The escalation of the US-China trade war has sent shockwaves through global markets. The White House's clarification that tariffs on Chinese imports now total 145%, up from the initially announced 125%, triggered a sharp sell-off on Wall Street12. The Dow Jones Industrial Average plummeted by 1,700 points (over 4%), while the S&P 500 and Nasdaq fell by 5% and 6% respectively1. This market turmoil reversed the gains from the previous day's historic rally, which had been fueled by Trump's announcement of a 90-day pause on aggressive tariffs for most nations13.

• China retaliated by raising tariffs on US goods to 84%4

• The US dollar weakened amid the market volatility2

• Concerns about economic repercussions intensified among investors2

• The trade war's impact extends beyond China-exposed firms, affecting the broader market5

China's retaliatory 84% tariff on U.S. goods took effect on April 10, 2025, at 12:01 am CST (04:00 GMT)1. This move came in direct response to President Trump's initial imposition of 104% tariffs on Chinese products, which he later increased to 125%23. The Chinese Ministry of Commerce stated that the U.S.'s escalation of tariffs "seriously infringes on China's legitimate rights and interests and seriously damages the rules-based multilateral trading system"4.

Key points of China's retaliation include:

• Vowing to "fight to the end" against U.S. tariffs3

• Imposing restrictions on doing business with nearly a dozen American companies3

• Launching a new challenge to American tariffs at the World Trade Organization3

• Expectations of bringing forward plans for more economic stimulus to offset tariff impacts1

• The Chinese yuan weakening to its lowest level in 17 years1

These developments have significantly heightened tensions between the world's two largest economies, with potential far-reaching consequences for global trade and economic growth41.

The escalating US-China trade war has sent shockwaves through global commodity markets. Oil prices have experienced significant volatility, with West Texas Intermediate futures surging 9% to $62.74 per barrel1. Gold has also seen a dramatic increase, marking its largest single-day jump in five years with a 2.2% rise to about $3,083 per ounce, driven by Chinese investments in gold-backed ETFs1.

Other commodities have been affected as well:

• Brent crude futures plummeted over 19% to $60.41 per barrel2

• Copper futures and iron ore prices have slumped amid deteriorating demand outlooks2

• Agricultural commodities like soybeans face uncertain futures as trade flows are disrupted3

• Rare earth exports from China may be restricted, potentially impacting technology and manufacturing sectors globally4

These price fluctuations reflect the complex interplay between trade tensions, geopolitical uncertainties, and shifting global demand, highlighting the far-reaching consequences of the US-China tariff war on commodity markets worldwide.