Market Turmoil Follows Fitch's Downgrade of China's Credit Rating

In a move that has sent shockwaves through international markets, Fitch Ratings downgraded China's national credit rating from A+ to A on April 4, marking the first such downgrade in 18 years. This development has intensified the already tense trade relations between China and the United States.

Trump's Tariff Threats Add Fuel to the Fire

President Trump's announcement on Truth Social about imposing an additional 50 percentage points of tariffs on Chinese goods, unless China retracts its 34% retaliatory tariffs, has caused wild swings in the New York stock market. The Dow Jones index experienced unprecedented volatility, with the volatility index (VIX) surging to its highest level since August of last year.

China's Firm Stance Against US Tariffs

China's Ministry of Commerce has firmly opposed the US's threat to increase tariffs, warning of resolute countermeasures. The spokesperson criticized the US's approach as adding "mistake to mistake" and emphasized China's readiness to confront any escalations.

Global Repercussions of US-China Trade Tensions

The ongoing trade tensions have had a global impact, with South Korea's won closing at its lowest level since March 13, 2009, and Japan's Nikkei 225 index rebounding with a rise of 6.03%. Meanwhile, Taiwan's TAIEX index and major Southeast Asian stock markets saw significant drops due to tariff concerns.