China will raise tariffs on US goods to 84 per cent starting Thursday, up from the previously announced 34 per cent, its finance ministry said on Wednesday, intensifying a global trade war triggered by US President Donald Trump's sweeping tariffs. The move follows the implementation of Trump's new round of "reciprocal" tariffs, including punitive 104 per cent duties on Chinese imports. The European Union (EU) is also preparing its own retaliatory measures. The trade clash has rattled global markets, with the S&P 500 suffering its worst losses since the 1950s, US Treasuries tumbling, and the dollar weakening. European shares and US stock futures also fell sharply. Beijing said its trade surplus with Washington was "inevitable" and warned it had the means to continue the fight. China also accused the US at the World Trade Organisation of threatening global stability, calling the situation a dangerous escalation. Meanwhile, China's central bank has intervened to stem pressure on the yuan, instructing major banks to curb US dollar purchases. The EU is expected to approve its first wave of counter-tariffs on Wednesday, targeting a wide range of American goods such as motorcycles, poultry, fruit, wood, and dental floss, with duties reaching up to 25 per cent in staggered phases. Despite market turmoil, Trump has signalled the tariffs could be long-term, while claiming they are forcing other nations to the negotiating table. Attribution: Reuters Subediting: M. S. Salama
