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European Shares Shudder as Trade War Tensions Mount

European Shares Shudder as Trade War Tensions Mount In a dramatic market shift on Friday, European shares plummeted in response to China's retaliatory tariffs following U.S. President Donald Trump's sweeping levies. The situation has amplified fears of an impending global recession, gripping markets with uncertainty.The pan-European STOXX index dropped by 5.2% at 1131 GMT, marking a correction phase and sliding about 12% from its record-high close on March 3. Germany's DAX and the eurozone's blue-chip index also teetered on the brink, with respective drops of 5.7% and 5%.China escalated the trade war through substantial countermeasures, including a 34% tariff on U.S. goods and restrictions on some exports. Meanwhile, European markets, particularly the banking and luxury sectors, recorded significant losses amid growing volatility and economic growth concerns.

In a dramatic market shift on Friday, European shares plummeted in response to China's retaliatory tariffs following U.S. President Donald Trump's sweeping levies.

The situation has amplified fears of an impending global recession, gripping markets with uncertainty. The pan-European STOXX index dropped by 5.2% at 1131 GMT, marking a correction phase and sliding about 12% from its record-high close on March 3.

Germany's DAX and the eurozone's blue-chip index also teetered on the brink, with respective drops of 5.7% and 5%. China escalated the trade war through substantial countermeasures, including a 34% tariff on U.

S. goods and restrictions on some exports. Meanwhile, European markets, particularly the banking and luxury sectors, recorded significant losses amid growing volatility and economic growth concerns.

(With inputs from agencies.).