U.S. and European markets fell Monday as speculation over trade wars deepened worries across the globe.
U.S. stocks fell more than 1 percent at the end of the day, while European markets were down even more.
Losses were widespread but technology stocks suffered the most, dropping more than 2 percent in its biggest one-day decline since April.
U.S. President Donald Trump has announced plans to impose tariffs on Chinese goods, citing security concerns.
The U.S. is scheduled to start raising taxes on more than $30 billion in Chinese imports in two weeks. China has promised to retaliate immediately, putting the world’s two largest economies at odds.
On Sunday, Trump issued a warning to U.S. trading partners that unless they remove restrictions placed on American goods, they will face “more than Reciprocity by the U.S.A.”
“The United States is insisting that all countries that have placed artificial Trade Barriers and Tariffs on goods going into their country, remove those Barriers & Tariffs or be met with more than Reciprocity by the U.S.A. Trade must be fair and no longer a one way street!” Trump tweeted.
Trump has already annoyed major U.S. trading partners, including China, Canada, Mexico, the European Union and India, by imposing tariffs on steel, aluminum and other products from those countries.