Escalating Trade Tensions: U.S. Imposes 104% Tariffs on Chinese Goods

China and Hong Kong markets experienced a downturn on Wednesday after the U.S. enforced a 104% tariff on Chinese imports. Despite this, China's state-controlled entities tried to stabilize the market through share investments. Meanwhile, the U.S. is initiating negotiations with other affected trade partners.

China and Hong Kong shares dropped sharply at market open on Wednesday following an escalation in the ongoing U.S.-China trade war. The U.S. has imposed a hefty 104% tariff on Chinese imports, effective from Wednesday morning.

Key indices reflected the tensions, with China's blue-chip CSI300 Index decreasing by 1.2%, the Shanghai Composite Index down by 1.1%, and Hong Kong's Hang Seng Index plummeting by 3.1%.

In response to these developments, Chinese state holding companies increased their stock market investments to offer some stability. Meanwhile, numerous listed firms announced share buybacks to mitigate the market's decline.

(With inputs from agencies.)