European stock market declined after China imposed retaliatory tariffs on US

Reuters reports European shares fell and the DAX index confirmed a correction as China's retaliation to sweeping US tariffs heightened investor concerns over a global recession.

China imposed additional 34% duties on imports of all American goods, as well as restrictions on exports of certain rare earths to the US. Beijing announced these measures after Donald Trump imposed reciprocal tariffs on trading partners.

DAX was in a correction and fell 5%. A gauge of euro zone stock market volatility surged 8.68 points to 34.2. It was its largest one-day spike in two years, Reuters says. 

The tit-for-tat duties between the world's leading economies marked a significant escalation in the global trade tensions that could drive up prices, disrupt supply chains, and cut into corporate profits.

The market is now waiting for other nations to react to the new US import duties, the news agency says. France's industry minister Marc Ferracci called for a proportionate but firm retaliation. However, the official also notes that Europe remains open to negotiations.