Beijing’s latest retaliation came after the White House raised its levy on Chinese goods to 125 percent, on top of an existing 20 percent tax. Stocks in Europe were volatile, following losses on Wall Street a day earlier.
China responded to President Trump’s tariffs on Friday, raising its own tariffs on American goods to 125 percent, as the world’s two biggest economies extended a fast-moving tit-for-tat that has seen the cost of trade soar and fueled concerns over a global recession.
The announcement came after Trump administration officials clarified that China was now facing a minimum tariff rate of 145 percent on all exports to the United States. China said its new tariffs, which raise the tax on American imports from 84 percent, would take effect on Saturday.
Stock markets shuddered in response to the latest salvo in the trade war, which came after markets in Asia closed. The Stoxx Europe 600 index slipped about 1 percent. Futures trading suggested that the S&P 500 index was set to open slightly higher.
Here’s what else to know:
- U.S. farmers at risk: The loss of China as an export market will deal a particularly hard economic blow to agricultural workers in many red states, hitting many of the voters who helped Mr. Trump win the presidential election.
- Inflation report: The Consumer Price Index climbed 2.4 percent last month from a year earlier, lower than expected. That data covered a period before the majority of Mr. Trump’s tariffs — including the most recent ones on China — went into effect.
- Republican nerves: Some Republican lawmakers, caught between their deep opposition to tariffs and fear of criticizing Mr. Trump, have cheered his 90-day reprieve on higher tariffs for most countries.