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China escalated the stakes of the trade war with America by imposing an 84% tariff on American products as a retaliatory measure to President Trump's recent tariffs on Chinese products. The retaliatory tariff which commenced on April 10, 2025, is a significant escalation of the trade tension between the two economic giants. China's move indicates a show of its resolve to ignore what it perceives to be coercive American trade policies.
The deepening trade war has led market volatility to a record globally, and blue-chip stock market indices like the S&P 500 plunged dramatically. Reacting, China will convene a high-level meeting to weigh alternatives to spur its economy and capital markets, including financing local consumption and overseas exports. The dispute threatens to badly damage the world's economic stability and investors desire even more economic uncertainty as the trade war escalates.
