The ongoing trade war between the US and China took a dramatic turn as the White House confirmed that tariffs on Chinese goods would be raised to a staggering 145%. This announcement came just a day after President Donald Trump initially stated that the levy would be increased to 125%.
The clarification from the administration revealed that the 125% figure did not include a pre-existing tariff of 20% that had been imposed on countries believed to be producing the drug fentanyl. The decision to raise tariffs even further has sent shockwaves through global markets.
While European and Asian markets saw gains on Thursday, US shares plummeted as soon as the market opened. The Dow Jones and S&P 500 indexes were down over 4%, with the Nasdaq experiencing a 5% decrease. This significant drop in American markets highlights the potential far-reaching consequences of the escalating trade tensions between the world’s two largest economies.
Investors and analysts alike are closely watching the developments in the US-China trade dispute, as the impact on global trade and economic stability remains uncertain. The increased tariffs are likely to have ripple effects across various industries and could further strain relations between the two countries.
The White House’s decision to raise tariffs to 145% underscores the challenges and complexities of navigating the current trade landscape. As both sides continue to engage in tit-for-tat measures, the future of US-China trade relations remains uncertain.
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