In a dramatic turn of events, the White House has officially enforced a 104% additional tariff on Chinese goods, effective from 12:00 PM ET today, citing China's failure to remove its existing 34% tariff on U.S. imports. The announcement, initially reported by Fox News, sent shockwaves across global markets.

Earlier in the day, markets were buoyed by optimism as China’s combative rhetoric—"vowing to fight until the end"—triggered a sharp rally. The S&P 500 surged over 4.5%, with investors initially betting on a potential resolution or strategic negotiation. However, the mood quickly reversed as the White House confirmed that the tariffs were not only going into effect at noon but would also extend further at 12:01 AM ET the following day with full reciprocal measures.

Within hours, the S&P 500 plunged by over 230 points, erasing nearly the entire day's gains and triggering a sharp $1.5 trillion wipeout in market value. This rapid reversal highlighted investor fears of a full-blown trade war between the world's two largest economies.

Tech giants bore the brunt of the selloff, with Apple Inc. ($AAPL) dropping over 3.5% shortly after the White House reiterated President Trump’s belief that “the U.S. has the capability to make iPhones domestically.” As panic spread, Apple's losses deepened to -8% in just three hours.

The sharp market volatility reflects deepening concerns among investors that a prolonged tariff battle could significantly disrupt global supply chains, squeeze corporate margins, and hurt consumer sentiment.

Disclaimer:

This article is for informational purposes only and does not constitute investment advice. Stock market investments are subject to market risks, and readers should consult with a certified financial advisor before making investment decisions. The views expressed are based on current news developments and may change as more details emerge. Always conduct your own research before making any financial commitments.