Global stocks weakened Monday as
investors reacted to the latest threats on tariffs from President Donald Trump that look to escalate the brewing trade war between Washington and its economic allies.
The President Tweeted Sunday that the U.S. was preparing "more than reciprocity" to trade partners that impose what he called "artificial" barriers to American companies, a threat that suggests reports of a plan to limit Chinese investment into U.S. tech companies is close to being announced.
Trump's Tweets followed his Friday vow to slap fresh tariffs on European auto imports, a move that sent shares in German carmakers sharply lower Friday and has investors increasingly convinced that 'tit-for-tat' levies will be imposed on markets around the world, slowing global economic growth and hammering stock market valuations. Bank of America Merrill Lynch said the current escalation is "really just the first stage of new arms race between US & China to reach national superiority in technology, and protectionism inevitably on rise to address inequality."