Kathmandu: US markets opened slightly lower on Thursday amid growing investor uncertainty, following renewed tensions in the global trade landscape sparked by US tariffs on Chinese goods, according to a report by the BBC.
The market dip comes as China announced a steep increase in import taxes on American products—up to 125%—in retaliation to a 145% tariff imposed by the United States on select Chinese imports. The sharp escalation has reignited fears of a prolonged trade war between the world’s two largest economies.
Chinese President Xi Jinping called on the European Union to align with China against what he described as “bullying” by the US. “There are no winners in a tariff war,” Xi said during a joint press appearance in Beijing, urging greater multilateral resistance to American trade tactics.
In contrast, former US President Donald Trump defended the aggressive tariff policy. “The US is doing really well on our tariff policy,” Trump said, claiming the measures are “moving along quickly” and would ultimately benefit American industries.
Amid the tensions, the US dollar slumped to a three-year low, with Deutsche Bank noting that “the damage has been done.” Analysts suggest the weakening dollar reflects investor anxiety over the long-term implications of escalating trade barriers.
Global markets have reacted with volatility, as investors assess the potential impact on supply chains, exports, and economic growth. The BBC reports that fluctuations in Asian and European markets earlier in the day had already set a cautious tone ahead of the US market opening.
Source: BBC