China has raised its tariffs on US goods to 84%, following the implementation of Donald Trump’s 104% duties on Chinese products earlier today.
The move comes after China’s foreign ministry strongly criticized the US, vowing to “fight to the end” against Trump’s new trade measures if necessary, and accused the White House of “bullying practices.”
Reacting to China’s decision, Trump addressed businesses, saying “now is a great time” to relocate to the United States.
At the same time, the European Union is getting ready to impose its own set of retaliatory tariffs.
These could include a 25% tax on American goods like motorcycles, luxury boats, and orange juice.
Stock prices for European pharmaceutical companies also dropped after Trump hinted at introducing a “major” tariff on all drug imports.
Before steeper tariffs on around 60 nations came into effect today, Trump said many countries were “dying” to negotiate deals. “I’m telling you these countries are calling us up, kissing my ass,” he said.
The Bank of England said Britain is well placed to weather the storm but warns of future risks as the UK government said it’s “confident” it will get a US trade deal.