Escalating Tariff Tensions: Global Markets in Turmoil

Beijing has increased tariffs on U.S. imports to 125%, retaliating against U.S. President Trump's hike on Chinese goods to 145%, heightening the trade war and causing global market instability. This has led to financial volatility reminiscent of early COVID-19 times, triggering fears of a recession.

On Friday, Beijing escalated its tariff impositions on U.S. imports to 125%. This move counters U.S. President Donald Trump's decision to raise duties on Chinese goods to 145%, intensifying a trade war threatening global supply chains and economic stability.

Financial markets reacted sharply to these developments, with stocks plunging and a sell-off in U.S. government bonds gaining momentum. Gold, a traditional safe haven, hit record high levels, reflecting deepening recession fears. The markets are facing volatility comparable to the early days of the COVID-19 pandemic.

Despite the unrest, U.S. Treasury Secretary Scott Bessent expressed optimism on Thursday, emphasizing new trade discussions with Vietnam. Meanwhile, France and other European nations grappled with the trade war's impact, calling for a 'fragile pause' as they sought to negotiate with the U.S.

(With inputs from agencies.)