Stocks dip as tariff threats cast pall over global trade

US STOCKS slid last week as tariff threats cast a shadow over the future of global trade and the economic cycle.

US President Donald Trump was throwing even more Twitter fire-bombs than usual. First, he threatened China, saying that he would impose tariffs on a further US$200 billion of imports from China, which - in addition to the original US$50 billion - would mean roughly half the imports would face duties. Chinese stocks plunged and US markets followed suit, albeit with less marked declines.

Late in the week, Mr Trump vowed to respond to European tariffs on Harley Davidsons, bourbon and lobster with tariffs on European cars. The shares of major car makers including Mercedes-Benz parent Daimler, Volkswagen and BMW fell sharply.…