New York: US stocks opened Wednesday up even though the EU and China announced retaliatory tariffs against the US.
According to Anadolu Agency, on April 2, US President Donald Trump announced the imposition of sweeping tariffs on over 180 countries, ranging from 10% to 50%. In retaliation, China raised additional tariffs on all US imports to 84%, further escalating the trade war with Washington. This move came after the US increased tariffs on Chinese imports to 104%, effective today.
“The US escalation of tariffs against China is a mistake on top of a mistake; it seriously infringes upon China’s legitimate rights and interests and gravely undermines the rules-based multilateral trading system,” stated the Chinese State Council’s Customs Tariff Commission, as reported by the state-run Global Times.
In response to the new US tariffs, EU member states voted in favor of European Commission trade countermeasures, which are set to go into force next Tuesday. These countermeasures are anticipated to impact many imports, including motorcycles, agriculture, and clothing worth approximately £21 billion ($23 billion).
Despite the ongoing tariff tensions, the US stock market showed resilience. The Dow Jones Industrial Average gained 148.33 points, or 0.39%, reaching 37,793.92 by 9.55 am EDT (1355GMT). The S and P 500 increased by 34.86 points, or 0.72%, to 5,020.74, and the Nasdaq composite surged by 244.91 points, or 1.5%, to 15,499.87. Meanwhile, the VIX volatility index, often referred to as the “fear index,” fell to 49.52.