China has fired back in the ongoing trade war with the United States, announcing a staggering 84% tariff on U.S. imports effective Thursday.
The move is a direct response to Washington’s recent decision to impose a 104% tariff on Chinese goods, as tensions between the world’s two largest economies intensify.
According to a statement by the Chinese Ministry of Finance, the retaliatory measure comes as a result of what it termed “repeated errors” in U.S. trade policy.
The fallout was immediate. U.S. stock index futures took a sharp dive, Dow E-minis down 1.87%, S&P 500 E-minis fell 1.72%, and the Nasdaq 100 E-minis dropped 1.45%, signalling investor anxiety over the long-term effects.
Sectors likely to be hit hardest include American Agriculture and manufacturing Sectors.
Soybeans, pork, and other exports now face an uphill battle in China, while U.S. firms exporting machinery and industrial goods could suffer major losses.
Economic analysts warn the tit-for-tat could deepen global market instability, disrupt supply chains, and inflate costs for consumers and businesses on both sides.
Meanwhile, global stakeholders, including the European Union are calling for de-escalation and a return to dialogue, citing the broader impact on international trade.
As the tariff war escalates, all eyes remain on Washington and Beijing, with the hope that both powers will choose cooperation over confrontation.
(Editor: Anoyoyo Ogiagboviogie)
