China Retaliates Against Trump’s Tariffs: Global Recession Fears Mount. By Nwabueze Benard. April 4, 2025
### **China Strikes Back with 34% Tariffs**
In a sharp response to Trump’s latest trade measures, Beijing imposed **34% additional tariffs** on all U.S. imports, mirroring Washington’s move and intensifying fears of a full-blown trade war. The decision comes just days after Trump announced **54% total tariffs** on Chinese goods—a combination of existing and new levies—alongside steep duties on Vietnam, Cambodia, and Thailand, which serve as key transit points for Chinese exports.
China’s State Council Tariff Commission condemned the U.S. move as **“unilateral bullying”** and a violation of international trade rules. Meanwhile, Trump fired back on Truth Social, declaring:
> **“CHINA PLAYED IT WRONG, THEY PANICKED – THE ONE THING THEY CANNOT AFFORD TO DO!”**
### **Markets in Freefall**
The escalating conflict has triggered a **global stock sell-off**, with nearly **$5 trillion wiped off markets** since Trump’s initial tariff announcement. Key indices have plunged:
- **FTSE 100 (UK):** Down **7%** this week—its worst performance since the early days of the COVID-19 pandemic.
- **Nasdaq (U.S.):** Entered **bear market territory**, dropping **5.8%** in a single day.
- **S&P 500:** Suffered its **worst five-day decline since March 2020**, falling **9.1%**.
Oil prices also tumbled, with **Brent crude dropping 7%** to around **$65 a barrel**, as investors reassessed global growth prospects.
### **Warnings from Economists & Institutions**
- **Federal Reserve Chair Jerome Powell** warned that Trump’s tariffs could lead to **“higher inflation and slower growth.”**
- **IMF Managing Director Kristalina Georgieva** called for de-escalation, stating that the tariffs pose a **“significant risk to the global outlook.”**
- **JP Morgan** now sees a **60% chance of a global recession** by year-end, up from 40%.
### **Political Fallout**
The UK, facing **10% tariffs on its exports**, is scrambling to negotiate exemptions. Chancellor **Rachel Reeves** hinted at concessions, including **reducing the digital services tax** on major tech firms.
Meanwhile, Trump’s allies downplayed the market chaos. U.S. Secretary of State **Marco Rubio** claimed:
> **“Markets are crashing because markets are based on the stock value of companies who today are embedded in modes of production that are bad for the U.S.”**
### **What’s Next?**
With neither side backing down, the world economy faces **rising prices, disrupted supply chains, and slower growth**. The question now is whether negotiations can avert a deeper crisis—or if this marks the start of a prolonged economic standoff.
**Stay tuned for updates as this story develops.**
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**What do you think? Will the U.S. and China reach a deal, or is a global recession inevitable? Share your thoughts in the comments.**
*(This blog post is inspired by recent events reported by **The Guardian** and other financial news outlets.)*
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