ISTANBUL, April 5 (Bernama-Anadolu) -- US stocks ended the week significantly lower as the trade war intensified after China retaliated to President Donald Trump’s reciprocal tariffs that were announced earlier this week, Anadolu Ajansi reported.
China on Friday imposed a 34 per cent additional tariff on all imports from the US, a move seen as a tit-for-tat against Trump's 34 per cent reciprocal tariffs on China.
The tariffs, set to go into effect next Thursday, will affect all US products imported to China, according to a Customs Tariff Commission of the State Council statement.
It called the US' reciprocal tariffs one-sided "bullying," adding that the levies violate international trade rules and harm China's rights and interests.
On counter-tariffs from China, Trump said Beijing has "panicked" in its trade policy response to his administration's recent tariff actions.
“CHINA PLAYED IT WRONG, THEY PANICKED - THE ONE THING THEY CANNOT AFFORD TO DO!” Trump wrote on Truth Social.
Meanwhile, Fed Chair Jerome Powell said the tariffs were "larger than expected" and would result in higher inflation and slower growth.
Powell made it clear that the Fed will not make rushed decisions in monetary policy, according to Anadolu.
"It is too soon to say what will be the appropriate path for monetary policy," he said. "We will continue to carefully monitor the incoming data, the evolving outlook, and the balance of risks. We are well positioned to wait for greater clarity before considering any adjustments to our policy stance.”
On the macroeconomic data side, the US added 228,000 jobs in March, way above the forecast of 137,000.
On the other hand, the unemployment rate rose to 4.2 per cent higher than estimates of 4.1 per cent.
The Dow dove 5.50 per cent, or 2,231.07 points, to close the week at 38,314.86, the largest drop since June 2020, as it is entering correction territory.
The S&P 500 slipped 5.97 per cent, or 322.44 points, to close at 5,074.08, the biggest fall since March 2020, also off more than 17 per cent, from its recent high.
The Nasdaq fell 5.82 per cent or 962.82 points, to 15,587.79, taking the index down 22 per cent from its December record, entering into a bear market.
The sharp two-day drop in indices caused losses of more than US$6 trillion, while nearly US$10 trillion has been wiped from US markets since Trump's inauguration.
It reported the VIX Index, also known as the “fear index," rose by 50.93 per cent to 45.31.
-- BERNAMA-ANADOLU
