Chinese stock markets have suffered heavy losses this Monday, following the announcement by US President Donald Trump of a new increase in tariffs on Chinese products, which has placed negotiations to end the trade war between the two countries on the verge of collapse.Stock market records fell sharply in mainland China and Hong Kong, and the yuan, the Chinese currency, suffered a drop of more than 0.40% against the dollar at 08.40 GMT.
In a message on his Twitter account, Donald Trump announced that tariffs on Chinese products were increasing. The Hang Seng index of the Hong Kong market fell by 2.90% at the close. The Shanghai Stock Exchange closed with losses of 5.58%, while the Shenzhen stock exchange, China’s second largest, was down 7.56% at the end of the session.
Since late February, the yuan had remained almost unchanged against the dollar, due to speculation that the world’s two largest economies were approaching a trade agreement. The currency has also become part of the negotiations after the US expressed concern that Beijing was deliberately depreciating its currency.