Stock markets have plummeted as the 2 April implementation day of US tariffs ticks closer.
Benchmark stocks in Asia were rattled at the lack of progress in halting US President Donald Trump’s taxes which are due to come into force on US imports from Wednesday.
After delays, 25% tariffs are to be levied on all cars entering the US on what Mr Trump has called “liberation day”.
Trade barriers are also expected to be announced on countries deemed to be giving the US a bad deal on trade.
In Japan, the Nikkei stock index lost nearly 4% at points before closing 3.86% down, while Korea’s Kospi index dropped 2.83%.
European markets followed suit with the UK’s FTSE 100 list of most valuable London Stock Exchange companies down 1%, falling to a more than two-week low.
The larger FTSE 250, which contains more companies based in the UK, lost a large 1.55%, dipping to a level last seen in nearly a year.
Not since late April last year was the index at such a low.
Read more:
What will happen on ‘liberation day’ and how does it affect UK?
Concerns of a worsening trade war are rising – adding taxes to all goods entering the US would force manufacturers to increase their prices to pay the tariffs, raising the price for American consumers and making the products less competitive.
The UK government has been trying to negotiate an exemption with the US government to prevent UK exports from being hit by the tariffs but has so far been unsuccessful.
Germany’s Dax, France’s CAC 40 and the European-wide Stoxx all shed more than 1%.
Gold has reached another record high price as investors put money into investments perceived as safer than some stocks.
There’s been little change in the pound as it has remained around the $1.29 mark, seen over the last 10 days. The pound slid against the euro, however, down to €1.195, having dropped from €1.20 on Friday.
