Global markets experienced a downturn on Tuesday as China’s imposition of sanctions against U.S. subsidiaries of South Korean shipbuilder Hanwha Ocean reignited concerns over escalating trade tensions with Washington. European and Asian markets bore the brunt of the fallout, with France’s CAC 40 dropping 0.8% to 7,873.25, Germany’s DAX losing nearly 0.9% to 24,181.83, and Britain’s FTSE 100 shedding 0.2% to 9,426.92. Futures for the S&P 500 and Dow Jones Industrial Average also declined by 0.8% and 0.5%, respectively, reversing gains from Monday’s recovery. In Asia, Japan’s Nikkei 225 plummeted 2.6% to 46,847.32, while Hong Kong’s Hang Seng and Shanghai Composite fell 1.7% and 0.6%, respectively. The sanctions, targeting five Hanwha Ocean subsidiaries, are seen as a direct response to U.S. efforts to bolster its shipbuilding industry, which has been overshadowed by China’s dominance in the sector. Hanwha Ocean’s shares fell 5.8% in Seoul, and the benchmark Kospi dropped 0.6%. Meanwhile, Australia’s S&P/ASX 200 edged up 0.2%, and energy markets saw declines in crude oil prices. Investors are now closely monitoring remarks by U.S. Federal Reserve Chair Jerome Powell for insights into the economic outlook. The sanctions and their ripple effects underscore the fragility of global trade relations and the potential for further market volatility.