China's launches drills around Taiwan to "severely punish" the island's pro-independence leader, as the U.S. boosts its war footing in Japan to deter Chinese "aggression."

China's military concluded two-day war games around Taiwan in which it held long-range, live-fire drills in the East China Sea, marking an escalation of exercises around the island.

Alongside Wall Street, global stock markets took a beating after Trump unveiled a 10% baseline tax on all imports, as well as higher tariff rates for some major trade partners.

President Trump held up a chart in the Rose Garden outlining some of the larger tariff rates he will charge some nations. China will be charged a 34% tariff, the chart said, the European Union will get a 20% levy,

China said on Thursday that it will defend its "legitimate rights and interests" after the United States revealed what it called "reciprocal tariffs" targeting more than 60 countries. Newsweek has reached out to the White House for comment by email.