China says 'market has spoken' amid escalating US tariffs
China defended its retaliatory tariffs by stating 'the market has spoken' after additional U.S. tariffs led to a significant global selloff, with the S&P 500 falling 9%.
Published on April 5, 2025
On April 5, 2025, China reiterated that 'the market has spoken' following U.S. President Donald Trump’s imposition of additional tariffs on Chinese goods. The U.S. raised tariffs by 34%—bringing the annual total to 54%—and eliminated a duty-free loophole for Chinese packages. In response, China swiftly retaliated with reciprocal tariffs on all U.S. products and imposed export controls on critical rare earth materials, fueling concerns over a deepening trade war.
Global stock markets reacted sharply to these developments. The S&P 500 experienced a steep decline of 9%, its worst performance since the pandemic, while other markets around the world also suffered significant selloffs. Chinese officials and industry leaders warned that these aggressive measures could intensify U.S. inflation and potentially rebuff economic growth, calling for equal-footed consultations to resolve the differences.