Stock Market Suffers Worst Week Since 2020 as China Retaliates with 34% Tariff
Global markets plunged after China imposed a 34% retaliatory tariff on U.S. imports, deepening fears of a global recession amid rising trade tensions and policy battles.
Published on April 5, 2025
On April 4, 2025, China struck back against President Trump’s aggressive tariff hikes by imposing a 34% tariff on all U.S. imports. Global markets reacted sharply: the S&P 500 tumbled 6%, the Dow dropped 2,100 points, and the Nasdaq fell nearly 6%, marking their worst week since 2020.
In addition to the hefty tariff, China implemented further export controls and restrictions on key commodities. These countermeasures, which also extended to additional limits on agricultural and industrial imports, compounded market uncertainties across Europe and Asia and stoked fears of a global recession amid escalating trade and policy disputes.