China Lashes Back at Trump, Levies 34% Tariff, Stock Futures Plummet

China Lashes Back at Trump, Levies 34% Tariff, Stock Futures Plummet

On Friday, China hit back at Trump’s tariffs, applying 34% levies on all imported goods from the U.S. Beijing said the retaliatory tariffs would come into effect Thursday, the day after a big part of Trump’s promised tariffs go live.

 

Stock futures immediately plummeted. At the time of publication, the DJIA futures was down more than 1,000 points.

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The Wall Street Journal reported, “Stock futures pointed to more selling pressure on U.S. equities, with S&P 500 futures down more than 2%, adding to Thursday's $3.1 trillion wipeout, the worst day for U.S. stocks since March 2020. Overseas markets took fresh hits. Japan's benchmark stock index fell more than 2.7%. European stocks tumbled more than 4%.”

 

S&P 500 stock futures sank 2.2%. Europe’s equity index tumbled 4%, wiping out all gains for this year. Ten-year Treasury yields slumped 14 basis points, while the dollar steadied.

 

“Separately, China’s Ministry of Commerce said it was adding 11 American companies to its list of “unreliable entities,” essentially barring them from doing business in China or with Chinese companies. The ministry imposed stringent limits on exports of certain rare earth elements that are mined almost exclusively in China and are used in everything from electric cars to smart bombs,” reports the New York Times.

 

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