China has escalated import tariff on U.S. goods to 125% in a trade standoff between the two biggest economies that has roiled the global stock markets.
U.S. President Donald Trump has announced a series of levies on Chinese imports that now accumulatively stand at 145%.
Although, Trump has frozen tariffs on other countries for 90 days, the markets has responded with a mix of relief and uncertainty.
On Friday, the U.S. stocks opened nervously with the S&P 500 slumping to 0.7% , the Dow Jones Industrial Average shedding 306 points, and the Nasdaq composite losing 0.4%.
Beijing, which has vowed to defend its interests, has termed the U.S. tariff policy as “economic bullying.” Announcing the latest hike, a Chinese Finance Ministry spokesman said “if the U.S. insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end.”
Consequently, the global economy could veer off its recovery after years of stalemate due to pandemic.
Meanwhile, a survey shows erosion of confidence among American consumers. According to the University of Michigan consumer sentiment index has declined by 11% to 50.8. The trend prevails across people of all ages and income.
