EU had offered to cut tariffs on US cars and industrial goods in 'zero-for-zero' deal negotiations

In the US, the major stock indexes, the S&P 500, the Dow Jones Index, and Nasdaq all fell sharply in early trading before recovering in the afternoon. Picture: Bloomberg

A rapidly-escalating global trade war wiped trillions off global stock markets on Monday as investors, businesses, and governments across the world attempted to navigate a series of tariff announcements set off by US president Donald Trump in recent days.

The European Union confirmed it had offered to cut all tariffs on industrial goods and cars from the US as part of negotiations to prevent a trade war.