Global stocks are experiencing instability due to China's increase in retaliatory tariffs on U.S. imports to 125%, leading to concerns about an escalating trade dispute.

China raised its tariffs from 84% on U.S. imports shortly after President Donald Trump announced that China would not be included in the 90-day tariff pause. Overall, China now faces a 145% tariff on U.S. imports.

The China State Council Tariff Commission stated that there is currently limited market demand for U.S. goods in China due to the high tariff levels. They also warned that if the U.S. continues to impose tariffs on Chinese goods, China will respond accordingly.

Despite the fluctuations in stock futures, U.S. markets are showing a slight upward trend after experiencing ups and downs in response to the tariff news. On the other hand, the dollar is weakening against major currencies and the 10-year Treasury yield is declining.