U.S. shares tumbled on Thursday as mounting trade tensions with China overshadowed initial relief from President Donald Trump’s earlier decision to delay higher tariffs on America’s trading partners.
The White House confirmed that under the upcoming “Reciprocal Tariff,” taxes on Chinese imports could reach 145 percent, effectively making goods from China two-and-a-half times more expensive than their original import cost.
China vowed to retaliate, joining other countries affected by the steep tariff hike — a move that has heightened fears of a global economic slowdown.
After a surge on Wednesday, U.S. stocks fell sharply across the board. The Dow Jones Industrial Average dropped 2.5 percent, the S&P 500 slid 3.5 percent, and the Nasdaq plunged 4.5 percent, dragged down by underperforming technology stocks.
Microchip Technology and Monolithic Power Systems gave up Wednesday’s gains, sinking 13.6 percent and 13.7 percent, respectively.
Meanwhile, a decision by the China Film Administration to cut the number of U.S. films allowed into Chinese cinemas pushed Warner Bros. Discovery down 12.5 percent.
As investor anxiety over trade grew, gold surged 3 percent to hit an all-time high of $3,171.49, reinforcing its appeal as a safe-haven asset during times of heightened uncertainty.
