Published by Global Banking & Finance Review®
Posted on April 4, 2025
2 min readLast updated: January 24, 2026
Add as preferred source on GoogleChina's 34% tariffs on US goods escalate trade tensions, causing global market declines. Investors worry about recession and banking stocks suffer.
LONDON (Reuters) - China announced additional tariffs of 34% on U.S. goods on Friday, retaliating to President Donald Trump's sweeping tariffs this week that have fed fears of a recession and triggered a global stock market rout.
Global stocks tumbled for a second day on Friday, and banking stocks cratered as investors fretted about growth and priced in far more central bank rate cuts. Benchmark 10-year U.S. Treasury yields slid below 4%.
COMMENTS:
SAMY CHAAR, CHIEF ECONOMIST, LOMBARD ODIER, GENEVA
"It's still early to make a final assessment. There are two paths from here: There is the one where (Trump) shows openness to deals and even if we have a harsh start, with reciprocal tariffs and these responses by China, they show willingness to talk and bring tariffs lower in the months to come.
"The other path is he has no appetite to strike deals, wishes to maintain the tariffs for an extended period of time and that breaks the machine.
"I don't think this (Friday's Chinese retaliation) is a signal for one or the other. Everyone will flex their muscles, but it doesn't invalidate the idea that they make a deal at some point. But beside that, we need to have signs that at some point Trump is making comments that he is expecting to strike a deal."
EDDIE KENNEDY, HEAD OF BESPOKE DISCRETIONARY FUND MANAGEMENT, MARLBOROUGH, LONDON
"Others have maybe learned their lessons (from Trump's last term). They are fighting back and saying we can play the same game as you and we are more in a position of strength to negotiate."
"All that is doing is escalating the issue and causing more negative feedback into the market. The biggest concern is this gets pushed onto the consumer."
JAN VON GERICH, CHIEF MARKET STRATEGIST, NORDEA, HELSINKI
"The reaction from China appears stronger-than-expected but we have to look at the detail. If Trump reacts to China's retaliation, then markets could take another hit. There is a risk that things are going too far in the markets selloff, but who wants to catch a falling knife?"
(Reporting by Reuters global markets and finance teams; Editing by Alison Williams)
The article discusses China's imposition of 34% tariffs on US goods and the resulting impact on global markets.
Global stocks tumbled, with banking stocks particularly affected, as investors feared a recession.
There could be further trade negotiations or prolonged tariffs, affecting economic stability.
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