EU warns of ‘major blow’ to global economy as US president reveals plans for 10% universal levies and higher ‘reciprocal’ duties

China said on Thursday that it will defend its "legitimate rights and interests" after the United States revealed what it called "reciprocal tariffs" targeting more than 60 countries. Newsweek has reached out to the White House for comment by email.

President Donald Trump's move to slap a 10% tariff on most goods imported to the United States, as well as much higher levies on dozens of rivals and allies alike, has intensified a global trade war that threatens to stoke inflation and stall growth.

The benchmark Stoxx Europe 600 index fell 2 per cent at the open, as investors flocked to haven assets including gold, Treasuries and German Bunds. Futures tracking the S&P 500 and the Nasdaq were down 2.8 per cent and 3.3 per cent respectively.

Financial markets around the world are reeling following President Donald Trump’s latest and most severe volley of tariffs