China Is First To Retaliate On Tariffs — Other Countries Won’t Be Far Behind

Now that the US has declared trade war on the world, it’s time for other countries to return the favor. In the weeks leading up to Trump’s teased “Liberation Day,” several nations banded together, collaborating on possible ways to respond. On Friday morning, China became the first to send a shot across America’s bow.

• In response to Trump’s latest levies, the country is imposing 34% tariffs on US imports — and is also banning some American companies from doing business in China.
• Markets fell on Friday following China’s retaliation, extending Thursday’s big drop — with the S&P 500 and Nasdaq Composite falling nearly 6% on the news.

And China likely won’t be the last: While some countries like Vietnam have been looking to broker a deal with Trump to reduce their tariffs, many US allies are not banking on talks with the President to end the levies. Canada has already matched the US’s 25% auto tariffs — adding to the pile of retaliatory tariffs that have already been issued in response to previous blanket tariffs introduced by the administration. And in short order, the EU and Japan are expected to respond soon to the “disappointing” tariffs.