China has struck back.
Following President Donald Trump’s sweeping “Liberation Day” global tariff announcement on Wednesday—which saw China burdened with a 54 percent levy—China retorted with tariffs of its own on Friday.
A flurry of policy announcements included sweeping, across-the-board tariffs on U.S. goods as well as the addition of 11 U.S. companies to its list of “unreliable entities,” essentially barring them from doing business in China or with Chinese companies.
While some observers thought Trump’s harsh foray Wednesday was the first stage in negotiations, China is clearly not backing down from the fight.
The European Union, which was hit with 20 percent tariffs on Wednesday, has also indicated that it would fight fire with fire and reciprocate with tariffs of its own on U.S.-made goods. Those measures have yet to be revealed.
The escalating trade war spooked Wall Street once again Friday morning, as futures dipped more than 2 percent on the news. This comes on the heels of the worst day the market has seen since 2020 in Thursday’s trading session.
