China announced a 34% tariff on all imports from the United States, effective from April 10, according to the official Xinhua News Agency.
China’s decision comes in response to a similar 34% tariff imposed by the United States on Chinese goods, escalating the ongoing tariff war between the two nations.
U.S. and European markets hit the lowest point in Friday’s trading sessions following the report. At 10:28GMT (06:28ET), STOXX 600 was down 4.5% while the S&P 500 Futures extended decline to 2.2%.
Similarly, U.S.-listed Chinese shares fell, with Alibaba Group Holdings Ltd ADR (NYSE:BABA) dropping as much as 7.7% in premarket trade, PDD Holdings Inc DRC (NASDAQ:PDD) fell 6.2%, Baidu Inc (NASDAQ:BIDU) is down 5% while JD.com Inc Adr (NASDAQ:JD) saw its stock trade 6% lower.
President Trump, speaking at the White House on Thursday, reiterated his commitment to this strategy, which aims to overturn decades of U.S.-led trade liberalization that has shaped the global trade order.
"I think it’s going very well," he commented.
Trump likened the process to a surgical operation on a patient, stating, "It was an operation like when a patient gets operated on, and it’s a big thing. I said this would exactly be the way it is."
He further predicted that the markets, stocks, and the country will experience a boom.