President Donald Trump has vowed not to back down from his sweeping new tariffs, insisting that “sometimes you have to take medicine to fix something” - even as markets around the world reeled from the fallout.
London’s FTSE 100 index fell 230 points at the open on Monday, mirroring a global wave of selling triggered by Trump's decision to impose a minimum 10% tariff on all United States imports.
Matching tariffs aimed at nearly 90 countries are due to take effect on April 9.
Asian markets bore the brunt of the sell-off. Japan’s Nikkei plunged 7.8%, while Hong Kong's Hang Seng dropped over 12.5% in its worst day in 16 years.
Mainland China's Shanghai Composite fell 7.3%, and Taiwan's Taiex lost 9.7%.
In the US, Dow futures were down more than 1,500 points in early trading.
Nasdaq and S&P 500 futures also pointed sharply lower.
Trump’s move, which lifts the US tariff rate to its highest level since 1909, has sparked fears of a global trade war.
China responded with a 34% levy on US imports and warned further measures would follow. Analysts say the escalation leaves markets exposed to further volatility.