Tension is escalating in global trade. China has announced a 34% customs duty on US goods.

The tension in the global economy has reached its peak. Retaliation from China has followed the US tariffs.

China’s Ministry of Commerce revealed a comprehensive tariff package aimed at the US. Starting from April 10, China announced that an additional 34% customs duty would be imposed on US goods. The tariffs announced by US President Donald Trump were noted as the toughest restrictions imposed on trade in over a century.

HIGH TARIFFS FROM THE US TO CHINA AND THE EU The US implemented additional customs duties on 185 countries. The tariff rates varied between 10% and 50%. The US applied higher taxes to countries with whom it had significant trade deficits. Additional tariffs of 20% to the European Union, 34% to China, and 46% to Vietnam, major trading partners of the US, were declared. EUROPEAN BANKS SUFFER Europe’s banking stocks plummeted following China’s retaliation decision. Expectations that the European Union would also respond strongly to the US created unease in the markets. Deutsche Bank fell by 11%, UniCredit by 12%, Societe Generale by 11%, INtesa by 10%, Santander by 10%, and BBVA shares dropped by 11%.