Beijing, China – In response to President Trump’s tariffs, China has retaliated by imposing its own taxes and export restrictions. The escalating trade war between the two economic giants has caused turmoil in global markets, with stocks plunging as tensions rise.

China announced a 34% retaliatory tariff on all goods imported from the United States, a significant move that is expected to have serious implications for businesses and consumers in both countries. This retaliatory measure is seen as a direct response to Trump’s aggressive trade policies, particularly his recent tariffs on Chinese imports.

The new tariffs from China have further intensified the trade war, leading to uncertainty and volatility in the financial markets. The Dow futures fell by 3% following China’s announcement, underscoring the negative impact of the escalating tensions on investor confidence and market stability.

In addition to tariffs, China has also imposed export controls on rare earth elements, a critical move that could have far-reaching consequences for industries reliant on these materials. Rare earth elements are essential components in various high-tech products, including smartphones, electric vehicles, and defense systems.

The tit-for-tat actions between the United States and China have raised concerns about the long-term effects of the trade war on the global economy. As both countries continue to exchange blows through tariffs and export restrictions, businesses are bracing for the impact on supply chains, production costs, and consumer prices.

Experts warn that the escalation of the trade war could lead to a broader economic downturn, affecting not only the US and China but also countries around the world. The uncertainty stemming from the ongoing trade tensions has already contributed to market volatility and could potentially hinder global economic growth in the coming months.