Global shares fell Friday after President Trump threatened to implement fresh tariffs, strengthening safe-haven currencies as investors look to de-risk.

Markets responded to Trump’s warning that the U.S. plans to impose an additional 10% tariff on imports from China, as he confirmed that 25% tariffs on products from Canada and Mexico will go ahead.

In Europe, the Stoxx 600 declined 0.6% Friday morning, with the basic materials and auto sectors among the weakest. The FTSE 100 was down 0.35%, while Germany’s DAX and France’s CAC 40 were both down 0.5%.

The new China tariff, set to become effective March 4 alongside tariffs on Canada and Mexico, tops up the 10% additional tariff Trump placed on Chinese products this month.

“Markets were rattled by mounting concerns that Trump’s latest tariffs targeting China, Canada, and Mexico could dampen global economic growth,” Tickmill Group’s Patrick Munnelly said.

Trump’s plans could expose over $1 trillion worth of imports to tariffs unless last-minute negotiations yield a resolution, Munnelly wrote in a note.

In Asia, the Hang Seng Index suffered its largest one-day loss since October, trading down 3.3%. South Korea’s Kospi closed down 3.4% while Japan’s Nikkei closed 2.9% lower.

The dollar rose as renewed concerns over trade tensions drove investors toward safe-haven assets. Tariffs are expected to lead to higher U.S. inflation and reduce the scope of interest-rate cuts by the Federal Reserve. The DXY dollar index increased 0.1% to 107.361, having earlier reached a two-week high of 107.451.

Bitcoin fell as demand for risky assets dropped, with the cryptocurrency hitting a three-and-a-half-month low of $78,273, according to LSEG.

Ten-year eurozone government bond and U.S. Treasury yields decline across the board by up to 4 basis points, according to Tradeweb data. The 10-year Bund yield falls 3.7 basis points to last trade at 2.380%, while the 10-year U.S. Treasury yield falls 4 basis points to 4.241%.

Gold is being pressured lower by the stronger U.S. dollar, which has advanced on fresh tariff concerns. Continuous gold futures are down 0.8% to $2,873.70 a troy ounce, and are on track to snap an eight-week streak of overall weekly gains.

Ronnie Harui contributed to this article.