At 10:00 AM in Lisbon, the EuroStoxx 600 index fell by 1.12%, reaching 481.84 points.
The stock exchanges in London, Paris, and Frankfurt saw declines of 0.34%, 1.13%, and 1.39%, respectively, while those in Madrid and Milan decreased by 0.65% and 1.41%.
Lisbon’s stock exchange maintained its opening trend, with the main PSI index rising by 0.94% to 6,465.31 points at 10:00 AM.
The euro increased to a new high of $1.1415, a level not seen since February 9, 2022, in the Frankfurt foreign exchange market, up from $1.1197 on Thursday.
The price of an ounce of gold, a safe-haven asset, surged to a new historic high of $3,218.09, compared to $3,158.59 on Thursday.
The Chinese government today announced an increase to 125% in tariffs imposed on products originating from the United States, continuing its policy of retaliating against tariff increases on Chinese goods decreed by Washington.
The trade war between the world’s two largest economies has rapidly intensified amid significant market volatility.
China insists that it does not want a trade war, but says it “is not afraid to face one if necessary.”
The measure from Beijing, set to take effect on Saturday, was confirmed by the Tariff Policy Committee of the State Council (the Chinese executive) in an official statement, which condemned the United States’ trade policy as a “grave violation” of international trade rules and “coercive unilateralism.”
In a turn of events, U.S. President Donald Trump announced on Wednesday evening a 90-day suspension of the so-called “reciprocal tariffs” imposed on the rest of the world but maintained and increased tariffs imposed on China.
The White House clarified on Thursday that the total tariff on Chinese products is 145%, as it includes a 20% tariff previously imposed on China due to the fentanyl crisis.
In recent days, Chinese state media have highlighted that the Asian country has diversified its export destinations over the past five years, making it less vulnerable to a trade war with the United States than during Trump’s first presidency (2017-2021).
