China has formally declared a hike in tariffs on US imports, increasing the rate to a whopping 125%. This action is likely to severely limit US access to the Chinese market, causing waves in international trade.
The news comes after a White House clarification that indicated it is imposing 145% tariffs on Chinese imports. The amount is the addition of the already announced 125% tariff and an additional 20% import tariff to tackle fentanyl smuggling.
Following the news, worldwide stock markets tumbled, the US dollar fell, and pressure to sell government bonds grew stronger on Friday.
In the meantime, the European Union has opted to suspend its counter-tariffs after President Trump announced a 90-day moratorium on “reciprocal tariffs” for almost 60 nations. However, a benchmark 10% tariff still persists, which signifies the ongoing frictions in international trade relations.
