China's retaliation against Trump's tariffs dominated the day, announcing 34% counter-tariffs on US goods around 10:45 AM. Markets responded dramatically with the DAX plunging 5%, extending the previous day's losses. Trump briefly signaled negotiation willingness in the morning, prompting speculation about a potential retreat, but these hopes faded as the trade war escalated.
By afternoon, reports emerged of alliances forming against Trump's measures, with one US state planning independent action and the EU considering countermeasures against key American industries. Analysts increasingly framed China as strategically positioning itself as the reliable global trading partner while Trump undermines the rules-based order.
Other significant developments included South Korean President Yoon's impeachment, the discovery of a woman killed during a prison visit to her husband, and Mats Hummels announcing his retirement from professional football.