Most Gulf markets in red on trade war fears

DUBAI: Gulf stock markets fell in line with global shares on Monday, as US President Donald Trump’s tariffs on Canada, Mexico and China sparked fears of an escalating trade war and its potential impact on global economic growth.

President Trump said on Sunday the sweeping tariffs that he has imposed may cause “short-term” pain for Americans, as global markets reflected concerns the levies could undermine growth and reignite inflation.

Critics say the Republican president’s plan to impose 25% tariffs on Canada and Mexico and 10% tariffs on China will slow global growth and drive prices higher for Americans.

Saudi Arabia’s benchmark index dropped 0.3%, hit by a 2.2% fall in ACWA Power Company and a 2.5% decrease in Saudi Awwal Bank, despite reporting a rise in annual profit.