European equities fell sharply on Tuesday September 3rd, after China and the U.S., the world’s two largest economies began imposing new tariffs on each other's goods.
These downturns followed the Trump administration’s imposition of tariffs on $112 billion in Chinese goods on Sunday, and plans to impose duties on another $160 billion worth of Chinese products in mid-December.
On Monday, Beijing filed a complaint against Washington at the World Trade Organisation over U.S. import duties. China claimed the latest round of tariffs violated a consensus reached by the leaders of both countries in Osaka, Japan.
According to Bloomberg, Chinese and U.S. officials are struggling to agree on a schedule for a planned meeting this month to continue trade talks, after Washington rejected Beijing’s request to delay tariffs.
The date for a potential visit of Chinese officials to the U.S. capital has not been set yet, but that does not mean it will not happen, Bloomberg stated.
Trade tensions between China and the U.S. took their toll last month with major indexes experiencing their worst monthly performance last month since May.