Stock markets fall after US tariffs spark trade war fears

• Global markets fall after US tariffs begin
• 25% tariffs on goods from Canada and Mexico
• 20% tariffs on goods from China
• Canada and China hit back with own tariffs on USA goods
• Fears of a global trade war

Stock markets fall after US tariffs spark trade war fears

Global stock markets have fallen following the start of US tariffs on goods entering the United States from Canada, China and Mexico.

Trump has slapped 25% tariffs on imports from Canada and Mexico and 20% tariffs against China.

Canada and China hit back by announcing their own tariffs on US goods, while Mexico said it had “contingency plans”, sparking fears of full-blown trade war.

The three major stock market indexes in the US sank following the news, while the FTSE 100 index of the UK’s biggest publicly-listed companies opened sharply lower on Tuesday and stock markets in Asia were also down.

Analysts have warned tariffs could push up prices for US households and could also have a knock-on effect on consumers across the world, including the UK.