High tariffs trigger stock market fluctuations, and Trump is furious as China counters with counter-tariffs on the US.

The US President, Donald Trump, has launched a trade war, and global stock markets continued to fall on Monday. Trump once again targets China and denies the risk of inflation.

President Trump posted a message on his own "truth" social network, calling China the "biggest beneficiary," criticizing China's response to his trade offensive, after he "warned countries increasing tariffs not to respond."

Trump accused nations engaging in economic and trade exchanges with the US of "plundering" the US, thus imposing a general tariff of 10% on all products imported into the US.

The new tax rates increased by Trump will be raised this Wednesday, involving dozens of major trading partners, including a 20% tariff on the EU and a 34% tariff on China. In retaliation, China announced that from April 10th, it would impose a 34% tariff on US imports.

Wall Street had its worst day since 2020 last Friday, with about $6 trillion in market value evaporating over two trading days.

Last Friday's Asian stock markets closed, and today they plunged sharply upon reopening; Hong Kong's Hang Seng Index fell more than 13%, the worst trading day since 1997; Tokyo's Nikkei Index fell by 7.8%.

In Europe, the Euro Stoxx 600 index fell nearly 5% by noon. In just a few days, more than 1.5 trillion euros in market value vanished. For Berlin, the global stock market crash is an "alarm signal," indicating that there are only losers in an escalating trade war.

When asked about the market plunge, Trump remained firm aboard "Air Force One": "Sometimes you have to take medicine to get better."

Trump reiterated on social media on Monday, "There is no inflation," and called on the Federal Reserve to "lower interest rates" once again.

Agence France-Presse cited most economists' expectations that new taxes imposed by the US on imports will accelerate inflation, suppress consumption, and hinder economic growth.

Trump said he had talked with many Europeans, Asians, and people around the world over the weekend, who all urgently hope to reach agreements with the US.

Source: https://www.toutiao.com/article/1828764397700363/

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