Asian markets collapsed Monday after China hammered the United States with its own hefty tariffs, ramping up a trade war that many fear could spark a recession.

Trading floors were overcome by a wave of selling as investors fled to the hills on the worst day for equities since the pandemic, with Hong Kong shedding more than 10 percent, Tokyo diving eight percent and Taipei more than nine percent.

Futures for Wall Street's markets were also taking another hammering, while concerns about the impact on demand also saw commodities slump.

Donald Trump sparked a market meltdown last week when he unveiled sweeping tariffs against US trading partners for what he says was years of being ripped off and claiming that governments were lining up to cut deals with Washington.

But after Asian markets closed on Friday, China said it would impose retaliatory levies of 34 percent on all US goods from April 10.

It also imposed export controls on seven rare earth elements, including gadolinium -- commonly used in MRIs -- and yttrium, utilised in consumer electronics.

Hopes that the US president would rethink his policy in light of the........

© International Business Times