Global Market Mayhem: China Retaliates With Tariffs Against U.S.

Global stock markets tumbled as China hit back at U.S. tariffs, escalating a trade war that stirred fears of a recession. China's response led to a sharp decline in Wall Street indices and included additional export controls. The trade tensions raised concerns over inflation and economic growth.

Global stock markets experienced significant plunges on Friday following China's announcement of retaliatory tariffs on U.S. goods. The move by Beijing, part of an intensifying trade war with the United States, has heightened investor concerns about a potential global recession.

The U.S. stock market suffered substantial losses, with the S&P 500 falling by 5.4%, Nasdaq dropping 5.3%, and the Dow Jones Industrial Average decreasing by 4.9%. In addition, China's control over rare earth exports and its addition of American firms to an 'unreliable entity' list added fuel to the already tense economic standoff.

Other countries have also prepared for retaliation amid raised U.S. tariff barriers, while financial markets continue to reel under the strain. Analysts have pushed up the probability of a global recession, citing reduced business confidence and more rigid market conditions.

(With inputs from agencies.)