The US stock market continues to experience significant turbulence as Dow futures drop by over 800 points after China retaliated with a 34% tariff on all US goods. This move follows US President Donald Trump’s reciprocal tariffs on Chinese imports, intensifying global trade tensions.
Key Market Movements:
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S&P 500 futures are down over 120 points, reflecting growing investor concerns over escalating trade conflicts.
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Nasdaq futures are also in the red, down by 400 points, as tech stocks take a hit from the new tariff announcements.
China’s Response to US Tariffs:
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China’s State Council Tariff Commission announced on Friday that it would impose a 34% tariff on all US goods starting April 10, 2025. This tariff is a direct retaliation against the US’s 34% tariff on Chinese goods, raising the total tariff rate on Chinese imports to 54%.
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The tariff applies to goods imported after April 10, 2025, and any goods already shipped before this date will be exempt from the additional levy, provided they are imported between April 10 and May 13, 2025.
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The new tariffs come on top of the 20% tariffs already in place, creating a more challenging environment for international trade.
This escalating trade war is further increasing fears of a potential global recession, and investors are bracing for the economic implications of these tariff hikes.
Market Impact:
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The Dow, already struggling from Trump’s tariff plan, saw futures extend losses, now down over 600 points following the Chinese retaliation.
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This development is particularly troubling for sectors heavily reliant on international trade, such as technology, retail, and automotive.
Disclaimer:
The information provided is for informational purposes only and should not be considered financial or investment advice. Stock market investments are subject to market risks. Please consult your financial advisor before making any investment decisions.
