Fundamental Comment

European shares slide after Trump’s new tariffs threat

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European shares opened in red on Friday amid escalating woes of a global trade war between the world’s two biggest economies as President Trump warned of further tariffs on China.

STOXX Europe 600 index subtracted 0.52 percent to 374.19 points and Euro STOXX 50 shed 0.77 percent to 3,403.50.

Germany’s DAX 30 slipped 0.71 percent to 12,217.35, French CAC 40 edged down 0.54 percent to 5,248.08.

U.K. FTSE 100 plunged 0.19 percent to 7,185.57.

However, European shares may end the week on a slight gain after a 2.5 percent gain recorded on Thursday.

The trade war tensions between the U.S. and China escalated on Wednesday as Trump directed U.S. trade officials to identify tariffs on $100 billion more Chinese imports.

Trump’s threat came in retaliation to China’s imposition of tariffs on 106 US products, worth $50 billion.

If the U.S. insisted on its unilateral protectionist policies against China “the Chinese side will take them on until the end at any cost … We don’t want a trade war, but we aren’t afraid of fighting one,” China’s Ministry of Commerce said in a statement.

The U.S. dollar soared to 90.15 after hitting a top of 90.28, ahead of U.S. non-farm payrolls report due later in the day.

American employers may have created 188,000 jobs in March, following a stellar 303,000 jobs in February, while unemployment may fall to 4.0 percent.

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