The trade tensions between the United States and China have flared up once more, as both nations reintroduce steep tariffs, reigniting fears of a prolonged economic conflict.
China has slapped an 84% tariff on U.S. imports, a significant hike from the previous 34%, in direct retaliation to the U.S. government’s imposition of a staggering 104% tariff on Chinese goods. The U.S. tariff, announced under President Donald Trump’s renewed economic strategy, took effect today.
China’s new tariff will take effect Thursday and targets a broad range of American products, signaling a no-holds-barred approach in response to what it called “economic aggression.”
The market reacted swiftly to the news. U.S. stock index futures took a sharp hit Dow E-minis fell by 1.87%, S&P 500 E-minis dropped 1.72%, and Nasdaq 100 E-minis slid 1.45%.
