China, Hong Kong Stocks Plunge as Beijing Retaliates Against Trump Tariffs
Source: DairyNews.today
Chinese and Hong Kong equities fell sharply on Monday after Beijing unveiled sweeping retaliatory tariffs in response to new U.S. trade measures, reigniting fears of a prolonged economic conflict between the world’s two largest economies.
China’s blue-chip CSI 300 index dropped nearly 6%, while the Shanghai Composite also slid 6%, with both benchmarks hitting their lowest levels since late September 2024.
In Hong Kong, the Hang Seng Index plunged 8.8%, marking its steepest decline since early February. Technology and export-oriented companies led the sell-off, reflecting investor concern over rising trade barriers.
Market tensions escalated last week after U.S. President Donald Trump imposed an additional 34% tariff on Chinese imports, on top of existing 20% duties. Trump also confirmed a 25% tariff on imported vehicles and auto parts, set to take effect on April 9.
In a swift response, Beijing imposed a 34% tariff on a wide range of U.S. goods, including agricultural products, energy exports, and key technology components, signaling a hardening of its stance.
The tit-for-tat measures have rattled global markets and deepened concerns over a broader slowdown in international trade.
“After earlier restrained responses to fentanyl-related tariffs that had left room for negotiations, it now appears that a second trade war is in full swing,” analysts at ING wrote in a recent note.
In Hong Kong, the Hang Seng Index plunged 8.8%, marking its steepest decline since early February. Technology and export-oriented companies led the sell-off, reflecting investor concern over rising trade barriers.
Market tensions escalated last week after U.S. President Donald Trump imposed an additional 34% tariff on Chinese imports, on top of existing 20% duties. Trump also confirmed a 25% tariff on imported vehicles and auto parts, set to take effect on April 9.
In a swift response, Beijing imposed a 34% tariff on a wide range of U.S. goods, including agricultural products, energy exports, and key technology components, signaling a hardening of its stance.
The tit-for-tat measures have rattled global markets and deepened concerns over a broader slowdown in international trade.
“After earlier restrained responses to fentanyl-related tariffs that had left room for negotiations, it now appears that a second trade war is in full swing,” analysts at ING wrote in a recent note.
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