U.S. Tariffs on China Hit 145%, Markets Plunge Globally

The United States raised tariffs on Chinese imports to a total of 145%, triggering sharp declines in global financial markets. This escalation in the trade war between the world’s two largest economies has fueled uncertainty and disrupted investor confidence.

The Dow Jones Industrial Average dropped over 1,000 points, or 2.5%, while the S&P 500 and Nasdaq fell by more than 3% and 4%, respectively. In Brazil, the Ibovespa index lost 1%, falling below 127,000 points, as the dollar surged past R$5.93.

This market turmoil follows an earlier rally sparked by President Donald Trump’s announcement of a temporary 90-day tariff suspension for non-retaliatory nations, which had pushed the S&P 500 up by over 9%.

However, Trump simultaneously increased tariffs on Chinese goods from 104% to 125%, adding a further 20% levy on fentanyl-related imports. China retaliated by raising tariffs on U.S. products from 34% to 84%.

The tariff escalation comes amid broader economic challenges. U.S. inflation unexpectedly fell by 0.1% in March, with government bond yields declining in response.

Meanwhile, oil prices also dropped sharply, with Brent crude falling over 4% and WTI dipping more than 5% to below $60 per barrel. Despite modest gains in Asian and European markets earlier this week, analysts remain cautious.

They warn that prolonged trade tensions could destabilize global supply chains and slow economic growth. The U.S.-China trade war now casts a long shadow over global markets, leaving investors uncertain about the future.

While temporary tariff suspensions provide some relief, the escalating conflict underscores the fragility of international trade relations. It also raises concerns about a potential global economic slowdown.