that strain created by these trade wars could persist to have negative economic impact for the medium-term. As tariffs take their toll, investors and companies prepare for more instability in world markets.
