US President Donald Trump stirred the hornet’s nest after imposing sweeping tariffs on more than three dozen countries. The tariff announcement on April 2, dubbed Liberation Day is changing the landscape of global trade and commerce. Trump imposed 34% tariffs on China making it expensive for the Communist nation to conduct business in the US. However, the Xi Jinping administration hit back by imposing 34% reciprocal tariffs on all US goods from April 10.
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JUST IN: 🇨🇳 🇺🇸 China to impose additional 34% tariff on US goods.
— Watcher.Guru (@WatcherGuru) April 4, 2025
Reuters reported China’s Finance Ministry announced the imposition of an additional 34% tariff on all US goods as a countermeasure to Trump. Apart from China, many other countries are considering tit-for-tat measures to give a befitting reply to Trump’s trade policies. The global markets will be severely impacted by measures and countermeasures as countries look to safeguard their national interests.
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China Intensifies the Trade Wars With Additional 34% Tariffs
China has been aggressive in taking on the US by imposing tariffs a just few days after Liberation Day. Just recently, the Xi Jinping administration announced restrictions on local companies investing in the US. The move stops institutional companies from investing in the US financial sector making them miss out on bigger funds. The inflow of money into the US in terms of investments will slow down making the market lose out on funds.
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Trump might not take the countermeasures by China lightly and could impose further tariffs on other goods from the country. The broader development will only hurt the global markets as both the US and Asian equities are crashing. Dow Jones crashed more than 1,600 points on Thursday wiping away nearly $2.85 trillion worth of funds. Nasdaq plunged 1,050 points while the S&P 500 index fell 275 points. In addition, India’s Sensex and Japan’s Nikkei have both dipped close to 1,000 points on Friday, leading to a market bloodbath.