 "Representational image. AP")
China’s retaliatory tariffs of 84 per cent on all imported American goods came into effect on Thursday, hours after US President Donald Trump upped the ante and raised duties on Beijing to 125 per cent.
The levies will apply to all US products entering the world’s second-largest economy, which, according to the office of the US Trade Representative, totalled $143.5 billion in 2024.
Trump, in a midnight surprise, paused tariffs on most countries except China, whose duties were raised to 125 per cent from the earlier 104 per cent. His announcement on halting the implementation of tariffs led stocks across the world to surge, giving hope to investors after days of bloodbath.
“People were jumping a little bit out of line, they were getting yippy, a little bit afraid,” Trump said. “Yippy” is a term in sports to describe a loss of nerves.
He said he had been watching the “very tricky” state of the crucial US bonds market before his decision.
“I saw last night where people were getting a little queasy,” he said, as US bond yields rose during the stocks sell-off – a major economic red light as American sovereign government debt is normally seen as a safe haven for investors in troubled times.
Markets have been on a rollercoaster ride since Trump’s announcement of sweeping global tariffs one week ago on what he called “Liberation Day” before his dramatic pause on Wednesday.
Impact Shorts
More ShortsMarkets in Asia rallied Thursday, with Hong Kong, Tokyo, Taipei, Australia, Indonesia and Singapore sharply higher.
Trump had imposed 10 percent baseline tariffs on all countries, which came into effect on Saturday, and higher rates on key trading partners such as China and the European Union, whom he accused of cheating the United States, which activated on Wednesday.
With inputs from agencies