Asian stock markets tumbled and Europe opened lower on Tuesday after Donald Trump threatened China with a further $200bn in tariffs, increasing fears that a long-simmering spat between the two countries risks turning into a damaging trade war.
The Shanghai Composite closed down 4 per cent, putting it below the 3,000-point mark for the first time in more than 20 months, while the Shenzhen Composite slumped almost 6 per cent.
Investors’ anxieties were sharpened after Mr Trump late on Monday asked officials to find a further $200bn in Chinese goods that could be subject to tariffs unless Beijing drops its vow to retaliate against an earlier set of US measures.
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