TOKYO (Reuters) – U.S. stock futures fell and Asian shares held onto earlier-pared gains on Friday after U.S. President Donald Trump’s tariff hike on $200 billion of Chinese goods took effect, raising tensions between the world’s two biggest economies despite ongoing talks.

E-mini futures for U.S. S&P500 slipped after the higher tariffs kicked in, and were last down 0.6% in choppy trade.

Chinese shares, even more volatile, dropped sharply when the tariffs took effect but then recovered, with the Shanghai composite index last 1.9 percent higher.

MSCI’s broadest index of Asia-Pacific shares outside Japan, which dropped more than 1 percent early Friday, remained where they were when tariff increase kicked in, up 0.3%.

Japan’s Nikkei was off 0.3 percent.

European stock futures point to gain