Global stocks plunge as investors weigh report on US considering new tariffs on the EU and UK



Shalini Nagarajan|Markets Insider

Global stocks plunged on Wednesday on the prospect of fresh trade tensions between the US and Europe and an uptick in COVID-19 cases around the world.

Futures tied to the S&P 500 fell 0.7% as clusters of new coronavirus infections popped up in certain US states, adding to concerns of a second wave of the virus and new lockdown restrictions on business activity.

Indexes in Europe dropped with the Euro Stoxx 50 down 1.8% and UK’s benchmark FTSE-100 down 2.3%. 

European stocks extended early losses following a Bloomberg report on the US plans to slam new tariffs on $3.1 billion of imports from major European economies such as France, Germany, Spain, and the UK. 

This adds to investor concerns over geopolitical trade fights later in the summer. 

Washington plans to impose new tariffs on European exports including olives, beer, gin, and trucks, while simultaneously raising duties on products including aircraft, cheese, and yogurt, Bloomberg said. 

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