Global stocks have slumped further after China hit back at US import taxes with retaliatory tariffs of its own. The main US indexes opened down nearly 3% while European markets were about 4% lower, with some companies seeing double-digit falls in their share prices. The declines add to large falls seen on Thursday as markets continued to react to the uncertainty triggered by the US tariffs.
Traders are concerned the tariffs will increase prices and weigh on growth in the US and abroad. The news that China will add a 34% tariff on US goods from 10 April has increased fears of a drawn out trade war. China’s finance ministry says the US tariffs on Chinese products are “not in line with international trade rules”.
When the sweeping new tariffs were announced by US President Donald Trump on Thursday, China was hit with a 54% rate, which include previous duties already in place. That makes China one of the hardest-hit countries on America’s tariff list.
In the US, the tech-heavy Nasdaq opened down 2.8% on Friday, but it fell into what is known as “bear territory” – that is, it may close more than 20% lower than its recent peak in December. The Dow Jones was more than 2% lower while the S&P 500 fell nearly 3%.
Shares in tech giant Apple fell more than 3%, and have dropped 12.5% over two days. It outsources much of its production to China, which faces an aggregate 54% US tariff rate.
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