US President Donald Trump has announced an increase in tariffs against China to 125%, escalating the ongoing trade war between the two nations. This follows China's own retaliation, which imposed 84% tariffs on U.S. goods, effective April 10.
The latest round of tariffs, which took effect at 12:01 AM EST on Wednesday (04:01 GMT), has already sparked global market turmoil, CNBC reported. Stocks in the U.S., Asia, and Europe fell, and bond yields rose, signaling investor concerns.
In response, Trump announced a 90-day pause on tariffs for non-China trade partners, effective immediately. However, the 125% tariff on China remains in place. This move has sparked a rise in U.S. stocks, but details about the impact on other nations are still unclear.
China's Finance Ministry has criticized the U.S. move, calling it a "mistake on top of a mistake."
Meanwhile, the European Union has announced its own countermeasures, which will come into effect on April 15, further heightening tensions in the global trade environment.
The New York Times said the S&P 500 dropped and came close to entering a bear market. Asian and European stocks also declined. Bond yields rose, and the dollar weakened — a rare mix that signals investor anxiety and fear of a slowdown.
Despite the turmoil, President Trump downplayed concerns, posting on Truth Social: "BE COOL! Everything is going to work out well." He also wrote, ''THIS IS A GREAT TIME TO BUY !!! DJT.''
U.S. Trade Representative Jamieson Greer defended the tariffs, calling the trade deficit a national emergency and insisting the measures were necessary to restore the country's manufacturing strength.
(This is a developing story)
