China has announced new tariffs of 84% on imports of all US goods, in a move that sent stock markets falling further and will raise fears of further escalation of Donald Trump’s trade war.
The Chinese ministry of finance said on Wednesday that it would impose 84% tariffs on US goods from Thursday, up from the 34% previously announced.
The decision came hours after new rates on imports to the US from dozens of economies rose further, with tariffs imposed on Chinese products since Trump returned to the White House reaching a staggering 104%.
China’s retaliation sent stock markets – which had slumped on Wednesday – falling further with major indices down in the UK, Germany, France and Spain. London’s FTSE 100 dropped by 3.5%, Germany’s Dax index fell by 3.8%, France’s Cac 40 was down by 3.9% and Spain’s Ibex 3.2%.
Before the announcement of the 84% tariffs, China’s government said it was unwilling to fight a trade war but “will never sit idly by and watch the legitimate rights and interests of the Chinese people be damaged and deprived”.
The global economy has been rocked since sweeping 10% US tariffs took effect over the weekend, prompting dramatic market sell-offs worldwide and sparking recession fears.
The falls in Europe followed another tumultuous day on some Asian markets. Japan’s Nikkei benchmark index closed down almost 4%, while Taiwan’s benchmark stock index was 5.8% lower. Hong Kong’s Hang Seng index recouped some earlier falls to close 0.4% down, and South Korea’s Kospi 200 index dropped by 1.8%.
However, China’s stock markets rose, appearing to weather the storm after government interventions. The SSE composite index in Shanghai ended the day 1.1% higher, while the Shenzhen SE composite rose 2.2%.
