Shanghai stocks suffered their steepest drop in years, with the Composite Index falling 7.3% after US President Donald Trump threatened an additional 50% tariff on Chinese imports. At one point, losses topped 8%. The move reignited fears of a full-blown trade war, with Beijing vowing to “fight to the end” and announcing 34% retaliatory tariffs on US goods. Market analysts warned that the escalating standoff between the world’s two largest economies could trigger global recessionary pressures, as investor confidence crumbles under policy unpredictability and intensifying cross-border tensions.


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