Global Markets Experience Tension as China Responds to US Tariffs
(MENAFN) International financial markets experienced a downturn on Friday, while the price of gold climbed by 1.3 percent as investors flocked to traditional safe assets amid escalating trade tensions.
This came after China retaliated by increasing its tariff rate on US goods to 125 percent.
The instability stemmed from growing apprehension over a potential worldwide trade conflict, driven by heightened ambiguity surrounding President Trump’s tariff policies and Beijing’s reaction later that day.
On Friday, Chinese authorities declared they would no longer “pay attention” to trade developments initiated by the Trump administration, following their announcement of tariff hikes on all American imports to 125 percent, based on state-run media.
“China will lift the additional tariffs on products imported from the US to 125 percent from 84 percent, effective from April 12,” stated the State Council Customs Tariff Commission.
The VIX, a key index measuring expected market fluctuations, surged once again by 7.8 percent, reaching 43.40 by 0930GMT, indicating increasing investor unease regarding financial markets and the broader global economy.
In the United States, equity markets slid again by Thursday’s close, reversing historic gains from the prior day. This came in the wake of Trump’s decision to delay tariffs on all nations for 90 days—excluding China.
Gold, often perceived as a reliable investment during times of market distress, experienced a notable rise.
Its value reached USD3,218.20 for one ounce, increasing 1.3 percent for the day, as market participants moved away from riskier investments in favor of more dependable financial shelters.
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