Days after the US announced steep tariff hikes on $300 billion worth of Chinese products, China hit back on Monday raising tariffs on over 5,000 US products worth $60 billion. The new rates, which will kick in from June 1, range from 5% to 25%.
Announcing the decision, Chinese foreign ministry said Beijing would not surrender to US pressure tactics in an apparent reference to US President Donald Trump’s warning that China “will be hurt badly” if it did not strike a deal with the US.
Global markets tanked as the news spread. London’s FTSE 100 fell 0.5%, Shanghai Composite Index lost 1.21% or 35.50 points and Shenzhen Composite Index ended 1.08% lower.