13-10-2025

US-China Trade Tensions Escalate, Markets React Negatively

Date: 13-10-2025
Sources: bbc.com: 1 | cnbc.com: 5 | edition.cnn.com: 1 | nytimes.com: 1
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Source: edition.cnn.com

Image content: The image depicts the entrance to the Hong Kong Stock Exchange, featuring a large glass building with a prominent sign displaying the exchange's name in cursive script. In the foreground, two bronze bull and bear statues are positioned facing each other, surrounded by a fountain and a small pool of water, symbolizing the market's volatile nature. The scene is set against a backdrop of a modern cityscape, with tall buildings and flags visible in the distance.

Summary

The US and China are engaged in a heated trade dispute, with the US threatening to impose new tariffs on Chinese goods in response to China's tightening controls on rare earth exports. This has led to a significant decline in global markets, with Asian stocks plummeting and European markets experiencing mixed reactions. The situation remains uncertain, with experts divided on the potential outcomes.

Key Points

  • US threatens to impose 100% tariff on Chinese goods
  • China accuses US of 'double standards' in trade dispute
  • Global markets react negatively to escalating trade tensions

Articles in this Cluster

China accuses US of 'double standards' over tariff threat

China has accused the US of 'double standards' after US President Donald Trump threatened to impose a 100% tariff on Chinese goods. China's commerce ministry spokesperson said that the US was 'not playing by the rules' and that China was not afraid of a trade war. The threat comes after China tightened its rules on rare earths exports, which Trump claimed was an attempt to 'hold the world captive'. The comments have rattled financial markets, with the S&P 500 share index closing down 2.7% on Friday. The move has renewed fears of a trade war between the two countries, which had previously agreed to drop triple-digit tariffs on each other's goods in May.
Entities: China, US, Donald Trump, Xi Jinping, rare earthsTone: negativeSentiment: negativeIntent: inform

Asia markets: Hang Seng Index, CSI 300, U.S.-China trade tensions

Asia-Pacific markets fell on Monday due to renewed U.S.-China trade tensions, with Hong Kong's Hang Seng index declining 3.41% and mainland China's CSI 300 trading 1.76% lower. China accused the U.S. of a 'textbook double standard' after President Donald Trump vowed to impose new tariffs on Chinese imports. Despite the tensions, some investors see this as an opportunity to buy into Chinese stocks, which are considered cheap. China's exports grew 8.3% in September, beating economists' estimates. The U.S. major averages declined on Friday, with the Dow Jones Industrial Average closing down 1.9%.
Entities: Asia-Pacific markets, China, U.S., Hong Kong, Hang Seng indexTone: neutralSentiment: negativeIntent: inform

China's market rally faces test as U.S. trade rift flares anew

The article discusses how the resurgence of U.S.-China trade tensions is threatening to derail China's stock market rally. After months of relative calm, fresh warnings from Washington over China's rare earth export controls and renewed trade tensions have sparked fears of a renewed tit-for-tat cycle. Chinese shares had recently rallied to a multi-year high on expectations of government stimulus and foreign capital inflow, but the possibility of the rally continuing is predicated on stability in geopolitical risk, especially on trade. Analysts warn that sentiment could quickly unravel with the return of tariff rhetoric, and both the CSI 300 and Hang Seng Index lost over 2% on Monday. Experts predict that a renewed trade confrontation could lead to a deep recession or depression if neither side blinks.
Entities: China, U.S., Donald Trump, Xi Jinping, CSI 300Tone: negativeSentiment: negativeIntent: inform

CNBC Daily Open: Stocks rise and fall when Trump gives the word

The article discusses how U.S. President Donald Trump's announcement of new tariffs on China caused a significant drop in stock markets, wiping out almost $800 billion from major tech firms. The tariffs were imposed in response to China's tightening exports of rare earth metals. Despite this, Chinese exports growth in September beat expectations. The article also touches on other news, including the release of Israeli hostages and Morgan Stanley's report that China will remain a leader in robotics. The overall tone is informative with a hint of caution regarding the trade war's impact on markets.
Entities: Donald Trump, China, United States, OpenAI, NvidiaTone: neutralSentiment: negativeIntent: inform

European markets on Mon Oct 13: Stoxx 600, DAX, CAC, FTSE

European stocks opened higher on Monday as traders monitored the escalating trade dispute between the U.S. and China. The Stoxx 600 index rose 0.3%, with the FTSE, DAX, CAC 40, and FTSE MIB also seeing gains. The trade tensions began after U.S. President Donald Trump threatened to impose additional tariffs on Chinese imports in response to China's export controls on rare earth minerals. However, Trump later suggested that trade relations might improve, while China vowed not to be intimidated by a potential trade war. Investors are also awaiting earnings reports from major companies like ASML, LVMH, and Nestle, as well as updates from the IMF and World Bank annual meeting.
Entities: European stocks, U.S., China, Donald Trump, Stoxx 600Tone: neutralSentiment: negativeIntent: inform

Stock market today: Live updates

The US stock market rebounded on Sunday night after President Donald Trump said trade relations with China 'will all be fine.' Dow Jones Industrial Average futures rose by 358 points, or 0.8%, S&P 500 futures climbed 1%, and Nasdaq-100 futures rose 1.2%. Trump's comments on his Truth Social platform eased investor concerns after a major sell-off on Friday due to his threat to impose a 'massive increase of tariffs' on China. Vice President JD Vance echoed Trump's sentiments, stating that the US will negotiate with China if Beijing is 'willing to be reasonable.' The market is also awaiting earnings reports from major financial institutions this week. However, concerns remain due to the ongoing government shutdown and its potential impact on the economy.
Entities: Donald Trump, China, US, JD Vance, Dow Jones Industrial AverageTone: neutralSentiment: positiveIntent: inform

Fears of renewed US-China trade tensions send Asian stocks south | CNN BusinessClose icon

Fears of renewed US-China trade tensions have sent Asian stocks plummeting, following US President Donald Trump's threat to impose new triple-digit tariffs on Chinese imports. Trump's move was in response to China's tightening control on rare earths, a critical mineral essential in electronics, automobiles, and semiconductors production. China's restrictions could deal a huge blow to East Asian economies, such as Japan, South Korea, and Taiwan. Major Asian stock markets sank on Monday, with Hong Kong's Hang Seng Index falling 2.4%, China's Shanghai composite index dropping 1.6%, and South Korea's KOSPI losing 1.5%. The US stock futures rose on Sunday after Trump hinted at backing off from new China tariffs, but the situation remains uncertain.
Entities: Donald Trump, China, US, Hong Kong, JapanTone: neutralSentiment: negativeIntent: inform

Asia Markets Fall After Trump Threatens New Tariffs on China - The New York Times

Asian markets fell on Monday after President Trump threatened to impose higher tariffs on Chinese imports and cancel a meeting with China's leader, Xi Jinping. The Hang Seng index in Hong Kong dropped over 2.5%, while benchmark indexes in South Korea and Shanghai fell about 1%. Trump's threats followed China's announcement that it would curb exports of rare-earth minerals needed for high-tech products. The move raised concerns of a potential trade war between the two economies. Experts are divided on whether Trump's threats are serious or just a negotiating tactic.
Entities: Donald Trump, Xi Jinping, Asia, China, United StatesTone: negativeSentiment: negativeIntent: inform