China Expands Tariff Retaliation: 125% Tariffs on All US Imports Announced

The ongoing Tariff war between China and USA continues as China retaliates back by increasing the tariffs to 125% on all US imports. China on Friday announced that it will increase the Tariffs to 125%, following Trump’s implementation of sweeping tariffs.

The Tariff War: How did this start?

Trump on Liberation Day announced “sweeping” tariffs on April 2. The drastic decision affected Global Markets and also started a trade war with the trading countries.

Amongst the countries was China, which retaliated with a hike of 84% tariffs. China was also called “USA’s Biggest Abuser” by Trump; he also called out China for its “ridiculously high tariffs”. After Trump’s persistence and soaring tariffs, China increased the tariffs to 125% on all U.S. imports.

Trump has now announced a 90-day pause on the ongoing tariff war as countries start to retaliate. Canada also implemented tariffs on US, French President issued a warning to Trump, which is currently on hold.

The Market Crash

Waves of panic hit the global market after the tariff war, as Markets went down and suffered badly. The US Equity market also lost a whopping $6 trillion, and the value of Cryptocurrency also plummeted to $77,000.

However, the stock market shows positive signs as futures tied to the S&P 500 rose by 0.2%, Nasdaq by 0.3%, and Dow Jones by a flat line.

The Quarterly Earnings season of Big Wall Street, JPMorgan, and Wells Fargo was released, showing a slight rise in the stocks. JPMorgan CEO Jamie commented on the turmoil by saying, “The US economy is going through extreme turbulence.” Tesla’s stock fell by 0.2% after China’s tariff announcement.

The Market is being cautious, still recovering as investors are worried for the future. The 90-day pause may help to reduce the tension between countries and resolve the matter.