China will impose tariffs of 84 percent to US assets as of Thursday, compared to the 34pc announced previously, his Ministry of Finance said on Wednesday, saying goodbye to the last save in a global commercial war caused by the president of the United States, Donald Trump.
Trump’s “reciprocal” tariffs in dozens of countries entered into force today, including massive 104pc tasks in Chinese products. The European Union is also preparing its own retaliation measures for later today.
Trump’s punishing rates, which says they aim to put an end to US commercial deficits with many countries, have overturned a global commercial order for decades, which increases the fears of recession and clean billions of the market value of the main companies.
Global markets beaten today when the striking rates of 104 percent Trump over China, and a wild sale in American bonds caused fears that foreign funds were fleeing from US assets.
Secretary of the United States Treasury, Scott Besent, in an interview with Fox Business NetworkHe said that China’s new tariffs were unfortunate.
“They have the most unbalanced economy in the history of the modern world, and I can tell him that this climb is a loser for them,” he said.
This week has already brought the volatility of the crisis era to the markets, cleaning billions of the value of shares and hammering emerging products and markets.
The actions of the banks of the great US banks fell before the market, extending tariff -induced losses after China announced their tariffs of 84 percent over US goods. Oil prices extended their minimum of four years.
“The United States and China are trapped in an unprecedented and expensive chicken game, and it seems that both parties are not willing to go back,” said Ting Lu, Chinese chief economist in Nomura.
Trump had almost doubled tariffs on Chinese imports, which had settled in 54pc last week, in response to the previous counter-tarifa of Beijing.
The White House did not have immediate comments on the last reprisal movement of China.
Today early, China called its commercial surplus with the United States an inevitability and warned that it had “determination and media” to continue the fight if Trump continued to hit Chinese products.
China’s currency has faced strong descending pressure, with Yuan in the high seas in minimum records due to rates. But Fuentes said Reuters that the Central Bank has asked the main state banks to reduce American purchases and would not allow acute yuan decreases.
Meanwhile, China told the World Trade Organization (WTO) that American tariffs threatened to further destabilize global trade.
“The situation has intensified dangerously … as one of the affected members, China expresses serious concern and a firm opposition to this reckless movement,” China said in a statement to the WTO based in Geneva that was sent today to Reuters For the Chinese mission to the WTO.
Market route
Since Trump released his tariffs on April 2, the S&P 500 has suffered his deepest loss since the creation of the reference point in the 1950s. Now he is approaching a bearish market, defined as 20pc below his most recent.
The US Treasury Bonds. UU. Also updated in market agitation and strong losses today in a sign of investors are even throwing their safest assets, and the dollar, a traditional safe shelter, was weaker against other important currencies.
The European actions fell and the futures of the United States actions pointed to more pain ahead, after a gloomy session for most of Asia.
Trump has shrunk from the defeat of the market and offered investors mixed signals about whether the tariffs will remain in the long term, describing them as “permanent”, but they also boast that they are pressing other leaders to request negotiations.
The countries of the European Union are expected to approve the first countermeasures of the block against the alluvion of Trump rates today, joining China and Canada to delay.
The European Commission, which coordinates the EU commercial policy, has proposed additional tariff Reuters.
They must go into force in stages.
China looks for the economy ‘rates proof’ as the commercial war deems
China is trying to boost its economy by promoting consumption and investing in key industries, but analysts say that it is still critically vulnerable to the economic storm caused by the taxes of Trump’s 104PC on their goods.
Beijing has promised “fight until the end” against Trump’s aggressive commercial policy, with leader number two Li Qiang saying that the authorities were “totally safe” in the resistance of the Chinese economy.
But even before the tariffs were reached, the weakness in the domestic market after the COVID, the increase in unemployment and a long -term real estate crisis had damping consumption.
“The Chinese economy has weakened significantly since Trump’s first mandate and cannot resist the impact of sustained high rates,” said Henry Gao, an expert in the Chinese economy and international commercial law.
Shipments abroad represented a rare bright point last year, with the United States as the main buyer of Chinese products in a single country. The US figures put Chinese exports to the US at around $ 440 billion in 2024, almost three times imports worth $ 145 billion.
Machinery and electronics, as well as textiles, footwear, furniture and toys, constitute the majority of the goods sent, and an excess of supply could squeeze national consumption markets already full of people.
Although China’s domestic market is stronger now than in Trump’s previous term, there would be inevitably pain ahead, Tang Yao said of the Guanghua School of Administration of the University of Beijing.
“Certain products are specifically designed for US or European markets, so efforts to redirect national consumers will only have a limited effect,” he said.
‘Strategic opportunity’
However, a weekend editorial in the Communist Party supported People’s Daily He described tariffs as a “strategic opportunity” so that China cement consumption is the main driver of economic growth.
We must “turn the pressure into motivation,” he said.
Beijing has been trying to “reformulate structural external pressure as a catalyst for long -standing reforms,” Lizzi Lee said of the center of the Asia Society Institute for China’s analysis. The authorities are “projecting confidence,” he said.
China’s rapid and coordinated response to rates reflects the lessons learned from the Trump’s first term, he added.
For example, in addition to preparing reciprocal tariffs on US goods that will enter into force on Thursday, the Beijing Ministry of Commerce on the same day announced export controls in seven rare earth elements, including those used in magnetic and electronic consumption images.
Beijing’s response to any additional escalation can no longer be limited to Tit’s tax by eye, since China is “refining her reprisal approach,” Lee said.
Since Trump’s first mandate, China has diversified and fortified relations with countries in Europe, Africa, Southeast Asia and Latin America, as well as in South Korea and Japan.
Beijing could also expand government support to the private sector since businessmen return to good thanks to President Xi Jinping, added Raymond Yeung of Anz.
China’s leaders have been trying to promote domestic self -sufficiency in technology for some time, offering explicit support and reinforcing supply chains in key areas such as AI and chips.
Trump has insisted that the ball was on the court of China, saying that Beijing “wants to make a deal, bad, but they don’t know how to start.”
On Tuesday, Trump also said that the United States would announce an important rate about “very short” pharmaceutical products.
Separately, Canada said that its tariffs on certain imports of cars in the United States will enter into force today.
‘There is no real protection’
While this time Beijing has more experience with Trump, “it does not mean that the Chinese economy can easily shake the effects of very high rates,” said Frederic Neumann, chief economist of Asia of HSBC.
The authorities will seek to quickly compensate for the fall in demand for Chinese products, he said.
That might seem exchange schemes or more consumer subsidies that facilitate Chinese buyers to buy common domestic items, from water purifiers to electric vehicles.
“By creating demand and trade opportunities for China’s partners in Asia and Europe, the country could help underpin what is left of the Global Liberal Commercial Order,” said Neumann.
But if Beijing can do that yet it has not been seen.
The government “has been very reluctant to introduce a stimulus of real consumption, so there is low confidence in the so -called consumption reinforcement measures,” Gao said. “I don’t think China has any real protection against a commercial war,” he added.
Success also goes beyond words and finally depends on Beijing’s ability to offer the long -awaited consumption impulse, Neumann warned by HSBC.
“This is the moment of China to confiscate the economic leadership of the world,” he said. “But that leadership will only occur if domestic demand is bouncing and fills the void left by an absent us.”
