Global stock markets plunged after China retaliated against recent U.S. tariff hikes with a sweeping 34% duty on all American imports. The move follows President Donald Trump’s decision to raise tariffs on Chinese goods by 54%, escalating the ongoing trade war to new heights.
Markets responded sharply to the news, with the S&P 500 dropping 6%, the Dow Jones Industrial Average losing 5.5%, and the Nasdaq falling into bear market territory with a decline exceeding 20%. The global sell-off has wiped out an estimated $5 trillion in market value.
The technology sector bore the brunt of the losses, as major firms like Apple, Tesla, and Nvidia—heavily reliant on Chinese supply chains and consumers—suffered steep declines.
Amid growing concerns about a potential global recession, former Goldman Sachs CEO Lloyd Blankfein urged the White House to delay the additional tariffs for six months to allow for renewed negotiations. He proposed maintaining the existing 10% base tariff while postponing the harsher measures.
Meanwhile, the International Monetary Fund and Federal Reserve Chair Jerome Powell expressed alarm at the economic implications, warning that the tariff escalation could trigger inflation and stall global growth. JP Morgan analysts have now raised the chance of a global recession this year to 60%.
With tensions rising and investor confidence shaken, the world awaits the next move in this high-stakes economic standoff.
