China Vows Retaliation Against Trump Tariffs Amid Global Market Turmoil
China has announced it will take 'resolute measures' in response to the new tariffs imposed by former U.S. President Donald Trump, escalating tensions between the two economic giants. The tariffs, which came into effect on April 5, 2025, have caused global markets to plummet by 10%, reflecting widespread concern over potential trade wars.
Republicans in the U.S. have expressed support for the tariffs, aligning with Trump's economic policies. They argue that these measures will protect American industries and jobs, despite the immediate negative impact on global trade. Critics, however, warn of long-term economic repercussions and increased costs for consumers.
In a unique twist, Chinese AI companies have released videos featuring dancing robots and fraught consumers, humorously mocking the tariffs. These videos have gone viral, highlighting the creative ways in which China is responding to the economic pressure.
Related issues news
What is the Chinese tariff rate on US goods?
China imposes a 34% tariff on imports of all U.S. products starting April 10.
Why are there tariffs?
Tariffs on imports are designed to raise the price of imported goods to discourage consumption. The intention is for citizens to buy local products instead, thereby stimulating their country's economy. Tariffs therefore provide an incentive to develop production and replace imports with domestic products.
How much did the stock market drop?
The decline wipes out more than a year of stock market gains, taking the S&P 500 back to its levels in February 2024. The Dow Jones Industrial Average sank 2,231 points, or 5.5%, and is down 14% since peaking in February. The Nasdaq Composite slid 963 points, or 5.8%.
What US goods does China import?
What does China import from the US? China's biggest imports from the US are soybeans, oilseeds and grains, which in 2024 amounted to $13.4bn, according to US trade data. Other top imports include various fuels amounting to $14.7bn of electrical machinery and $15.3bn worth of agricultural machinery.
