China sets 84% tariffs on all US products in reaction to Trump's 104%

China has implemented brand new tariffs of 84% on the importation of all US products, a measure that caused stock markets to decline further, heightening anxieties of further intensification in Donald Trump’s trade conflict.

 

The Chinese finance ministry announced on Wednesday that it would enforce 84% tariffs on US goods starting Thursday, an increase from the previously stated 34%.

 

This decision followed shortly after new tariffs on imports to the United States from multiple economies surged, with tariffs placed on Chinese commodities since Trump's return to the White House hitting an astounding 104%.

 

China’s response caused stock markets, which had tumbled on Wednesday, to fall even more with key indices down in the UK, Germany, France, and Spain. The FTSE 100 in London dropped by 3.5%, Germany's Dax index fell by 3.8%, France’s Cac 40 decreased by 3.9%, and Spain's Ibex dipped by 3.2%.

 

Prior to the announcement of the 84% tariffs, the Chinese government stated it was not looking to engage in a trade conflict, but “will never stand by and let the legitimate rights and interests of the Chinese people be harmed and stripped.”

 

The global economy has been disturbed since broad US tariffs of 10% went into effect over the weekend, causing significant market sell-offs globally and inciting worries of a recession.

 

The declines in Europe followed another volatile day on several Asian markets. Japan’s Nikkei index closed almost 4% down, while Taiwan’s leading stock index was 5.8% lower. Hong Kong’s Hang Seng index recovered some earlier losses to end 0.4% lower, and South Korea’s Kospi 200 index dropped by 1.8%.

 

Meanwhile, China’s stock markets rose, seemingly weathering the challenges after government measures. The SSE composite index in Shanghai closed 1.1% higher, while the Shenzhen SE composite increased by 2.2%.

 

Oil prices dropped for a fifth consecutive day on Wednesday, reaching the lowest level in four years, since February 2021, due to concerns that a global trade conflict would lessen demand and impact economic growth negatively. Brent crude oil futures prices declined to as low as $58.47.