US imposes 12% tariff on EU, Japan; China counters with up to 34%

US President Donald Trump's tariffs on dozens of economies went into effect Wednesday, escalating the global trade war and causing market volatility.

The new tariffs increased rates to 12.01% for imports from major trading partners like the EU and Japan, while Chinese goods now face a staggering 104% tariff.

China vowed to fight back with retaliatory measures, imposing its own tariffs of up to 34% on US goods effective Thursday morning local time.

Markets in Asia saw significant declines, with Hong Kong plunging over three percent and Japan's Nikkei dropping 2.7%, while oil prices fell below $60 per barrel for the first time since April 2021.

European leaders have called for stability and urged both sides to avoid further escalation, as the EU plans its response to new US tariffs next week.

Despite the economic turmoil, Trump maintains that his policies will revive America's manufacturing base, though many experts question their effectiveness in achieving this goal.