China retaliates again in Trump’s trade war
ABOARD AIR FORCE ONE/BEIJING/LONDON—Beijing increased its tariffs on US imports to 125 percent on Friday, hitting back against President Donald Trump’s decision to raise duties on Chinese goods and increasing the stakes in a trade war that threatens to upend global supply chains.
The retaliation intensified global economic turmoil unleashed by Trump’s tariffs.
US stocks ended a volatile week higher, but the safe haven of gold hit a record high during the session and benchmark US 10-year government bond yields posted their biggest weekly increase since 2001 alongside a slump in the dollar, signaling a lack of confidence in America Inc.
One US survey of consumers showed inflation fears have mounted to their highest since 1981, while financial institutions have been forecasting an ever greater risk of recession.
‘A little moment’
Trump downplayed the market turbulence, predicting the dollar would strengthen and saying his 10 percent across-the-board tariffs represented a floor in most cases as countries strike their own trade deals with Washington.
“When people understand what we’re doing, I think the dollar will go way up,” he told reporters aboard Air Force One late on Friday. “The bond market’s going good. It had a little moment but I solved that problem very quickly.”
