Global stock markets are plunging on Friday as China retaliates against US President Donald Trump's increased tariffs, heightening the trade war between the two major economies. Following the US imposing a 34% tariff on Chinese imports, China announced it would reciprocate with a comparable tariff on all US products from April 10. The escalating trade tensions between the US and China have triggered a sharp decline in the German DAX index.

The German index dropped over 1,000 points, about 5%, hitting a low of 20,590 points, resulting in an overall weekly decline of approximately 8%. European markets also experienced significant losses, with indexes dropping by around 5%. Additionally, crude oil prices plummeted to their lowest level since 2021.

The Spanish IBEX35 index saw a similar decline of about 5%, falling sharply to 12,500 points due to the impact of the US-China trade dispute. Despite the challenges posed by the tariffs, the Spanish selective index demonstrated better resilience compared to its European counterparts, with a relatively modest 1.2% decrease.

French President Emmanuel Macron advised French companies to halt planned investments in the US, echoing sentiments expressed by the German Economy Minister Robert Habeck, who suggested that a united European response could compel Trump to yield. However, French Finance Minister Eric Lombard cautioned against retaliatory measures that could adversely affect European consumers.

The European Union's trade commissioner Maros Sefcovic highlighted the detrimental impact of US tariffs and emphasized the EU's commitment to constructive negotiations while being prepared to safeguard its interests in the midst of the escalating trade tensions.