• China raised tariffs on US goods to 84% on Wednesday.
• The move follows President Donald Trump's decision to further increase tariffs on imports from China.
• The European Union announced its first retaliatory tariffs affecting US goods worth about $23 billion.

China imposed 84% tariffs on US imports and Europe made its first move on Wednesday as the global trade war escalated.

The measures follow President Donald Trump's sweeping tariffs against trade partners, including imposing cumulative 104% charges on Chinese goods.

Beijing retaliated after the US tariffs took effect on Wednesday. Its charges will be imposed from Thursday, a government statement said.

"China urges the US to immediately correct its wrong practices, cancel all unilateral tariff measures against China, and properly resolve differences with China through equal dialogue on the basis of mutual respect," the statement said.

The announcement pushed European stock markets lower, but the S&P 500 posted early gains.

The European Union announced its first retaliatory tariffs after the US imposed 25% levies on EU steel and aluminum exports last month.

The tariffs on US goods worth about $23 billion will take effect this month and target products such as soybeans, diamonds, and poultry.

Zhiwei Zhang, chief economist at Pinpoint Asset Management, said China had sent a "clear signal" that it intended to maintain its stance despite the higher US tariffs.

"China can afford to wait. I don't expect a quick and easy way out from the current trade conflict," Zhang said. "The damage to the two economies will become visible soon. The outlook for international trade and global economic growth is highly uncertain."

On Tuesday, Trump wrote on Truth Social: "China also wants to make a deal, badly, but they don't know how to get it started. We are waiting for their call."

Treasury Secretary Scott Bessent told Fox Business on Wednesday that China's reluctance to negotiate was "unfortunate" and said it had the "most imbalanced economy in the history of the modern world."

Beijing vowed on Tuesday to "fight to the end."

"Judging from its actions, the US doesn't seem to be serious about having talks right now," said Lin Jian, a Chinese foreign ministry spokesperson.

"If the US truly wants to talk, it should let people see that they're ready to treat others with equality, respect and mutual benefit."

Narrow path

Analysts are bracing for a long standoff between the two mega economies.

"We see a narrow path to resolution for the ongoing tariff gridlock between the US and China as well," wrote Yeap Jun Rong, a market strategist at IG.

"Even if negotiations resume in the future, reaching a consensus may prove difficult, suggesting that trade tensions could persist for an extended period."

Marc Rowan, the CEO of Apollo, told CNBC he expected the Trump administration to reach agreements on tariffs with the "vast majority" of trading partners.

• China will impose a 34% tariff on all US imports from April 10.
• China had retaliated against earlier tariffs from Trump in recent months.
• Trump has imposed 54% tariffs on China since taking office in January.

China announced its own levies on US imports on Friday following President Donald Trump's tariffs decision.

Beijing will start charging a 34% tariff on all US imports from April 10, the official Xinhua news agency said on Friday.

That matches the 34% tariffs against China that Trump announced on Wednesday. They come on top of 20% levies against the country since he took office in January, bringing the total to 54%.

The announcement triggered further falls on stock markets, with Europe's STOXX 600 tumbling 4.5% in early afternoon trading. Dow Jones futures shed about 2.6% at 7 a.m. ET, indicating a fall at the open of about 1,100 points.

A statement from China's Office of the Tariff Commission of the State Council hit out at the "reciprocal tariffs" being imposed on Chinese goods exported to the US.

"The US practice is inconsistent with international trade rules, seriously undermines China's legitimate rights and interests, and is a typical unilateral bullying practice that not only undermines the interests of the United States itself, but also endangers global economic development and the stability of the production and supply chain," it read.

Guo Jiakun, a Chinese foreign ministry spokesperson, said on Thursday that the US move "gravely violates WTO rules, and undermines the rules-based multilateral trading system."

China had retaliated against earlier tariffs from Trump in recent months.

In February, Beijing retaliated against a 10% tariff Trump put on all Chinese goods. At the time, China's Ministry of Finance said the country would impose a 15% tariff on coal and liquefied natural gas and a 10% tariff on crude oil, agricultural machinery, and some vehicles.

In March, China hit back swiftly again after Trump doubled tariffs against the country to 20%. This time, Beijing targeted American agriculture, announcing 10% tariffs on US soybeans, pork, and beef imports and 15% tariffs on chicken and cotton imports.

Analysts had signaled more measures from China were likely after Trump's Wednesday announcement.

"Retaliation will likely follow a phased progression, leaving stronger actions in reserve for further escalation while also maintaining space for possible negotiations," Eurasia Group analysts in a Thursday note.

"However, each round of escalation and retaliation increases the likelihood of a breakdown in bilateral ties this year."

• President Donald Trump announced his "Liberation Day" tariffs on Wednesday.
• Many commentators have questioned the tariffs and highlighted their potential economic consequences.
• One said Trump was unlikely to U-turn on the tariffs, so it was time to "sell the dip," not buy it.

President Donald Trump announced his "Liberation Day" tariffs on Wednesday — and people have been reacting as global markets take a hammering.

Here's what big names in business and economics have been saying:

Business Roundtable

Joshua Bolten, the CEO of Business Roundtable, an association that represents more than 200 CEOs, said in a statement the tariffs "run the risk of causing major harm to American manufacturers, workers, families and exporters." He added: "Damage to the US economy will increase the longer the tariffs are in place and may be exacerbated by retaliatory measures."

He said the Business Roundtable "supports President Trump's goal of securing better and fairer trade deals with our trading partners" but called on him to introduce "additional reasonable exemptions" and a "transparent, predictable exclusion process."

Larry Summers

"Never before has an hour of Presidential rhetoric cost so many people so much," Larry Summers, a former Treasury secretary, wrote on X. "The best estimate of the loss from tariff policy is now closer to $30 trillion."

Summers added that the tariffs were the most expensive and "masochistic" the US had imposed in decades.

Mohamed El-Erian

"The price action in global financial markets in the immediate aftermath of the US tariff announcement points to major worries about global economic growth," Mohamed El-Erian, the former CEO of bond giant PIMCO and the chief economic advisor at Allianz, said on X.

Mariana Mazzucato

"These tariffs will cause inflation in the United States; they will cause lower consumer power of US workers. The estimates are between $1,700 to $5,000 per family in terms of the costs of these tariffs," Mariana Mazzucato, an economics professor at University College London, told ITV's "Peston" program.

Boaz Weinstein

Boaz Weinstein, Saba Capital Management's founder, doesn't expect Trump to change course, posting on X: "I'm often wrong, but I don't see him doing a u-turn. This is not a buy-the-dip opportunity. It's a sell the dip opportunity."

David Rosenberg

"So, this tariff file is now being labeled 'Make America Wealthy Again'? What is with that adverb 'again' which is defined as 'returning to a previous condition'? The previous condition, I can tell you, was not nearly as good as the current condition, seeing as US net national net worth just reached a record level of $157 TRILLION (a cool $1.2 million per household … too bad we don't all live at the average!)," David Rosenberg, the founder and president of Rosenberg Research & Associates, said on X.

"Have tariffs really stood in the way of wealth creation in America? I think the title should simply be the truth: 'Let's Make the World Poor Again' (and then we can buy it at a discount)," Rosenberg added.

Nouriel Roubini

Nouriel Roubini, a professor emeritus of the NYU Stern School of Business, said the "Liberation Day" label was "Orwellian doublespeak."

"Whatever the consequences of these tariffs will be — ie lower growth and higher inflation and how much of it depending on the eventual size of these tariffs post-negotiations that will be ugly and long-drawn. There is absolutely no 'liberation' at all in them: not for US consumers, workers and businesses, let alone for the rest of the world," he said on X.

Paul Krugman

"I guess it's just possible that when we get details about the Trump tariffs they will be lower than what he just announced, but based on what he said, he's gone full-on crazy," Paul Krugman, a Nobel Memorial Prize-winning economist and former MIT and Princeton University professor, wrote in his Substack newsletter.

"If you had any hopes that Trump would step back from the brink, this announcement, between the very high tariff rates and the complete falsehoods about what other countries do, should kill them," Krugman added.

Howard Silverblatt

"March continued with President Trump's rapid executive orders and policy changes, as tariffs (along with their potential impact on the economy), inflation, employment and consumer spending became the main concerns of the market, which pulled back with increased trading on strong negative breadth," wrote Howard Silverblatt, senior index analyst of S&P Dow Jones Indices, in a S&P Global column.

"Adding to the concern were Elon Musk's Department of Government Efficiency (DOGE) government employment reductions, as well as US layoffs, which have increased (along with retail warnings)," he added.

The Yale Budget Lab

"The price level from all 2025 tariffs rises by 2.3% in the short-run, the equivalent of an average per household consumer loss of $3,800 in 2024$. Annual losses for households at the bottom of the income distribution are $1,700," wrote the Yale Budget Lab in a new analysis published on April 2, shortly after Trump's blanket tariff announcement.

Jared Bernstein

"True, the United States is a large and dominant country. And it is a relatively closed country, meaning we depend less on trade than most other countries," said Jared Bernstein, former chief economist, in his newsletter. "That means, as Trump has correctly argued, we can hurt them more than they can hurt us. He fails to give a coherent rationale for why we need to start a trade war with Canada, Mexico, Japan, Europe, and other traditionally reliable trading partners."

"First, though they've been explicitly cavalier about the pain they're causing, higher inflation, slower growth, lower investment, falling stock prices — as of this moment, the Dow is down 1,200 points — and higher recession chances could force them to recant. But, at least so far, that may have been the way of Trump 1; it's not the way of Trump 2," he added.

Justin Wolfers

"Monstrously destructive, incoherent, ill-informed tariffs based on fabrications, imagined wrongs, discredited theories and ignorance of decades of evidence. And the real tragedy is that they will hurt working Americans more than anyone else," said Justin Wolfers, economics professor at University of Michigan and public policy scholar, on BlueSky.

Daryl Fairweather

"If these tariffs were more targeted and on specific goods, I wouldn't be so sure we would have stagflation. But these appear to be extremely broad, so I expect higher inflation and lower or even negative economic growth," said Daryl Fairweather, Redfin chief economist, on BlueSky.

"Home construction was already going to be weak this year, but these tariffs (combined with labor problems from immigration policy) will mean fewer homes built," she added.

Bill Gross

The latest set of tariffs is "a similar event to going off the gold standard in 1971. It's an epic event. It's not something where you can time quickly for a market bottom. It's something that we're going to have to live with as long as President Trump continues with this stance," Bill Gross, the cofounder of Pimco, told CNBC.

"I don't think he's going to back down. President Trump, to be very blunt, is a macho male, and this macho male is not going to back down tomorrow simply because the Nasdaq's down 5%," said Gross, who's also known as "Bond King."

Gross said it's not a time for investors to bottom fish, likening it to "catching a falling knife."

Steven Blitz

"Tariffs attack US trading partners but, in effect, attack US corporate profit margins first," wrote Steven Blitz, the chief US economist at GlobalData.TS Lombard. "The 40-odd years of profits rising relative to GDP has ended. The macro risk hitting markets is real, but only accentuates the devaluation process."

"Further exacerbating market volatility is redirection of foreign capital from the US to wherever multiple expansion appears more promising," Blitz wrote.

Jim O'Neill

Jim O'Neill, former chief economist at Goldman Sachs, told BBC News on Friday that the "sensible" thing to do would be for the UK to speak to other members of G7, aside from the US, about lowering trade barriers between each other, particularly for cross-border services.

He said this would be "very healthy for all those countries because it's the one area of global trade that most countries haven't done enough in."

If the US wants to continue down this "kamikaze path," the UK will have to respond, O'Neill added. "It is the US which is going to be hurt more, especially in the short-term, from these rather insane moves."

Stephanie Kelton

"Just had a journalist ask me to explain "Liberation Day,"" Stephanie Kelton, author of The Deficit Myth, wrote in a post on X. "I told him it's about liberating Americans from some of the cash in their wallets."

George Saravelos

George Saravelos, a Deutsche Bank analyst, said in a Friday note that markets were pricing in a global recession.

"This is a US-centric fiscal shock driven by the Trump administration and it is fiscal policy that can unwind it. The countries that respond the quickest and most forcefully to this shock are those whose currencies will likely be the most resilient. And, on the flipside, the more the US fiscal strategy under the Trump administration lacks visibility, the more the market will punish the dollar and US assets.

"One last point: don't expect a reluctant-to-cut Fed to support the dollar. Remember that during the European supply-shock of 2022, the ECB turned hawkish. The euro sold-off regardless because real rates and growth expectations collapsed."

Kristalina Georgieva

Kristalina Georgieva, managing director of the International Monetary Fund, warned that US tariffs posed a "significant risk" to the global economy.

"We are still assessing the macroeconomic implications of the announced tariff measures, but they clearly represent a significant risk to the global outlook at a time of sluggish growth," she said in a statement on Thursday.

Christine Lagarde

Christine Lagarde, president of the European Central Bank, told Ireland's Newstalk that the tariffs would be "negative the world over."

She said Trump's move "will not be good for the global economy and it will not be good for those who inflict the tariffs and those who retaliate."