After China announced it’s latest move to increase tariffs on US goods to 84 percent, global stock markets have started a free fall on Wednesday, April 9. On Wednesday, China declared that it would increase additional tariffs on all U.S. imports to 84 percent, effective Thursday, April 10, in response to President Donald Trump’s announcement of a 104 percent tariff.
In an official statement, China’s Commerce Ministry warned, “If the U.S. continues to escalate its economic and trade restrictions, China is fully prepared, with both the determination and the resources, to take necessary countermeasures and fight to the end.”
Global Stock Markets on a free fall after China’s announcement
Global markets plunged on Wednesday following the announcement of additional tariffs, with European indices falling sharply ahead of the Wall Street opening, as investors grew increasingly concerned about a deepening U.S.-China trade war.
Dow Futures fell by over 2 percent to 36,818.79 points following China’s announcement of new tariffs, down from the earlier level of 37,577.14 points prior to the news.
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In the UK, the FTSE 100 index dropped nearly 4 percent, falling to 7,603.25 points at 12:44 p.m. (BST), down from the previous close of 7,910.53 points.
Germany’s DAX index also saw a steep decline of over 4 percent, trading at 19,453.56 points as of 2:36 p.m. (CEDT), compared to its earlier close of 20,280.26 points.
Meanwhile, France’s CAC 40 index slid nearly 4 percent as well, reaching 6,825.79 points at 2:46 p.m. (CEDT), down from 7,100.42 points at the previous close.
US-China Trade war Escalates with both sides throwing tariffs on other
This ongoing battle of tariffs between US and China started on on April 2, When US President Donald Trump announced his reciprocal tariffs on other nations including China, on the occasion of his so called ” Liberation day”. After this announcement China was slapped with 34% tariffs on all it’s products exported to the US.
On Friday, April 4, China responded to the U.S. move by slapping an additional 34 percent tariff on all American imports. The retaliation rattled global investors, triggering a wave of sell-offs that led to a market crash that same day. In response, President Donald Trump issued a warning to China on Sunday, April 6, stating that if the 34 percent tariff wasn’t withdrawn, the U.S. would impose a fresh 50 percent tariff on all Chinese goods.
On Tuesday, April 8, the White House followed through, announcing an additional 50 percent tariff on Chinese imports, raising the total tariff rate to 104 percent. White House Press Secretary Karoline Leavitt stated, “China made a mistake by retaliating. When America gets hit, it hits back even harder. That’s why the 104 percent tariffs on China will take effect tonight. However, if China initiates talks for a deal, the President will respond with great generosity.”
