China Hits Back with Tariffs as Trade Tensions Rise

China announced a 34% tariff on all U.S. imports, effective April 10, in direct response to the U.S. increasing tariffs on Chinese goods earlier this week. This mirrors the move made by former President Donald Trump, who raised tariffs on Chinese imports to a total of 54%.

Alongside the tariffs, China has taken other actions, including filing a complaint with the World Trade Organization, restricting exports of rare earth minerals, and launching an anti-dumping probe into American and Indian X-ray tubes.

The back-and-forth has rattled markets, with the Dow dropping over 2,000 points—its sharpest decline in years. Federal Reserve Chair Jerome Powell warned the tariffs could drive up inflation and slow the economy.

Despite the market reaction, Trump doubled down, saying his trade policies won’t change and urging investors to stay confident. No new talks between the U.S. and China have been announced, leaving global markets on edge.