Trade Tensions Rise: China Retaliates with Steep Tariffs on US Imports

Taiwan's Market Faces Steep Losses as Global Trade War Escalates

China has escalated trade tensions with the United States, imposing a significant 84 percent tariff on US imports, a move that follows similar tariff actions by the US. This development has sent ripples across global markets, with Taiwan experiencing notable losses.

The Chinese Ministry of Finance announced the tariff increase, a response to the US's latest round of tariffs targeting numerous trading partners, including punitive duties on Chinese products. Beijing has consistently voiced its opposition to tariff increases and pledged to safeguard its interests.

The finance ministry stated that the "additional tariff rates" on US imports would rise from 34 percent to 84 percent, effective immediately. They asserted that the US's tariff escalation "severely infringes on China's legitimate rights and interests" and damages the multilateral rules-based trade system.

In a separate announcement, the Chinese Ministry of Commerce said it would blacklist six US artificial intelligence firms, citing their arms sales and collaboration on “military technology” with Taiwan.

Global markets reacted negatively to the escalating trade war. Asian and European shares declined sharply, with Taiwan's TAIEX leading the losses, falling by 5.79 percent. Japan’s Nikkei 225 and South Korea’s KOSPI also saw significant drops.

Amidst these developments, US President Donald Trump has expressed a desire for “tailored deals” with trading partners, prioritizing allies. Discussions of tariff reductions have been noted with nations like Argentina, Vietnam, and Israel.

Other nations are also responding. Canada is implementing tariffs on specific US auto imports, while the EU may unveil its response next week to new US levies. The EU's retaliation against US steel and aluminum levies is also planned, including tariffs on various US goods.