Stocks Tumble as US Implements 104% Tariffs on China, Treasuries Slammed

On April 9, 2025, global financial markets were thrown into turmoil following the US imposition of a staggering 104% tariff on Chinese imports. This aggressive move intensified trade tensions between the two largest economies, leading to sharp declines in major Asian indices such as Tokyo’s Nikkei 225 and Hong Kong’s Hang Seng, along with a dramatic reversal for the S&P 500, which lost over $5.8 trillion in value over four days.

Investors shifted their focus to safe-haven assets, bolstering currencies like the yen and Swiss franc, while oil prices dropped nearly 4% amid concerns of weakened Chinese demand. Additionally, the Chinese yuan approached its weakest level since 2007 and US Treasury yields on 10-year and 30-year notes spiked, reflecting fears of foreign capital flight. Analysts warned that these measures could put the global economy at risk, with JPMorgan comparing the tariff’s impact to a $400 billion tax hike on the US economy.