In response to the Donald Trump administration’s tough stance on America’s trade partners, China on Wednesday raised its tariffs on its imports from the US all the way to 84 per cent from 34 per cent. The new Chinese duty on American goods will come into force from April 10.
Here are key things to know about this development:
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With its action, China has matched additional tariffs imposed by Trump earlier on Wednesday, adding fuel to the fire amid investors already on their toes since his April 2 announcements that attracted retaliatory action from America’s trade partners such as the world’s second largest economy.
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China has brought 12 US companies to its ‘export control’ list, and another six firms to its ‘unreliable’ list.
- The news immediately sent Dow futures and crude oil rates plunging.
- At 7:04 am Eastern Time (5:44 pm in India), Dow futures were seen trading 766 points, or 2.0 per cent, lower at 37,096, having fallen as much as 980 points to 36,882 earlier on Wednesday.
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- Extending losses to a fifth straight session, oil rates plunged more than 3.0 per cent to their lowest intraday levels in more than four years.
- Both benchmarks—Brent and WTI futures—were near $60 and $57.5 a barrel at the last count.
- On April 2, US President Donald Trump slapped a number of what he described as “kind reciprocal tariffs” on a number of nations, announcing a 34 per cent levy on China.
- China immediately retaliated with an equal 34 per cent duty on imports from China.
ALSO READ: 104% on China, 26% on India: Donald Trump’s tariffs take effect; India among worst hit
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In Trump’s “Liberation Day” announcements on April 2, China was the hardest-hit nation with a duty amounting to 104 per cent. Since then, both economic superpowers have locked horns in a fierce tit-for-tat trade battle.
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In March, China already took a host of steps to boost its domestic consumption in anticipation of incoming action from the Trump administration.
