Donald Trump’s latest salvo in trade hostilities between the US and China caused further volatility for global markets on Thursday.
The FTSE 100 Index was trading at a six-week low after the US President last night accused China of breaking the deal the countries had reached in trade talks.
The comments to supporters at a campaign rally in Florida follow his tweet on Sunday in which he vowed to double tariffs on $200 billion of Chinese goods tomorrow.
China said it would hit back with “necessary countermeasures” if Trump goes ahead with the threat.
The latest war of words comes as investors await the result of talks between the US and Chinese trade negotiators in Washington today.
Their failure to strike a deal would have major implications for the global economy, with the IMF recently blaming higher tariffs as a reason for cutting forecasts for this year.
The escalation of tensions caused Asian stock markets to fall to eight-week lows overnight, and mining and industrial stocks bore the brunt in London.
