Stocks dive in early trading as investors seek safer assets following US tariffs 

Nasdaq futures dropped 3.2%, while European futures were down nearly 2%

Tokyo's Nikkei fell to 3%, reflecting eight-month lows, which led heavy losses across Asia.(Chinatopix Via AP)

Stocks dived on Thursday morning as investors scrambled for the safety of bonds, gold and the yen, fearing new tariffs from US President Donald trump have intensified a trade war which could threaten a world recession.

European stocks slumped following the announcement, with the Stoxx Europe 600 Index falling by 1.4% in Paris, with regional bourses all trading heavily in negative territory.