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The global stock markets have collapsed again after China confirmed that it would retaliate against President Donald Trump with additional 34 percent tariffs on US goods, increasing a commercial war that has caused investors and fed the fear of an upcoming recession.
Wall Street was abruptly reduced on Friday after the Chinese response, which will be imposed from April 10, after the radical taxes of the Trump administration brought $ 4 billion ($ us2.4 billion) of US actions.
Trump said the answer showed that Beijing had “panic” after his administration announced a new 34% tax on Chinese products last week, in addition to an existing 20% duty in all imports from China.
The Prime Minister of the United Kingdom, Keir Starmer, called on Friday to Prime Minister Anthony Albanese and the Prime Minister of Italy, Giorgia Meloni, to discuss the potential consequences of the intensifying confrontation between the two largest economies in the world.
“Everyone agreed that a total commercial war would be extremely harmful and is not of anyone’s interest, while agreeing to keep in close contact in the next few days,” said a spokesman for the Starmer’s office.
The new measures also saw 11 American bodies added to the “List of unreliable entities” of China, which allows it to impose punitive actions against foreign entities, including companies linked to weapons sales to Taiwan, an autonomous island, which China affirms as part of its territory.
The Tit For Tat occurs after Trump declared a 10 percent basal tax on imports from all countries, as well as higher tariff rates in dozens of nations that direct commercial surpluses with the United States.
Canada, who is the largest commercial partner in the United States, has said that he is preparing to attack the United States with retaliation rates, after a Trump administration movement to increase taxes on Canadian goods at its highest level in more than a century.
Experts have warned that the new commercial climate, which is a marked deviation from some of the most friendly campaign promises for Trump business, could continue to shake the markets.
The JP Morgan investment bank said it sees a 60 percent probability of the global economy from entering the recession at the end of the year, compared to 40 percent before.
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