Global Trade Upheaval: China Strikes Back with Aggressive Tariffs

China hits the U.S. with 34% tariffs, heightening global trade tensions amid fears of recession. Retaliation involves rare earths export controls and more entities on an 'unreliable' list. Market reactions are intense, prompting mixed responses from global economies and warnings of severe economic consequences.

China has announced a formidable 34% increase in tariffs on U.S. goods, marking a significant escalation in the ongoing trade conflict with the Trump administration. This move has intensified concerns about an impending recession and precipitated a sharp decline in the global stock market.

As part of its retaliatory actions, Beijing is also implementing export controls on certain rare earth elements and has added 11 firms to its 'unreliable entity' list. These companies are primarily linked to arms dealings with Taiwan, a territory China claims as its own.

In response to the trade war, investment bank JP Morgan has raised the likelihood of a global recession to 60% by the end of the year. The impact on U.S. stock futures was immediate, with a predicted continuation of losses on Wall Street following China's recent tariff announcements.

(With inputs from agencies.)