European luxury shares have slid on investor concerns that Hermes handbags and Dior slingbacks may be Beijing's next targets for retaliation, following the EU's decision to slap tariffs on China EVs,

China must "adapt its behaviour" to solve an escalating tariff row with Europe, EU chief Charles Michel said Friday, warning of the dangers of the dispute escalating into a full-blown trade war."We count on China to adapt its behaviour and to understand that we have to rebalance the economic relationships for more fairness,

European luxury shares have seen a significant drop, driven by investor fears that iconic brands such as Hermes handbags and Dior shoes might become the next casualties in the ongoing China-EU trade conflict.

Jens Eskelund, head of the EU Chamber of Commerce in China, says Beijing must look at the role its own policies are playing An EU-China trade war is "unavoidable" on current trends, according to Europe's top business leader in the country,