Business News

Following China's announcement of 34% tariffs on all US imports, US President Donald Trump said on Friday that China had 'panicked' over the escalating trade tensions. His post suggested that Beijing had overreacted to the initial American tariffs.In a post written entirely in capital letters, he stated, "CHINA PLAYED IT WRONG, THEY PANICKED -- THE ONE THING THEY CANNOT AFFORD TO DO!" China's move comes after the US, on April 2nd, implemented its own 34% tariffs on all goods entering the country from China, a move framed as part of his "reciprocal tariffs" plan. Beijing had promptly called on the US to immediately cancel the newly imposed tariffs.The tit-for-tat imposition of significant tariffs by both economic powerhouses signals a further deepening of the global trade war that began during President Trump's first term in the White House from 2017 to 2021.Meanwhile, China has also imposed new export controls on key rare earth elements, an area where it holds a dominant position. This move could severely limit the US access to vital minerals used in everything from smartphones and electric vehicle batteries to defense technologies, reported Reuters.Beijing also filed a formal complaint with the World Trade Organization on Friday over the new US tariffs, claiming the measures violate WTO rules and requesting consultations.In a statement, the Permanent Mission of China to the WTO stated, "China has filed the WTO complaint regarding the United States' measures," adding that the new tariffs clearly violate WTO regulations.According to the Reuters report, the escalation has sparked fears of a recession and triggered a global stock market sell-off.