China will impose an additional 34 percent tariff on American goods in retaliation for new tariffs imposed by US President Donald Trump.
As reported by Reuters, China's Ministry of Finance announced that it will introduce a new tariff rate on American goods from April 10, which will be in addition to the existing tariffs currently in effect.
"The purpose of implementing export controls on certain products, in accordance with the law, is to better protect national security and interests, as well as fulfill international obligations such as non-proliferation," the Chinese Ministry of Commerce said in a statement.
Financial markets are now in a serious slump, with Trump's tariffs already causing a $2,4 trillion drop in the value of US stocks on Thursday.
The benchmark S&P 500 index fell 4,8% that day, its biggest daily drop since June 2020.
The index closed at 5.396,52 points, the lowest level in more than seven months.
The Stoxx 600 index, which includes the six hundred largest European companies, fell by 4,4% today. Germany's DAX fell by 5%, reports the Guardian.
A significant drop is also expected on the New York Stock Exchange when trading begins in less than three hours.
Forecasts show that both the S&P 500 and the tech-heavy Nasdaq are on track to fall 2,5%, and the Dow Jones Industrial Average is on track to fall 2,4%.
Bank stocks have seen a steep decline, as have oil prices.
The price of Brent crude oil fell by 6,6% today, to $65,50 per barrel, the lowest level since August 2021, reports the Guardian.
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