In response to a fresh wave of tariffs imposed by former President Donald Trump, China has announced a sharp increase in duties on U.S. goods, raising them to 84% starting Thursday—more than double the previously announced 34%. The announcement was made by China’s Ministry of Finance on Wednesday, marking a significant escalation in the ongoing trade conflict between the two economic giants.
Trump’s latest tariff measures include a sweeping 10% tax on nearly all imports, with targeted tariffs of up to 50% on goods from more than 50 countries taking effect early Wednesday morning. The most aggressive action, however, was directed at China, with tariffs reaching a staggering 104%—including an initial 20%, a 34% retaliatory fee, and a fresh 50% hike.
White House Press Secretary Karoline Leavitt defended the aggressive policy stance, stating, “It was a mistake for China to retaliate. When America is hit, President Trump hits back harder. That’s why 104% tariffs will go into effect tonight.”
Financial Markets React
The volatile trade developments have shaken global markets. Although U.S. stocks rebounded briefly on hopes of potential negotiations, the market closed in the red. Asian and European markets also declined on Wednesday, and U.S. stock futures pointed to further losses. Trump’s advisors report that about 70 countries have reached out for discussions, seeking exemptions or revised tariff terms. However, China has remained resolute, calling Washington’s moves “a mistake on top of a mistake” and insisting it will not yield to pressure.
Additionally, China has started censoring social media discussions around tariffs. Searches and hashtags related to “tariff” and “104” have reportedly been restricted on Weibo, the country’s popular social media platform.
Trump Prioritizing Allies for Trade Talks
National Economic Council Director Kevin Hassett shared that the White House is preparing a plan to prioritize tariff talks with key allies, such as South Korea and Japan. “We’ve got significant concessions on the table,” he said. “But ultimately, it’s up to the president to determine if the offers are strong enough to warrant a shift in tariff policy.”
Understanding Economic Terms
What is a Recession?
A recession is typically defined as two consecutive quarters of declining economic output. More formally, it involves a substantial downturn in economic activity lasting several months and is measured using indicators like employment, income, consumer spending, and industrial production. Recessions often result in widespread job losses and reduced economic confidence.
What is a Stock Market Correction?
A stock market correction occurs when a market index or individual stock falls by at least 10% from its recent high. This is less severe than a bear market, which involves a 20% or more decline. Corrections can impact all types of investments, including individual stocks, bonds, and major indexes such as the Dow Jones, S&P 500, and Nasdaq.
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