Global stock markets plunged Thursday morning following U.S. President Donald Trump’s announcement of broad new tariffs on international trade partners, including a blanket minimum tariff of 10% on all imported goods.

The move drew swift condemnation from key trading allies and raised fears of a prolonged and disruptive global trade war.

China, now facing combined tariffs of 54% after a fresh 34% hike on top of previously imposed 20% duties, called on the United States to cancel its “unilateral tariff measures” and resolve trade tensions through “equal dialogue,” according to a statement from the Chinese Ministry of Commerce. The ministry warned the new tariffs could “endanger global economic development and the stability of the supply chain.”

The European Union, which is now subject to a 20% tariff, also criticized the decision. European Commission President Ursula von der Leyen said the EU is prepared to retaliate. “The universal tariffs announced by the U.S. are a major blow to businesses and consumers worldwide,” she posted on X. “We will always protect our interests and values. But we’re also ready to shift from confrontation to negotiation.”

The announcement triggered immediate sell-offs in global markets. In Asia, Japan’s Nikkei dropped 4%, Hong Kong’s Hang Seng fell 2.4%, South Korea’s KOSPI lost 2.7%, and Australia’s ASX 200 slipped 2%.

In Europe, the pan-European STOXX 600 index slid 1.5% to a two-month low. Germany’s DAX dropped nearly 2.5%, France’s CAC 40 declined 2.2%, and Spain’s IBEX shed 1.5%. The UK’s FTSE 100 was down 1.5%.

U.S. markets had closed higher ahead of Trump’s Wednesday evening announcement in the White House Rose Garden, but futures took a sharp turn downward overnight. Dow Jones futures fell 2.7%, S&P 500 futures dropped 3.9%, and Nasdaq 100 futures plunged 4.7%.

Investors and economists are now closely watching for potential retaliatory measures and their impact on the already fragile global economy.