President Donald Trump has finally made good on a campaign promise to raise tariffs on Chinese imports – announcing on Saturday duties of 10% on all Chinese goods coming in the country as part of sweeping trade measures that also targeted Mexico and Canada.

U.S. futures and global stocks were hit by a selloff early on Monday as markets around the world braced for a potential trade war triggered by President Donald Trump’s decision to impose sweeping tariffs on imports from Canada, Mexico, and China—which warned of “necessary countermeasures.”

Shares in Europe and Asia have fallen after US President Donald Trump announced tariffs on Canada, Mexico and China, and said tariffs on the EU would "definitely happen". The German and French stock markets were down about 2%, with shares in carmakers among the worst hit, while London's FTSE 100 dropped more 1%.

A growing number of countries, including American allies, are striking trade deals as the Trump administration erects a higher fence around its global commerce.

Shares of automakers and megacap tech stocks bore the brunt of a wider equity pullback on Monday after U.S. President Donald Trump ordered sweeping tariffs against Mexico, Canada and China, sparking fears of a global trade war that could hit growth.

Good morning. Donald Trump’s tariffs unleash market chaos. Elon Musk’s team is halting Treasury payments to US contactors. And Beyoncé and Kendrick Lamar win big at the Grammys. Listen to the day’s top stories.

Global markets started the week in the red on the first day of trading after President Donald Trump's tariff threats for key trading partners. On Saturday, Trump ordered 25% tariffs on goods from Canada and Mexico and a 10% tariff on China,

Global shares are mostly declining as worries grow about President Donald Trump imposing tariffs on key U.S. trading partners

By Yoruk Bahceli, Tom Westbrook and Naomi Rovnick LONDON/SINGAPORE (Reuters) - Financial markets that had bet trade wars could be avoided are reassessing the risks of a sharp global slowdown, resurgent inflation and a pause to Federal Reserve rate cuts following Donald Trump's tariffs on top U.