BREAKING: China to impose additional tariffs to the 84% in total on US goods 📌💣

• China Finance Ministry: To impose additional tariffs on US goods from April 10.
• China Finance Ministry: To impose additional tariffs to 84% in total on US goods

We didn’t have to wait long for a response from China. The finance minister has just announced that China is responding with another increase in tariffs on imports from the USA, raising them to a total of 84%. The new trade restrictions are set to come into effect tomorrow, April 10th.

We’re seeing a return to sell-offs on the indices, with major U.S. indices losing around 1.00–1.50%. It’s important to remember that China and the U.S. are reportedly set to hold negotiation talks today (at least according to the previous releases). It’s therefore possible that the current escalation is aimed at gaining a better position and showing the U.S. administration that China remains firm.

China stance yesterday (recap)

Tensions between the U.S. and China have flared up again this week. President Donald Trump has threatened an additional 50% in tariffs on Chinese imports unless Beijing withdraws the 34% retaliatory tariffs it announced last Friday (imposed yesterday)—by the end of today. China has declared it will “fight to the end,” refusing to make concessions and signaling readiness to implement countermeasures (...and proved it by bouncing the ball back twice).