China has strongly reacted to US President Donald Trump’s latest decision to raise tariffs on Chinese goods by 50%, calling it “blackmail” and vowing to fight back. This move has worsened the already ongoing global trade war.
The conflict began when Trump imposed 34% tariffs on Chinese products. China responded with the same, which led Trump to announce a further increase. China’s Commerce Ministry said the US is making a “mistake on top of a mistake” and warned it will “fight to the end” if provoked.
Global Markets React
This back-and-forth caused chaos in global financial markets:
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Japan’s Nikkei rebounded 6% after hitting a 1.5-year low.
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Hong Kong’s Hang Seng Index jumped 2% after its worst day since 1997.
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China’s stocks rose 0.7% after a major fall.
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Indonesian markets crashed, with stocks down 9% and the currency hitting a record low.
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US stock futures also looked better after a tough few days.
Europe’s Response
The European Union (EU) is also planning 25% counter-tariffs on US goods like soybeans, sausages, and nuts. They’re ready to discuss a “zero for zero” deal but are frustrated by existing US tariffs on cars and metals. More EU products could face 20% tariffs soon.
Business Community Worried
Top business leaders, including JPMorgan CEO Jamie Dimon and investor Bill Ackman, have warned that Trump’s trade policies could harm the economy badly — even calling it an “economic nuclear winter.”
Even Trump allies like Elon Musk suggested zero tariffs between the US and Europe, but Trump’s advisor Peter Navarro dismissed him as just a “car assembler.”
What Trump Says
Trump insists the tariffs are needed to protect American industry and reverse years of unfair trade. He believes no other president would dare to take these steps.
Fed May Cut Rates
Because of the risk of recession, investors are now expecting that the US Federal Reserve might cut interest rates soon — though its chief, Jerome Powell, hasn’t confirmed any plans.
In short, the US-China trade war is heating up, global markets are shaky, and political tensions are rising as countries push back against Trump’s aggressive tariff strategy.
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