Wall St down 1%, European stocks close lower

THE EUROPEAN COMMISSION sought clarity from the US after US President Donald Trump recommended on Friday putting a 50% tariff on EU imports from June 1, with Brussels' and Washington's trade chiefs due to talk later.

- REUTERS

The Commission, which oversees trade policy for the 27-nation European Union (EU), said it would not comment on the tariff threat until after a call between European Trade Commissioner Maros Sefcovic and US Trade Representative Jamieson Greer at 1500 GMT.

European stocks tumbled and the euro gave back some gains, while euro zone government bond yields fell sharply after Trump's announcement.

"This is a major escalation of trade tensions," said Holger Schmieding, chief economist at Berenberg. "With Trump, you never know. But this would be a major escalation. The EU would have to react and it is something that would really hurt the US and European economy."