China Imposes 34% Retaliatory Tariff on All US Goods; $6.6 Trillion Two-Day Market Loss — Largest in History

China's Ministry of Finance announced on April 4 a sweeping 34% retaliatory tariff on all goods imported from the United States, effective April 10, 2026 — a direct and escalatory response to Trump's April 2 tariff expansion. The announcement triggered the second and worst day of the historic two-day market crash, with the S&P 500 losing 5.97%, the Dow Jones falling 5.5% (−2,231 points) and entering correction territory, and the Nasdaq Composite declining 5.8% and entering a bear market (down 20% from recent peak). Over the two-day combined session (April 3–4), more than $6.6 trillion in US market capitalization was wiped out — the largest two-day loss in stock market history, exceeding COVID-19 crash losses. European markets were severely impacted: the pan-European Stoxx 600 fell 4.5%, with European banking stocks collapsing 9.5% on fears of loan losses and reduced global trade financing. China's retaliatory tariff brings the US-China bilateral tariff rate to its highest levels since the May 2025 truce reduced tariffs from 145% to ~30%. With the new 34% Chinese retaliatory measures, US exporters face approximately 64% average duties in China across all goods. Goldman Sachs raised its 12-month US recession probability to 35% (from 30%), while JPMorgan maintained its 60% recession probability and warned the combined shock — oil supply disruption plus tariff escalation plus weak labor market — now represented a genuine Q2–Q3 2026 recession window.