Global stocks and commodities were hit the most on Wednesday after Trump’s threats to impose additional 10 percent tariffs on $200 billion of imports from China.
The Shanghai Composite Index fell 1.76 percent on Wednesday, crawling back towards the 18-month low hit last week, while the Euro STOXX 600 halted its six-day rally to trade 1.12 percent lower.
In spite of being a safe haven asset, gold plunged for a second straight session to $1253.04 an ounce after falling to a bottom of $1249.11.
Brent crude was 1.95 percent down at $77.27 a barrel.
Regarding other commodities, zinc edged down 6 percent in Shanghai and copper sagged around 3.5 percent.
Given the high demand on commodities from China, gold, oil and other commodities were affected by the new U.S. plans that stepped up the trade war between the world’s two biggest economies.
The new 10 percent tariffs will target a new list of 6,000 Chinese goods, totaling $200 billion, and will become effective by the end of this month.
However, China vowed to retaliate again, where China’s Commerce Ministry said "the Chinese government will, as always, have to make the necessary counter-measures.”
Beijing also pledged to file an additional lawsuit against the US to the World Trade Organization, while called for joint efforts to safeguard the rules of free trade.
The U.S. dollar index rose slightly to 91.92, resuming its rebound attempts after dropping to a low of 93.42 on July 9.
The dollar strengthened 0.35 percent against the yuan to 6.6554.
Commodities’ currencies were hit the most, as the USDCAD was 0.19
percent higher, AUDUSD plummeted 0.64 percent and the NZDUSD fell 0.35 percent.