China’s government issued dual warnings to citizens regarding U.S. travel on Wednesday, citing deteriorating bilateral relations as both nations exchange hefty tariffs on imports.
What Happened: The warnings came shortly after Beijing announced plans to raise reciprocal tariffs on American goods to 84% from 34%, responding to President Donald Trump‘s recent tariff hikes on Chinese products.
“Due to the deterioration of Sino-US economic and trade relations and the domestic security situation in the United States, the Ministry of Culture and Tourism reminds Chinese tourists to fully assess the risks,” China’s tourism ministry stated in an official warning.
The escalating trade conflict intensified earlier this week when Trump implemented sweeping tariffs exceeding 100% on Chinese imports, which initially sent U.S. stock futures plunging.
Why It Matters: Markets staged a historic recovery following Trump’s surprise 90-day reprieve on reciprocal tariffs for non-retaliating countries, with the S&P 500 tracked by SPDR S&P 500 (NYSE:SPY) surging 9.52% and the Nasdaq 100 tracked by Invesco QQQ Trust, Series 1 (NASDAQ:QQQ) rocketing 12.2% – their strongest one-day gains since October 2008.
Gene Munster, managing partner at Deepwater Asset Management, cautioned investors that “we’re not out of the woods yet,” noting that Trump’s effort to “right-size China… will take time and involve some negative headlines.”
China’s retaliatory measures extend beyond tariffs, with Beijing filing a complaint with the World Trade Organization, adding six American companies to its unreliable-entity list, and imposing export controls on 12 U.S. firms that prohibit Chinese suppliers from providing dual-use items.
Read Next:
Image via Shutterstock
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
