Tensions Escalate as China and U.S. Exchange Punishing Tariffs

China is escalating its trade war with the U.S. by imposing tariffs of 84% on American goods. This move responds to President Trump's earlier imposition of 104% tariffs on Chinese imports. Economic instability looms as global markets react negatively, affecting stocks, bonds, and currencies worldwide.

In a significant development in the ongoing trade war, China announced it will impose 84% tariffs on U.S. goods, escalating tensions with the American administration under President Donald Trump. This decision comes on the heels of Trump's reciprocal tariffs, including 104% duties on Chinese goods, instituted earlier the same day.

Global markets reeled as the new tariffs took effect, destabilizing longstanding trade structures and causing fears of an impending recession. Major U.S. companies, particularly banks, faced substantial losses, further fueled by a downturn in oil prices and pressure on emerging markets.

China's latest move, accompanied by a strong statement to the World Trade Organization, emphasizes their readiness to continue countermeasures. Meanwhile, mixed signals from the White House added to market uncertainty as the international community including the EU prepared responses to the escalating tariffs.

(With inputs from agencies.)