Global Economic Turmoil: China Strikes Back in Trade Showdown

The U.S.-China trade war escalates as China imposes an additional 34% tariff on U.S. goods, raising fears of a global recession. Both nations are digging in their heels, with China also enacting export controls on rare earths. The resulting market turbulence has prompted widespread concern.

China ramped up the trade war with the United States by levying an additional 34% tariff on American goods, deepening fears of a worldwide economic slowdown. Both nations are locked in a standoff, with Beijing also imposing controls on rare earth exports.

This escalation has spurred a substantial decline in global stock markets, with investment bank JP Morgan now predicting a 60% chance of recession by year-end. President Trump remains defiant amid market unrest, promoting U.S. investment as a lucrative opportunity.

The trade conflict's impact extends globally, affecting countries like Canada and Japan. While some European nations hesitate to retaliate, others, led by France, are considering steps to counter U.S. tariffs, despite market volatility threatening increased consumer prices.

(With inputs from agencies.)