China hits back with 34% tariff on U.S.; stocks plunge, global markets in turmoil

Trade tensions between the U.S. and China have reached a new peak, with both nations taking drastic steps that threaten to reshape global commerce.

On Friday, China announced that it will impose a 34% tariff on all U.S. imports, starting next week.

Stock markets tumbled following the announcement.

Our Kim Jung-sil reports.

In a dramatic escalation of the ongoing trade dispute, China has retaliated against the U.S. with a hefty 34% tariff on all U.S. imports.

"The Customs Tariff Commission of the State Council announced on Friday that China will impose an additional 34% tariffs on all products imported from the United States starting from (12:01) April 10th."

The move comes just days after U.S. President Donald Trump unveiled 54% tariffs on all Chinese imports.

The new tariffs have sent shockwaves through global markets.

In the U.S., all three major stock indexes plummeted, with the Dow Jones falling by 5.5% and the S&P 500 dropping nearly 6%, capping the worst week since 2020.

Despite increased demand for safe-haven assets, gold prices also fell nearly 3%.

Analysts suggest that the recent market crashes have left investors with liquidity shortages, prompting them to liquidate gold holdings to cover margin calls.

"It's an economic Armageddon that was unleashed by Trump. And the tariff war has begun, and we believe this could set tech stocks and the tech industry in the U.S. back potentially a decade."

Analysts warn that the economic consequences of the trade war could be severe, particularly for U.S. tech companies reliant on Asian supply chains.

Professor Yang Jun-sok, an economics expert at The Catholic University of Korea, says China is directly challenging President Trump, arguing that once tariffs exceed a certain level, China faces little risk, but it has rattled American investors.

"It'll be a big question whether the European Union and Canada will join China in retaliation. If they do, then President Trump may have no choice but to back down from his high tariff policy."

As stock markets continue to tumble, all eyes are on whether China's latest move will prompt President Trump to reconsider his aggressive tariff policies.

Kim Jung-sil, Arirang News.