European stocks closed lower on Friday as trade tensions between the world’s two largest economies heightened.
The pan-European Stoxx 600 closed 0.7% lower to 371.36, with most sectors in negative territory. Autos stocks suffered sharp losses by the close, slumping around 2%.
The Chinese State Council said it decided to slap tariffs ranging from 5% to 10% on the additional imports in two batches, effective on September 1 and December 15. A 25% tariff will also be places on U.S. cars and 5% on auto parts, with effect from December 15.