China's announcement on Friday that it will impose a 34% tariff on imports of all US products beginning April 10, as part of a flurry of retaliatory measures following Donald Trump’s “Liberation Day”, has sent the markets in free fall. The FTSE 100 plunged just minutes after the move was announced by Beijing, falling to 8,160.40 and taking its losses today to 3.7%.
The new tariff matches the rate of the US "reciprocal" tariff of 34% on Chinese exports that the US President ordered this week. The US stock markets is also expected to react negatively to the news. The Dow Jones Industrial Average, S&P 500 and Nasdaq were all on course to plunge more than 2 at the start of trading.
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