Intel stock spikes after report of possible US government stake
Investing.com-- China’s 84% retaliatory tariffs on the U.S. took effect from midday, Chinese time, on Thursday, marking an escalation in a steadily worsening trade war with the United States.
China’s 84% tariffs on U.S. goods went into effect from 12:01 CST (04:00 GMT), several local media outlets reported. This came just as U.S. President Donald Trump’s increased 125% tariffs on China took effect.
China had largely decried Trump’s increased tariffs, and had vowed dire retaliation for the new duties. Beijing was also excluded from Trump’s 90-day exemption for countries targeted by his so-called reciprocal tariffs.
China’s 84% tariffs were in response to Trump initially imposing 104% tariffs on the country. But the U.S. president hiked this figure to 125% on Wednesday, criticizing Beijing’s retaliatory measures.
China has so far borne the brunt of increased trade tariffs in Trump’s second term as President. Trump had in March imposed 20% tariffs on the country.
Beijing has so far shown no signs of backing down, and has warned of a bitter trade war with the United States. China’s Commerce Ministry said the country was prepared to “fight to the end.”
Softer-than-expected Chinese inflation data for March showed that U.S. trade duties were already chipping away at the world’s second-largest economy.
But China is expected to bring forward plans for more stimulus, and is also expected to dole out even more fiscal and monetary support to offset the impact of Trump’s tariffs.
Chinese stock markets trimmed some gains, while U.S. stock index futures turned negative in Asian trade after Thursday’s tariffs took effect.
The Chinese yuan weakened sharply in recent sessions, and touched its weakest level in 17 years on Thursday.