FX.co ★ China Stocks Slip as Trump Raises Tariffs

The Shanghai Composite Index decreased by 0.3% to approximately 3,340, while the Shenzhen Component Index declined by 0.6% to 10,450 on Thursday. This downturn marks the end of a two-day upward trend for mainland stocks, prompted by US President Donald Trump's imposition of a 34% reciprocal tariff on China. This move has exacerbated the ongoing trade conflict between the world's two largest economies. The White House further clarified that this 34% tariff is additional to the standing 20% levies, raising the overall tariffs on Chinese goods to a notable 54%. Other significant global economies have also been subjected to substantial duties: the European Union at 20%, Japan at 24%, and India at 26%, with a general 10% base tariff applicable to all countries worldwide. Compounding these market concerns, China recently executed live-fire drills in the Taiwan Strait, escalating geopolitical tensions in the area. The decline was predominantly observed in high-growth sectors including technology, new energy, and consumer stocks.