World braces for US trade war escalation

Stock markets have fallen in Asia and Europe after US President Donald Trump suggested that new tariffs he is set to announce this week will hit all countries, not just those that have the biggest trade imbalances with the US.

Trump made the comments in preparation to unveil a massive slate of import taxes on Wednesday, in what he has called America's "Liberation Day".

The measures will come on top of tariffs already imposed by Washington on aluminium, steel and vehicles, along with increased levies on all goods from China.