The imposition of new tariffs by Trump on imports from 185 countries, including China, prompted Beijing to quickly respond. China's Ministry of Finance stated in a statement that starting from April 10, a 34% tariff will be imposed on all imported goods from the US. These tariffs include American agricultural, industrial, and technological products, clearly indicating that China is prepared to retaliate in the trade war with the US. This action can cause significant harm to American exporters and put pressure on the US economy.
Sharp Decline in US Stock Market
The imposition of new tariffs by China quickly affected the US financial markets. After the announcement, major US stock market indices, including the Dow Jones and S&P 500, plummeted. The S&P 500 experienced a 2.7% decline, and the Dow Jones faced a 890-unit drop. These declines resulted in the loss of approximately $4 trillion in the value of the US stock market in one day. Investors, concerned about the escalation of the trade war and its impact on economic growth, moved towards selling stocks and purchasing safer assets such as US Treasury bonds.
Global Impacts and International Reactions
The imposition of new tariffs by Trump on 185 countries, particularly China, has put many global economies in a critical situation. European countries, Japan, and Canada, which are traditional US partners, have also been affected by these policies. The International Monetary Fund has warned that this trade war could lead to a decline in global economic growth and threaten the stability of financial markets.
Will this Economic War Continue?
Given the intensity of the tensions between China and the US, the future outlook of this tariff war remains uncertain. China has shown that it will not back down from US economic pressure and will take further retaliatory measures if necessary. On the other hand, Trump may continue to seek to increase pressure on China to reach a trade reform agreement. However, the question that remains is whether Trump will retreat from his positions or whether this economic war will reach a point of no return. The continuation of this trend could lead to a decline in investor confidence and a slowdown in global economic growth.
NOURNEWS