Markets Shudder as 104% Tariffs on China Take Effect
Global markets are reeling as the U.S. imposes a 104% tariff on Chinese goods, intensifying trade tensions and fueling recession fears. Investors are shifting to safe-haven assets amid widespread market declines.
Published on April 9, 2025
On April 8-9, 2025, global markets were jolted as the United States implemented a staggering 104% tariff on Chinese imports, deepening the ongoing trade war. Investors, alarmed by the escalation, quickly moved away from equities towards safe-haven assets like the Japanese yen and the Swiss franc. Major Asian stock markets suffered steep declines, while signs of stress were also evident in Europe and emerging markets, with Indonesia’s rupiah approaching record lows and China’s yuan hitting a 19-month low.
The move has further fueled recession fears, prompting a sell-off of U.S. assets amid uncertainty over deteriorating U.S.-China relations. U.S. Treasury yields surged notably, and financial strains extended to sectors impacted by retaliatory measures. As discussions continue among global leaders, markets remain volatile and cautious, grappling with the economic fallout of this bold tariff strategy.