FX.co ★ China Stocks Slip as Trump Raises Tariffs

On Thursday, the Shanghai Composite Index decreased by 0.24% to settle at 3,342 points, while the Shenzhen Component experienced a sharper decline, falling 1.4% to 10,365 points. This downturn interrupted a two-day market rally emerging as a response to an announcement by U.S. President Donald Trump regarding the implementation of a 34% reciprocal tariff on Chinese imports, further intensifying the trade tensions between the world's two largest economies. The White House explained that this new 34% tariff will be in addition to the existing 20% duties, effectively elevating the cumulative tariffs on Chinese goods to 54%. In retaliation, China's Ministry of Commerce indicated that it is developing countermeasures to safeguard its economic interests, all while urging the U.S. administration to repeal its unilateral tariffs and engage in equitable trade negotiations. The technology and new energy sectors bore the brunt of the market's losses, with significant declines recorded by Luxshare Precision, which fell 10%, Eoptolink Technology down 6.8%, Victory Giant decreasing by 9.5%, Contemporary Amperex slipping 2.4%, and Sungrow Power dropping 7.3%.