Donald Trump announced an additional 50% tariff on Chinese goods if China doesn't remove its retaliatory tariffs. This announcement follows a week of market turmoil caused by previously imposed tariffs and Chinese countermeasures.
Global markets reacted with significant drops. The Hang Seng index in Hong Kong experienced its largest decline since 1997 (-13.22%), while the CSI300 and SSEC in China fell by 7.05% and 7.34%, respectively. The Japanese market also saw substantial losses.
These drops followed earlier losses due to Trump's announcement of global tariffs and China's retaliatory actions (34% tariffs on US imports).
Over 50 countries have reportedly contacted the US seeking negotiations. The European Union proposed a deal to eliminate tariffs on industrial goods between the EU and the US. However, Kevin Hassett, director of the White House's National Economic Council, suggests that convincing Trump to sign an agreement might be difficult.