China Retaliates With 34% Tariffs On US Goods

For a few hours it seemed like we could even stabilize, if only a bit, ahead of today's scheduled main event: the March jobs report at 8:30am ET. And then all hell broke loose at 6:08am when this Bloomberg headline hit:

• *CHINA ANNOUNCES EXTRA 34% TARIFFS ON US GOODS

In other words, far from seeking concessions, Beijing is now looking to escalate the trade war further, and forcing Trump to double down with even harsher retaliatory tariffs on China of his own, which at this point may push the blended tariff rate on Chinese goods above 100%.

What followed instantly was sheer, unadulterated liquidation panic:

• *S&P 500 FUTURES DECLINE 4.1%, NASDAQ 100 FUTURES DOWN 4.6%
• *COPPER PLUNGES MORE THAN 5%, BIGGEST LOSS SINCE JULY 2022
• *US 2-YEAR YIELD FALLS TO 3.498%, LOWEST SINCE SEPTEMBER 2022
• *BRENT OIL DROPS BELOW $65 FOR FIRST TIME SINCE AUGUST 2021
• *US CREDIT RISK GAUGE JUMPS MOST SINCE REGIONAL BANKING CRISIS
• *STOXX EUROPE 600 INDEX FALLS 5.2%, MOST SINCE MARCH 2020