Global stocks slid on Monday and U.S. oil prices slumped after U.S. President Donald Trump announced tariffs on Chinese goods and Beijing responded with similar measures in an escalating trade dispute.
Fears the spat between the world’s two largest economies could intensify added to pressure on oil prices, which extended Friday’s big fall into the start of week, while the dollar retreated from near 3-week highs against the safe-haven yen.
Trump announced tariffs on Friday on $50 billion of Chinese imports, including cars, starting on July 6.
China said it would retaliate immediately by slapping duties on American export products, including crude oil, and suspend all previous trade agreements with Trump’s administration.
The exchange of blows between Beijing and Washington has heightened fears of a broader and more protracted dispute, sending Asian shares to a 2-1/2 week low.