Global markets crash! Dow futures tank 2% as China slaps fresh tariffs on US; UK’s FTSE tumbles 4%
Global markets crash: Dow Jones Futures on Wednesday, April 9, tanked more than 2 per cent ahead of the US stock market open as China announced its move to increase its additional tariffs to 84 per cent.
On Wednesday, China announced that it would raise the additional tariffs on all goods imported from the United States to 84 per cent, effective Thursday, April 10, in retaliation for US President Donald Trump’s 104 per cent tariff announcement.
“If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” said China’s Commerce Ministry in an official statement.
Dow Futures dropped more than 2 per cent to 36,818.79 points after China’s fresh tariffs announcement, compared to 37,577.14 points levels before the development.
Global Market Crash
Global markets also crashed on the additional tariff announcement on Wednesday, with the European markets taking a hit ahead of the Wall Street open as investors fear an escalating trade war between US and China.
UK’s FTSE 100 index crashed nearly 4 per cent to 7,603.25 points at 12:44 p.m. (BST) after China’s announcement, compared to 7,910.53 points at the previous stock market close.
The DAX index in Germany lost more than 4 per cent. As of 2:36 p.m. (CEDT), it was trading at 19,453.56 points, compared to 20,280.26 points at the previous market close.
The CAC 40 index in Paris also tanked nearly 4 per cent and is currently trading at 6,825.79 points as of 2:46 p.m. (CEDT), compared to 7,100.42 points in the previous close.
US vs China Tariff War
United States’ tariff war with China started when US President Donald Trump announced ‘reciprocal tariffs’ on nations, including China, on April 2, ‘Liberation Day.’
China, on Friday, April 4. retaliated to the move by imposing 34 per cent additional tariffs on all imports from the US. This retaliation spooked the global market investors, who went on a selling spree, which resulted in a stock market crash on Friday.
President Donald Trump threatened China on Sunday, April 6, that if it does not roll back the additional 34 per cent tariffs imposed on the Western nation, it will announce a 50 per cent fresh set of tariffs on all Chinese imports to the US.
On Tuesday, April 8, the White House finally announced that it had imposed an additional 50 per cent tariff on China, bringing the total tariff rate up to 104 per cent.
Karoline Leavitt, the Press Secretary of the White House, said, “It was a mistake for China to retaliate. When America is punched, He punches back harder. That’s why there will be 104 per cent tariffs going into effect on China tonight… If China reaches out to make a deal, he will be incredibly gracious.”
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