Entering the second episode of retaliatory tariffs between the United States (US) and China, and the heat on the global market is increasingly felt.
Investors are now watching every moment of the development of these two largest economic powers in the world to wait for who will fall first.
Most recently, after the US increased tariffs by 50%, China responded with the same rate yesterday.
The total amount of tariffs imposed by China on US goods has now reached 84% starting April 10.
Is that today… tomorrow? Maybe up. Maybe down. Who knows?
This escalation of ‘retaliatory’ tariffs could threaten almost $600 billion in trade between the two countries.
The tangible effects are beginning to be felt with Wall Street slipping, with the S&P 500 index now entering the bear market zone after declining almost 20% from its high.
The Asian market is no exception. Korea's Kospi and China's Shanghai Composite also fell sharply.
China, which had been more open to negotiations, has now chosen a hard line.
Although US Treasury Secretary Scott Bessent said China's actions would "eat itself," President Xi Jinping has shown no sign of backing down.
Tariff war heats up. Negotiations frozen. The world economy is suffering.
