European stock markets tumble after China announces 84 per cent tariffs on US goods
China will raise its tariffs on goods from the United States to 84 per cent from Thursday. The rise comes in response to the earlier US increase in tariffs to 104 per cent on Chinese goods, which took effect on Wednesday. In response to the news, European stock markets are plunging.
Last week, US president Donald Trump announced an increase in tariffs on Chinese goods by 34 per cent on top of the existing 20 per cent, to 54 per cent. China then decided to introduce a retaliatory tariff of 34 per cent, after which the US decided on Monday to add another 50 per cent, to 104 per cent. In response, China is now doing the same, raising its import tariff on US goods from 34 to 84 per cent.
With the announcement, China is making it clear that it has no intention of bowing to US threats. Earlier on Wednesday, China's ministry of commerce said it will “fight to the bitter end” if the US does not stop the tariff war. The Chinese attitude is very different from the EU's more moderate approach.
European stock markets tumble
In response to the news of China's increase in tariffs on US goods, European stock markets are tumbling. They had already started the day in negative territory and the losses are now deepening.
In Brussels, the Bel20 index plunged more than 4 per cent into the red around noon, as did the CAC40 in Paris. The AEX stock market in Amsterdam also approached the 4 per cent mark at 3.92 per cent and in Germany, the Dax was 3.8 per cent in the red. The European index Euro Stoxx 50 also was 3.9 per cent in the red.
A man walks past a screen showing stock trading in Beijing on 9 April 2025 © BELGA PHOTO ADEK BERRY / AFP
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