China has announced plans to impose reciprocal tariffs of 34% on all U.S. goods starting April 10, following the U.S. decision to add a similar tariff on Chinese imports. This move by China is in response to U.S. President Donald Trump's recent actions, which China views as "unilateral bullying" that undermines international trade rules and China's legitimate interests.

President Trump reacted to China's announcement by stating that China had "panicked" after his decision to impose tariffs. He expressed this sentiment on his social media platform, suggesting that China's reaction was a strategic mistake.

The U.S. had previously imposed additional tariffs on Chinese goods, citing the need to curb illicit fentanyl imports from China. These tariffs, combined with existing ones, will result in Chinese goods facing over 54% tariffs in the U.S..

China's retaliation is more comprehensive than previous responses, targeting a broader range of U.S. imports and including actions against specific U.S. firms. China has added 11 American companies to its "unreliable entity list" and placed export controls on 16 U.S. firms to restrict the export of dual-use items. Additionally, China has initiated an anti-dumping investigation into U.S.-made medical CT X-ray tubes and imposed export controls on certain rare-earth minerals to the U.S..

The announcement led to significant market volatility, with U.S. stock futures plummeting on Friday. Dow futures dropped by 1,000 points, and European and UK stocks also experienced substantial declines.

U.S. Secretary of State Marco Rubio noted that while markets are currently unstable, they will adjust once the new trade rules are clear.

ANI