World leaders blast Trump tariffs as markets slump

(NEW YORK) -- Foreign stock markets tumbled on Thursday morning following President Donald Trump's announcement of a raft of tariffs on America's trade partners -- including a minimum baseline tariff of 10% on all nations.

American trading partners reacted to Trump's tariffs announcement with condemnation and concern, warning that the measures could touch off a far-reaching and costly trade war.

China -- hit with 34% tariffs on top of 20% tariffs Trump previously announced -- urged the U.S. to "immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue," a Chinese Ministry of Commerce spokesperson said in a statement.

The tariffs will "endanger global economic development and the stability of the supply chain," they added.

The European Union -- now facing a 20% tariff -- is prepared to respond," European Commission President Ursula von der Leyen said. "The universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide," von der Leyen wrote in a post to X on Thursday.

"We'll always protect our interests and values," she added. "We're also ready to engage. And to go from confrontation to negotiation."

Asian markets led the global stock market slide on Thursday morning. Japan's Nikkei index dropped 4% after opening, Hong Kong's Hang Seng Index slid 2.4%, South Korea's KOSPI fell 2.7% and Australia's ASX 200 fell 2%.

In Europe, the pan-continental STOXX 600 index fell 1.5% to a two-month low. Germany's DAX fell nearly 2.5%, the French CAC 40 slipped 2.2% and Spain's IBEX index dropped 1.5%. Britain's FTSE 100 index lost 1.5%.

U.S. markets closed up ahead of Trump's Wednesday Rose Garden presentation, but stock futures dropped on Wednesday night. Dow Jones futures plummeted 2.7%, S&P 500 futures sank 3.9% and futures tied to the NASDAQ 100 dropped 4.7%.

European leaders were quick to warn of potential knock-on effects.

In a Facebook post, Italian Prime Minister Giorgia Meloni called the tariffs targeted toward the European Union "wrong."

She added, "We will do everything we can to work towards an agreement with the United States, with the aim of avoiding a trade war that would inevitably weaken the West in favor of other global players."

German Vice Chancellor and Economy Minister Robert Habeck said Wednesday should be remembered as "inflation day" for American consumers. "The U.S. mania for tariffs could set off a spiral that could also pull countries into recession and cause massive damage worldwide," Habeck said.

British Prime Minister Keir Starmer said Trump "acted for his country, and that is his mandate. Today, I will act in Britain's interests with mine." The U.K. is facing a 10% tariff on all its goods.

"Clearly, there will be an economic impact from the decisions the U.S. has taken, both here and globally," Starmer added. "But I want to be crystal clear: we are prepared, indeed one of the great strengths of this nation is our ability to keep a cool head."

In Japan, Chief Cabinet Secretary Yoshimasa Hayashi said Tokyo "once again conveyed to the U.S. government that the recent measures are extremely regrettable and have strongly requested that they be reconsidered." Japan is facing 24% tarrffs.

The measures, he added, "could have a significant impact on economic relations between Japan and the U.S., and ultimately on the global economy and the multilateral trading system as a whole."

South Korea's acting President Han Duck-soo instructed the government to "pour out all of its capabilities at its disposal to overcome this trade crisis," in a statement quoted by the Yonhap news agency.

Han described Trump's measures -- which included 25% tariffs for all South Korean goods -- as "very grave" and warned of "the approach of the reality of a global tariff war."

Smaller nations also railed against Trump's measures. Fiji's Deputy Prime Minister Biman Prasad criticized the 32% tariffs to be imposed on the Pacific island nation as "disproportionate" and "unfair."

ABC News' Jack Moore, Leah Sarnoff, Will Gretsky and Joe Simonetti contributed to this report.

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