China hits back at Trump tariff hike, turmoil rings recession alarm
(VOVWORLD) - Beijing on Friday increased its tariffs on US imports to 125%, hitting back against US President Donald Trump's decision to hike duties on Chinese goods to 145% and raising the stakes in a trade war that threatens to up-end global supply chains.
 China Shipping containers are seen at the port of Oakland, as trade tensions escalate over US tariffs with China, in Oakland, California, US, April 10, 2025. (REUTERS/Carlos Barria) |
China's retaliation intensified the economic turmoil unleashed by Trump's tariffs, with markets tumbling further and foreign leaders puzzling how to respond to the biggest disruption to the world trade order in decades.
Global stocks fell, the dollar slid and a sell-off in US government bonds picked up pace on Friday, reigniting fears of fragility in the world's biggest bond market. Gold, a safe haven for investors in times of crisis, scaled a record high.
"Recession risk is much, much higher now than it was a couple weeks ago," said Adam Hetts, global head of multi-asset at Janus Henderson.
Asian indices mostly followed Wall Street lower on Friday.
US Treasury Secretary Scott Bessent shrugged off the renewed market turmoil on Thursday and said striking deals with other countries would bring certainty.