U.S. stock markets tumbled after the White House officially clarified that total tariffs on Chinese imports have now reached 145%, intensifying fears of a renewed trade war. This includes a 125% hike on top of an existing 20% tariff, initially imposed over China’s alleged links to the fentanyl crisis.
Following the announcement, the S&P 500 dropped 3.6%, the Dow Jones fell 2.5%, and the Nasdaq sank 4.3%. Tech giants like Apple, Tesla, Meta, and Microsoft saw significant losses as investor confidence wavered. The move sparked immediate backlash from economic experts and former officials, including former Treasury Secretary Janet Yellen, who called the tariff hike a “self-inflicted wound.”
China quickly responded with its own countermeasure, announcing an 84% tariff on American goods, escalating tensions between the two largest economies in the world.
Analysts warn that the trade standoff could disrupt supply chains, drive up prices for consumers, and hit key sectors such as agriculture and manufacturing. With markets on edge and political pressure mounting, the long-term impact of this tariff war remains uncertain—but investors are already feeling the shock. As one analyst put it, “Markets don’t lie.”
