The trade war unleashed by President Donald Trump reached a new level on Wednesday, after U.S. tariffs against nearly 60 countries went into effect, including a cumulative rate of 104% on products from China.

Beijing's reaction was swift: China announced that it will increase its own tariffs on U.S. goods, from 34% to 84%, starting Thursday. According to the Chinese Ministry of Commerce, this escalation "seriously infringes on China's legitimate rights and interests", although the Asian giant left the door open for negotiation "through dialogue on an equal footing and with mutually beneficial cooperation".

At the same time, the countries of the European Union approved a first package of trade retaliatory measures that will affect products such as soybeans, motorcycles and beauty products, for an estimated value of 22 billion dollars. The European Commission stressed that these measures "can be suspended at any time" if the United States accepts a "fair and balanced" agreement.

The immediate impact of these decisions was strongly felt in global financial markets. European stock markets suffered falls of close to 4%, the Nikkei index in Japan closed with a loss of 3.93%, while Taipei plummeted by 5.8% and Seoul fell by 1.73%. In contrast, Wall Street opened in green, although investors showed signs of nervousness by abandoning government bonds and the dollar.

Oil prices did not escape the generalized panic either, reaching four-year lows of around 60 dollars per barrel.

In the midst of this tense scenario, Trump tried to send a message of calm from his Truth Social network: "Calm down! Everything is going to be fine," he wrote, assuring that "America will be bigger and better than ever" and encouraging Americans to "buy in" at this time.

The Association of Southeast Asian Nations (ASEAN), whose member Vietnam was targeted with a 46% tariff, called for "courageous action" to confront the threat of the global trade war.

Meanwhile, China took the dispute to the World Trade Organization (WTO). Beijing filed a formal complaint with the body, accusing the United States of "unilateral and coercive" measures that, it charged, violate international trade rules. China vowed to "firmly defend its legitimate rights and interests" and safeguard the multilateral system.

For its part, Europe is seeking to maintain a balance between firmness and negotiation. The EU has been hit by several rounds of tariffs from Washington, including tariffs of 25% on steel and aluminum, plus 25% on cars and 20% on consumer goods. Although Brussels is already working on a broader response, EU officials insist on the importance of reaching a diplomatic agreement to avoid further escalation.

In fact, the EU measures are strategically focused on products originating from U.S. regions that overwhelmingly backed Trump in the last elections, while avoiding hitting sensitive sectors such as bourbon, to protect its own wine and spirits exports.

France and Germany have even raised the possibility of resorting to the "Anti-Coercion Instrument", a tool that would restrict access to the European single market for companies from countries that adopt hostile measures.

In an attempt to keep diplomatic channels open, European Commission President Ursula von der Leyen urged Chinese Premier Li Qiang to "avoid escalation". At the same time, the European Commissioner for Trade, Maros Sefcovic, expressed his confidence that "sooner or later we will be sitting at the negotiating table", despite the fact that efforts so far have not borne fruit.

The warnings, however, are not limited to Brussels or Beijing. U.S. Treasury Secretary Scott Bessent warned European countries that aligning themselves with China "would be like digging their own grave", due to the "dumping" they attribute to China's trade practices.

From the United Nations, Secretary General António Guterres also expressed concern, especially about the impact this trade war could have on the most vulnerable developing nations.

For now, the world watches with uncertainty as the major economic powers trade tariff blows that threaten to further destabilize the global economy.

With information from AFP