Chinese Premier Li Qiang said that China is fully prepared to deal with any problems caused by new US tariffs. This came after US President Donald Trump announced a massive 104% tax on all products coming from China, starting at 12:01 am on April 9, according to Bloomberg.
During a call with European Commission President Ursula Von der Leyen on Tuesday, Li explained that China has already planned for such international challenges in its 2025 economic strategy. He expressed strong confidence that China’s economy will continue to grow in a healthy and stable way. Li also criticized the US tariffs, calling them an example of “unilateralism, protectionism, and economic bullying.” He said China’s response will not only protect its own economy but also support global trade rules.
While China faces a 104% tariff, the European Union will also be hit with a 20% import tax. These new rules come under Trump’s “reciprocal tariffs” policy, which aims to match or exceed the import taxes other countries place on US goods.
Also Read: Thailand Faces U.S. Tariffs Head-On with Bold Economic Adjustments
China May Hit Back with Hollywood Ban
In response, China is planning to take strong action. Some well-known Chinese bloggers shared that the government may put tariffs on US farm products and even ban Hollywood movies from being shown in China. Trump, however, claimed that “China wants to make a deal badly” and said he’s waiting for their call. His press secretary later added that he “will be gracious” if China’s leaders want to talk.
US Stock Market Drops Again
Meanwhile, the US stock market took a big hit on Tuesday. At first, stocks jumped, with the S&P 500 gaining 4.1%, which could have been one of its best days in years. But the mood quickly changed, and the index dropped to a 1.6% loss by the end of the day. The Dow Jones lost 320 points after rising by 1,460 points earlier, and the Nasdaq dropped 2.1%.
Read More: US Treasury Chief: China’s Tariff Strategy Puts Global Trade at Risk
Investors are confused and worried about what Trump’s trade war will mean for the future. The S&P 500 is now nearly 19% lower than its peak in February, raising concerns about economic stability and future investments.
