China has announced an 84% tariff on all US imports, up from 34%, in retaliation to Donald Trump’s increased tariffs on Chinese imports (now 104%). This move escalates tensions in the ongoing trade war and sent global stock markets into further decline. Global oil prices also fell, adding to fears of a recession. However, US markets later showed some recovery after treasury secretary Scott Bessent hinted at potential trade agreements with allies. Trump is encouraging businesses to move to the USA, claiming zero tariffs and favourable conditions for companies. While China has expressed reluctance to engage in a full-scale trade war, it said it needed to protect its economy. Despite concerns over higher inflation, Trump remains optimistic about revitalising US manufacturing. He has now announced a pause in imposing the harsher tariffs, which has encouraged the stock markets. For a view about what this pause will mean, see