Trump's Trade Wars Deepen As China Retaliates And Markets Fall. Here's What To Know

The trade wars launched by U.S. President Donald Trump have escalated to new heights.

Just days after Trump unveiled sweeping new "reciprocal" tariffs on imports from around the world, China on Friday levied a retaliatory 34 tariff on all U.S. products starting April 10. Stock markets worldwide plummeted, with the S P 500 closing its worst week since COVID-19 upended the global economy in 2020.

Economists warn that the tariffs will raise the prices of products consumers buy each day - from the grocery aisle to car repairs. As businesses face higher costs, some say economies worldwide could see slowed hiring, layoffs and lower incomes down the road - heightening fears about future economic growth and widening inequality.

Meanwhile, Trump has doubled down on his commitment to tariffs , maintaining that his new levies will bring trillions of dollars of investment to the U.S. while also criticizing other countries' retaliatory measures.

Here's what we know about the latest developments.