London — Fears of a trade war are roiling financial markets Friday, with stocks under pressure around the world and the dollar in retreat.
A day after the Trump administration imposed tariff hikes on Chinese goods, Beijing has threatened import duties on U.S. goods including pork, apples and steel pipes, accentuating fears of a global trade war.
“For a person who’s been obsessed with stock market gains since his election victory 16 months ago, President Donald Trump doesn’t appear too concerned about the impact his tariffs are having at the moment,” said Craig Erlam, senior market analyst at OANDA.
Though the European Union has been granted a possible exemption, stock markets across the region have fallen sharply.
In early afternoon trading, Germany’s DAX was down 1.7 percent at 11,900 while the FTSE 100 index of British shares fell 0.6 percent to 6,910.
France’s CAC-40 was 1.5 percent lower at 5,089. In Asia, markets ended sharply lower after a stomach-churning ride.
Japan’s benchmark Nikkei 225 index plunged 4.5 percent to 20,617.86, its second-biggest daily decline in a year, and South Korea’s Kospi tumbled 3.2 percent to 2,416.76.