Donald Trump has raised tariffs on Chinese imports to 145%, exceeding the 125% rate he announced just a day earlier, in a sharp escalation of the ongoing trade dispute.
On Wednesday night, the former president declared on his Truth Social platform: “Based on the lack of respect that China has shown to the world’s markets, I am hereby raising the tariff charged to China by the United States of America to 125%, effective immediately.”
However, CNBC has since reported that this 125% tariff is in addition to a separate 20% levy targeting fentanyl-linked imports, bringing the overall rate to 145%.
The announcement triggered a wave of volatility across markets. Wall Street suffered steep losses, with the S&P 500 and Dow Jones Industrial Average both falling more than 2%, and the tech-focused Nasdaq Composite sliding over 4%.
The dollar also tumbled amid fears of a slowdown in the U.S. economy. It dropped 1% against the pound, reaching $1.296, and slipped 1.5% versus the euro, which rose to $1.113.
Markets have been shaken by growing concern that Trump’s aggressive tariff strategy could push the U.S. toward recession. Goldman Sachs now estimates the risk at 45%, while bond giant Pimco sees the odds as a 50/50 toss-up.
U.S. Stock Markets Extend Losses
Wall Street’s major indexes are continuing their downward slide this afternoon, with the S&P 500 dropping 3.9%, the Dow Jones falling 3.4%, and the Nasdaq plunging 4.7%.
David Morrison, analyst at Trade Nation, commented: “The immediate danger may have passed, but investors remain acutely aware that uncertainty continues to hang over the markets.”
