Global markets waver as US-China trade talks hit impasse

European shares fall as investors fret over looming US tariff deadline

European stock markets tumbled yesterday as investors grew increasingly anxious about the looming deadline for a US tariff hike.

The pan-European Stoxx 600 index fell 1.3 per cent, its worst day in three weeks, as concerns mounted that the US and China might not reach a deal to avoid a 25 per cent tariff increase on $200 billion worth of Chinese goods.

The US and China have until Friday to agree on a tariff deal, or the increase will take effect. The prospect of a trade war escalation has sent shivers through global markets, which have already been buffeted by concerns about slowing economic growth.

The falls were led by the German Dax, which slid 1.5 per cent, and the French CAC 40, which dropped 1.4 per cent. The UK's FTSE 100 index fell 0.9 per cent.

Investors have grown increasingly nervous about the trade tensions, which have been building for months. The US and China have been locked in a tit-for-tat trade war since last year, with both sides imposing tariffs on each other's goods.

The escalation of the trade war has already had a significant impact on global trade, with many companies and industries feeling the pinch. The International Monetary Fund (IMF) has warned that a prolonged trade war could have serious consequences for the global economy.

The falls were also driven by concerns about the impact of the tariffs on European companies that rely heavily on exports to the US. Many of these companies have already seen their profits and revenues take a hit as a result of the tariffs.

The US and China have been engaged in talks to try to resolve their differences, but the talks have been slow-going and there is little sign of a breakthrough. The deadline for the tariff hike is looming, and investors are growing increasingly anxious about the potential consequences.

The falls were also driven by concerns about the impact of the tariffs on European companies that rely heavily on exports to the US. Many of these companies have already seen their profits and revenues take a hit as a result of the tariffs.

The US and China have been engaged in talks to try to resolve their differences, but the talks have been slow-going and there is little sign of a breakthrough. The deadline for the tariff hike is looming, and investors are growing increasingly anxious about the potential consequences.