The People's Republic of China flag and the U.S. Stars and Stripes fly on a lamp post along Pennsylvania Avenue near the U.S. Capitol in Washington
Reuters

The U.S.-China trade war took a dangerous turn Friday as Beijing announced sweeping 34% tariffs on all American imports, effective April 10. According to CNN, this brings total U.S. tariffs on Chinese goods above 54% this year after Washington's latest round of duties.

Financial markets reeled from the news. Dow futures plummeted 1,000 points overnight, with the S&P 500 and Nasdaq poised for similar losses.

European markets suffered their worst day in years, extending Thursday's brutal selloff that saw the Dow plunge 1,600 points - its steepest drop since 2020.

As reported by The Guardian, China's retaliation extended far beyond tariffs. Authorities blacklisted 11 U.S. firms as "unreliable entities" and imposed export controls on 16 others.

They also restricted access to seven critical rare-earth minerals and launched anti-dumping probes into U.S. medical equipment.

"The U.S. continues its unilateral bullying in violation of international norms," China's tariff commission stated, framing the measures as necessary counteractions.

While Secretary of State Marco Rubio predicted markets would stabilize, businesses face mounting costs and supply chain disruptions with no resolution in sight.