Following China’s retaliatory tariff imposition, the US stock market has experienced significant turmoil, with shareholders facing heightened uncertainty.
On Friday, April 4, US stock exchanges endured a catastrophic day, with major indexes plummeting nearly 6%. This followed President Donald Trump’s announcement of a 34% tariff on Chinese goods, to which China responded with its own countermeasures, causing US stock indices to drop sharply. According to NBC News, the broad-based S&P 500 index fell by 6%, the tech-heavy Nasdaq dropped 5.8%, and the Dow Jones Industrial Average saw a loss of over 2,200 points, or approximately 5.5%. The Russell 2000, tracking smaller US companies, saw a 4% decline.
This marked the second consecutive day of market instability, with Thursday witnessing one of the worst days for the S&P 500 since the early stages of the COVID-19 pandemic.
China has announced that, starting April 10, it will impose a 34% tariff on all US goods, along with export controls on certain rare items imported from the US. Analysts warn that this decision could escalate the trade war and impact global markets.
Earlier, Trump had declared a 34% tariff on Chinese goods, which added to the existing 20% tariff, bringing the total to 54%. In response, China had already imposed a 15% tariff on US coal and liquefied natural gas (LNG), which has now been increased by an additional 34%.
Trump reacted to China’s move by posting on his social media platform, Truth Social, claiming that China is in panic and has no capacity to continue this trade war.
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