China retaliates with 84% tariffs on U.S. imports amid trade tensions

China has taken a significant step in the ongoing trade dispute with the United States by enforcing a staggering 84% retaliatory tariff on U.S. imports. This decision comes in the wake of the Trump administration's implementation of approximately 10% tariffs on numerous imports from other countries, which took effect at midnight around the same time. The Chinese government has asserted that such U.S. tariffs infringe upon China’s legitimate rights, thereby necessitating their response. As the news broke, it led to sharp declines in various stock markets across Asia, with the Nikkei 225 and DAX indices recording notable losses. The trade volume between the U.S. and China has seen considerable growth over the years, escalating from about USD 2.5 billion in 1979 to nearly USD 688.3 billion in 2024, highlighting the deep interdependency between the two nations despite the mounting tensions. The reaction to these tariff announcements was swift; as U.S. companies like Nike and Apple saw their stock prices increase slightly at the opening of the New York Stock Exchange, indicating that investors may be interpreting the news with a sense of cautious optimism. International responses, however, were predominantly negative. Countries across the Asia-Pacific region operated under a significant amount of uncertainty, as markets reacted poorly to the latest tariffs, demonstrating the increasing fears over global economic stability. U.S. Treasury yields also rose in response to the tariff implications, strengthening the dollar against Asian currencies. Overall, the imposed tariffs are set to have wide-ranging consequences, impacting businesses and consumers alike, while contributing to heightened tensions in U.S.-China relations as both countries engage in further negotiations on trade policies and tariffs.