European stock markets opened higher today after several days of declines, buoyed by a rebound in major Asian markets and a strong response from China to U.S. tariff threats.

The UK’s FTSE 100 rose by 1% at the open, while France’s CAC 40 jumped 1.8%, and Germany’s DAX climbed 1.3%.

This rebound follows a tense back-and-forth between the U.S. and China over trade tariffs. In a bold statement, China said it would "fight to the end" after U.S. President Donald Trump threatened to impose an additional 50% tariff on Chinese imports unless Beijing backs down from its own retaliatory tariffs.

China's Ministry of Commerce accused the Trump administration of blackmail, calling the escalating tariffs "a typical unilateral bullying practice." If implemented, some American companies importing goods from China could be facing a staggering 104% tax.

The situation has escalated into a high-stakes standoff, with the global economy caught in the middle. As BBC correspondent Anthony Zurcher puts it, Trump appears to be playing a dangerous game of chicken with international trade.

Tariffs: a negotiation tool?

Sam Nunberg, a former adviser to President Trump during his 2016 campaign, told BBC Radio 4's Today programme that while tariffs are here to stay, the current extreme levels may be more of a negotiating tactic than a long-term plan.

“I believe the president has put out these humongous tariff rates as a starting negotiating point,” said Nunberg. “This is not where it’s going to end, but he’s also not going to backtrack completely.”

He added that the move would likely resonate with Trump’s political base, many of whom believe America’s manufacturing sector has been gutted by global trade deals. However, he warned of potential backlash if retaliatory tariffs take effect and tip the U.S. into a recession. Photo by Kaihsu Tai, Wikimedia commons.