Fact Check: Global times article “U.S. Stocks Drop”

The article titled “U.S. stocks drop as tariff sell-off resumes”, published by a Chinese state-linked newspaper, reports on a market downturn in the United States following the White House’s announcement of a dramatic tariff hike on Chinese goods. The article links the market fall directly to U.S. economic policy decisions under the leadership of President Trump, emphasizing a new 104% tariff rate on Chinese imports and a market-wide panic.

MISLEADING AND POLITICALLY FRAMED

While the market drop and volatility are factual, the article contains exaggerations, selective omissions, and framing techniques consistent with Chinese economic propaganda and anti-U.S. narrative construction.

Breakdown of Key Facts vs. Misleading Elements

What’s True:

• U.S. stock markets did experience a downturn on the day mentioned.

• The Dow, S&P 500, and Nasdaq all fell, with the tech sector leading the losses.

• There is confirmation that the White House is advancing a new tariff plan targeting Chinese imports.

• The VIX (volatility index) did spike, and bond yields increased due to market reactions.

These data points align with publicly available financial information from sources like FactSet, CNBC, and Bloomberg.

Propaganda & Framing Analysis

Emotional Framing with Crisis Language

• The article repeatedly uses alarmist language:

  “Sharply lower,” “plunged,” “rattled investor confidence,” “market panic.”

• This framing is designed to create the impression that the U.S. economy is spiraling, aligning with China’s state narrative that the West, particularly the U.S., is unstable and reactive.

Fact Check Insight:
The market’s drop was notable but not historic. Similar single-day selloffs are common in volatile macroeconomic cycles.

Exaggerated Tariff Figures and Context Omission

• The article claims:

  “The proposed action would raise the overall tariff rate on imports from China to 104 percent.”

Reality Check:
No official U.S. government documentation or statement confirms a total 104% tariff rate. That figure is speculative and likely includes cumulative or outlier categories, not the average rate.
Moreover, no mention is made of exemptions, trade waivers, or phase-in timelines, which are often part of real-world tariff implementation.

Omission of U.S. Strategic Motives and Global Context

• The article fails to explain:

  • That the U.S. tariff strategy is part of a larger policy shift to reduce dependency on Chinese supply chains.

  • The bipartisan support in the U.S. for tougher trade positions on China.

  • The fact that other nations (EU, Japan, India) are also reevaluating trade dependencies on China post-COVID and post-Ukraine war.

Why it matters:
By omitting this context, the article frames the U.S. as isolated and irrational, and hides China’s role in trade tensions.

Selective Use of Economic Voices

• The only quote featured comes from Nancy Tengler, who states:

  “The bond market’s been telling us it hasn’t been panicking…”

Yet, her quote is placed after a flood of negative data, creating a contradiction that minimizes her reassurance.

Framing Technique:
This is a common propaganda tactic — include a dissenting voice, but bury it after paragraphs of doom-and-gloom to maintain narrative consistency.

Propaganda Goal: Undermine U.S. Market Confidence

The article appears to be strategically written to:

• Suggest that Trump’s trade strategy is reckless.

• Paint the U.S. economy as volatile and self-destructive.

• Reinforce the Chinese Communist Party’s narrative that U.S.-led globalization is collapsing.

This fits squarely within the “declining America” propaganda theme regularly used in Chinese state media (source: China Media Project, 2024).

ECONOMIC BACKDROP: What’s Really Happening?

• The Biden-Trump trade transition period has seen an acceleration in protectionist policies.

• However, despite tariffs, U.S. GDP growth in Q1 2025 remained steady at 2.4%, and unemployment stands at 3.8% (source: U.S. Bureau of Labor Statistics, March 2025).

• Apple’s stock, while volatile, remains one of the most held global equities and has a history of rebounds after corrections.

• The Cboe Volatility Index (VIX) at 53 is elevated, but has previously crossed 80 during COVID—current levels signal concern, not collapse.

✅ Fact Check Summary Table