China, EU launch massive U.S. tariff retaliation

• The blanket 84% Chinese tariffs will be devastating for U.S. farmers, who are major exporters to China. The targeted 21 billion euros of European levies, while smaller, will also hit the agriculture economy.

Between the lines: The U.S. exports about $145 billion in goods to China a year.

• That trade is dominated by oilseeds and grains, per the U.S.-China Business Council.
• Exports to the EU are much larger, north of $370 billion, though Europe's retaliation package is much more targeted than China's broad levy.

Catch up quick: The trade tit-for-tat started when Trump put a 10% tariff on imports from China, alleging it was failing to control the flow of fentanyl out of the country.

• He later doubled that to 20%.
• Subsequently, Trump introduced a reciprocal tariff of 34% on China, which stacked on the drug tariffs. When the Chinese retaliated with a matching levy, Trump added another 50%.

• That means that as of 12:01 a.m. ET Wednesday, the U.S. now charges a 104% tariff on imports from China.

By the numbers: Stocks were broadly lower around the world, though more heavily in Europe and Asia than the United States.

• A plunge in the U.S. Treasury bond market Wednesday morning amplified fears of systemic issues being exacerbated by tariff weakness.

Editor's note: This story has been updated throughout with new details on European tariffs.