Recent economic measures by the US under Donald Trump have triggered a negative response from China. President Xi Jinping labeled Trump as a 'bully' and confirmed readiness for retaliatory actions.
China's Response to US Tariffs
The Chinese government condemned the new US tariffs on its exports as a violation of trade laws. In response, Beijing announced a 34% tariff on all American goods entering the country starting April 10. The government statement emphasized that the tariff increase would not be reduced or canceled under any tax exemption programs.
Market Reactions
The new economic restrictions caused a sharp decline in the stock markets. Futures for the Dow Jones and S&P 500 fell by 2.2% and 2.3% respectively. European companies were also affected, with the Stoxx 600 index dropping by 4.5%. The banking sector faced significant challenges, with a 9.5% decline reported.
Impact on the Tech Sector and Predictions
The tech sector was hit the hardest. The Magnificent Seven index, composed of seven major tech companies, lost over 6% in a single day. In total, the market saw a loss of over $1 trillion. Investors are now looking ahead to the March jobs report, which could affect market stability.
The conflict between the US and China continues to escalate, impacting global financial markets. The future of the economic relationship between the two countries remains uncertain.
