The United States announced it would increase tariffs on Chinese goods by an extra 50%. This is on top of an already high 34% tariff that was revealed earlier. The new tariffs are set to start on April 9 if China does not back down from its own tax plans on American imports. This bold step was made public by the US President, who claimed China was being unfair in trade. He accused them of using tricks like giving secret help to its companies and changing its money value on purpose.
The US President also warned that all talks with China would stop if they went ahead with their tariffs. He added that meetings with other countries would now be given more attention. He used strong language on social media to blame China for hurting American businesses with unfair trade actions.
These announcements created a shock in the world economy. Stock markets all over the globe fell sharply. The Dow Jones in the US dropped by more than 17% from its top point. The Nasdaq index had already entered a bear market, which means it lost more than 20% of its value. Fear of a recession grew among investors and businesses, especially after the US also raised tariffs on other countries, including India.
Volvo Increases Car Making In US After Harsh Tariffs
China Hits Back with Firm Actions
China did not stay quiet. The Chinese government quickly responded, saying they would not be bullied. They called the US actions “tariff blackmail” and “a mistake on top of a mistake.” Their commerce ministry made it clear that they will take strong steps to protect the country’s rights.
Starting April 10, China will also charge an extra 34% tariff on US goods. This means American companies trying to sell their products in China will have to pay more taxes, making their goods more expensive for Chinese buyers.
In addition to tariffs, China announced export controls on key rare-earth elements. These materials—like samarium, dysprosium, and gadolinium—are used in many modern technologies, including smartphones, electric cars, and military equipment. China produces most of the world’s rare-earth supply, so this move could have a serious impact on global industries. These new controls began on April 4.
A strong message was sent by China’s state-owned media, which said that the US was misusing its power and breaking global trade rules. They called the US tariffs a way to scare other countries into following unfair demands. The media added that China is fully ready to fight back to protect its people and its economy.
Over 50 Nations React to Aggressive Tariffs with Urgent Talks
Global Markets Shaken by Trade War Tensions
The growing fight between the world’s two biggest economies has made investors nervous. Stock markets around the world are tumbling as the trade war heats up. The Hang Seng Tech Index in China fell by a huge 27% in just one month. It erased all the gains it made earlier in the year. Chinese money, called the yuan, also lost value and hit its lowest level since January.
Meanwhile, in the bond market, prices went up sharply as investors rushed to safer places to keep their money. Bonds usually rise when people are worried about the economy.
This deepening trade war is not just about tariffs. It is affecting businesses, workers, and prices in both countries and beyond. With both sides showing no signs of giving in, the standoff is becoming more intense by the day.
From new taxes to rare-earth controls, each side is taking big steps to show they are serious. The world is watching closely as this economic fight between giants continues to unfold.
