US stock futures saw a volatile session on Wednesday after China released a White Paper urging dialogue with the United States to resolve escalating trade tensions. Dow futures, which had earlier plummeted by nearly 900 points, trimmed losses significantly and briefly turned positive before settling near the flat line. At last count, Dow futures were down 550 points, while the S&P 500 and Nasdaq futures were trading 80 and 230 points lower, respectively.
The recovery comes in the backdrop of mounting global trade worries after the US imposed sweeping reciprocal tariffs, including a staggering 104% levy on Chinese goods, following a 50% hike announced last week by President Donald Trump. In response, China had earlier announced a 34% retaliatory tariff set to take effect on April 10.
Despite reiterating that it would “fight till the end,” China’s newly released White Paper emphasized a preference for dialogue and mutual cooperation. Key excerpts from the White Paper included statements that unilateral and bullying measures by the US would not resolve its economic issues. China asserted that the essence of US-China trade ties remains mutually beneficial and win-win in nature.
China also stated that it has “abundant means for countermeasures” but maintained that it is open to resolving differences through negotiation based on equality and mutual respect. Meanwhile, Canada imposed a 25% retaliatory tariff on auto imports from the US, adding further complexity to the global trade environment.
The escalating tensions have also weighed on European markets, which opened lower, while Asian currencies slipped to record lows earlier in the day.
This is a developing story…
