Asian stocks tumble after U.S. announces tariffs on Europe
Cherry blossoms bloom in front of a stock quotation board outside a brokerage in Tokyo
TOKYO (Reuters) - Asian stocks, already under pressure from growing global growth fears, tumbled on Thursday after New York markets slumped overnight because the United States opened a new trade war front by saying it will impose tariffs on $7.5 billion of goods from the European Union.
The United States and China have already hiked tariffs on each other's goods in a year-long trade row that has raised the risk of recession and caused major central banks to ease monetary policy.
The chance that Europe will respond in kind to U.S. tariffs is likely to further fuel concerns that global growth is set for a prolonged period of stagnation.
EU manufacturers are already facing U.S. tariffs on steel and aluminium and a threat from U.S. President Donald Trump to penalise EU cars and car parts.