Such gloom will shroud not only global financial markets but also the real economy, analysts noted.

Tariff hikes "will ripple across the global economy and that will definitely be a drag on growth," said Sarah Hunter, chief economist at Australia's BIS Oxford Economics.

In its latest World Economic Outlook report released in April, the International Monetary Fund (IMF) lowered its 2019 global growth forecast to 3.3 percent, down 0.2 percentage point from its estimation in January, saying "the downturn was larger and appeared related to a souring of market sentiment, in part because of trade tensions."

"If investors don't have the feeling that this problem can be solved soon, the appetite for investments ... throughout the world is weakening," said Jean-Claude Juncker, president of the European Commission.

(Xinhua reporters Zhong Ya in Beijing, Yang Chenglin in Washington, Yang Shilong in New York, Xu Jing in Chicago, Wang Zichen in Brussels, Chen Wenxian in Jerusalem, Levi J Parsons in Sydney and Zodidi Mhlana in Johannesburg also contributed to the story.)

(Video reporters: Xie E, Zhao Yuchao, Pan Gepin, Zhen Jianghua, Hu Yousong, Liu Jie, Sun Ding, Xiong Maoling, Lin Yuan; Video editor: Zhang Xinyi)

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