US-China Trade War Escalates: Tech, Oil, and Banking Stocks Plunge
Tensions between the world’s two largest economies intensified Friday, triggering a sharp sell-off in U.S. markets after China retaliated against U.S. tariffs with steep duties of its own. Chipmakers, oil giants, and banks were hit hardest, reflecting deep investor concerns over global economic stability.
China Responds with Heavy Tariffs
In a direct response to President Donald Trump’s recent imposition of 34% tariffs on Chinese imports, China announced its own 34% tariffs on American goods, effective April 10. Beijing also introduced new export restrictions on rare earth elements and added several U.S. firms to its “unreliable entities” list, granting the government the power to impose further sanctions.
Tech Giants Under Pressure
Consumer tech firms with strong exposure to China suffered major losses:
- Tesla stock dropped 8%, while Apple fell 4%.
- Analysts noted that although many tech firms source components locally in China, disruptions are likely to increase costs.
- Tesla is already locked in a price war with local Chinese competitors, and higher production costs could dampen demand further.
Chipmakers Feel the Impact
Despite limited direct electronic exports to China, U.S. semiconductor stocks dropped significantly:
- Intel, Qualcomm, and Applied Materials lost between 5% and 8%.
Oil Majors Slide Amid Global Trade Worries
- ExxonMobil and Chevron saw shares decline over 5%.
- Oilfield services giant SLB plunged 10%, while Marathon Petroleum dropped 6%.
- The ongoing trade tensions combined with expectations of higher OPEC+ output put additional pressure on oil prices.
Banks Decline on Economic Uncertainty
Financial stocks continued to slide amid fears the trade conflict would dampen consumer confidence, reduce spending, and lower demand for loans. The Dow Jones Industrial Average lost 2,000 points over two days in a major downturn.
Platinum and Commodities React
Platinum prices fell 4% in spot trading, settling at $914.23 per ounce.
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