It fell globally after China's retaliation for the tariffs.

It fell globally after China's retaliation for the tariffs.

Global stocks fell further after China responded to US import taxes with retaliatory tariffs. 

Major US indices opened down about 3 percent, while European markets fell about 4 percent, with some companies seeing double-digit declines in their share prices.

This decline adds to the significant declines witnessed in markets on Thursday, as markets continued to respond to the uncertainty raised by US tariffs. 

Traders are concerned that US tariffs will lead to higher prices and negatively impact growth in the United States and abroad.

China's imposition of 34 percent tariffs on US goods effective April 10 has heightened fears of a protracted trade war.

The Chinese Ministry of Finance announced that US tariffs on Chinese products "are not subject to international trade rules." When US President Donald Trump announced the new tariffs on Thursday, the total number of Chinese employees in the country had reached 54, including those who were deported and subsequently. This makes China one of the countries most affected by US tariffs.

Trump's new tariffs on China: What will be their impact

In the United States, the tech-heavy Nasdaq opened down 2.8 percent on Friday, but it has entered what is known as a "bear zone"—meaning it could close more than 20 percent lower than its recent peak in December. The Dow Jones Industrial Average fell more than 2 percent, while the S&P 500 fell about 3 percent.

Shares of tech giant Apple fell more than 3 percent, declining 12.5 percent over two days. The company relies on China for the production of a large portion of its products, which faces 54 percent US tariffs. In Europe, the FTSE 100 index fell 4.6 percent, while Germany's DAX index fell 4.4 percent.

Russ Mould, investment director at AJ Bell, said the "sustained selling" continued despite investors' "hope that the pain will subside." He said, "There are so many factors at play, making it difficult to understand the situation as an investor." He added, "With countless sectors affected by tariffs, it's hard to know where to begin to understand the situation."

Jane Sydenham, investment director at Rathbones, said that bank stocks, companies with supply chains exposed to tariffs, and technology stocks are all experiencing declines. She added that investors were buying safe-haven assets, including gold and government bonds.

According to Trading Economics, gold prices surpassed $3,121 per ounce on Friday, approaching record highs, despite the fact that this is not permitted. Ms. Sydenham stated that China is "under intense pressure" to retaliate against the 54% tariffs, which most companies are already experiencing, even though its economy is large enough to take such action.

She added that countries with smaller economies need to be more cautious. Leah Fahey, a China economist at Capital Economics, said that China has "responded strongly" to the US tariffs. She added that this "aggressive and escalatory" response "makes a near-term agreement to end the trade war between the two superpowers highly unlikely."

However, the US Dollar Index, which measures the value of the greenback against six major currencies, fell to $1.90 on Thursday, its largest decline since November 2022, having fallen $0.35 on Friday. Oil prices are being specifically targeted amid concerns that central bank investors may be slowing economic growth and the trade agreement.

Brent crude prices fell by more than 6% to $65.35. After the implementation of the IMF's general crystal ball, Anna Georgieva, the new central authorities "clearly pose a threat to the global economy in light of the global developments." She emphasized that the IMF is still assessing the "macroeconomic impact" of these measures, which could further damage the global economy.