AFP, Hong Kong :
Hong Kong and Shanghai stocks led a sell-off across Asian and European markets Tuesday on rising trade war fears after Donald Trump threatened fresh tariffs on Chinese imports and Beijing warned of countermeasures.
Trump said he had asked the US Trade Representative to identify $200 billion worth of imports to be targeted, adding he would hit a further $200 billion if Beijing retaliates.
Investors were already on edge after the world’s top two economies on Friday announced tit-for-tat measures on goods valued at about $50 billion as the US president pushes ahead with his protectionist America First agenda.
“The trade relationship between the United States and China must be much more equitable,” he said in explaining his decision.
China slammed the threats as “blackmail” and warned that if the US followed through with the tariffs it would “have no choice but to take comprehensive measures of a corresponding number and quality and take strong, powerful countermeasures”.
The development took some by surprise and stoked fears of a potentially damaging trade war between the world’s top two economies.
