Global Markets Slide as China Unleashes Tariff and Export Shockwaves
Financial markets across Asia, Europe, and the U.S. tumbled this week following China’s announcement of sweeping tariffs and export restrictions in response to fresh U.S. trade penalties. Investors fled risk assets as Beijing slapped a 34% tariff on American goods and halted the export of critical rare earth elements.
The Shanghai Composite fell 3.4%, while the Dow Jones dipped 2.8% amid fears of extended supply chain disruptions and inflationary pressures.
Market analysts warn that industries dependent on semiconductors, electric mobility, and clean energy technologies are particularly vulnerable. “This is not just a China-U.S. story—it’s a global supply chain crisis,” noted analyst Fiona He from Nomura.
The new uncertainty comes at a precarious time, as central banks worldwide are already battling stagflation. Without diplomatic breakthroughs, some warn of a possible global recession triggered by continued escalation.
