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 Asian shares sank Friday after U.S. stocks gave up much of their historic gains from the day before. The deepening worries over President Donald Trump’ s trade war initially helped pull Japan’s Nikkei 225 share index down 5.6%. By mid-morning in Tokyo, it was down 4.7% at 32,969.95. The yen surged against the U.S. dollar, which also lost value against the euro. One dollar bought 143.48 Japanese yen, down from about 146 yen a day earlier. The euro rose to $1.1305 from $1.1195. South Korea's Kospi fell 1.6% to 2,400.34, while in Australia, the S&P/ASX 200 shed 2.1% to 7,552.10. Investors are viewing Trump's decision to view a 90 day delay on higher tariffs for most countries as a ploy, not a pivot, Stephen Innes of SPI Asset Management said in a commentary. “That’s the market hitting the brakes, hard. The sugar high from Trump’s tariff pause is fading fast, and Asia’s about to feel the comedown. The champagne’s flat, the party’s over, and the tape is twitching,” he wrote. Asian markets rise; Nikkei jumps 6.5% amid tariff uncertainty On Thursday, the S&P 500 tumbled 3.5%, slicing into Wednesday’s surge of 9.5% following Trump’s decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average dropped 1,014 points, or 2.5%, and the Nasdaq composite tumbled 4.3%. But China announced more countermeasures against the United States and losses for U.S. stocks accelerated after the White House clarified that the United States will tax Chinese imports at 145%, not the 125% rate that Trump had written about in his posting on Truth Social Wednesday, once other previously announced tariffs were included. The drop for the S&P 500 exceeded 6% at one point. All told, the S&P 500 fell 188.85 points Thursday to 5,268.05. The Dow Jones Industrial Average dropped 1,014.79 to 39,593.66, and the Nasdaq composite sank 737.66 to 16,387.31. “Trump blinks,” UBS strategist Bhanu Baweja wrote in a report about the president’s decision on tariffs, “but the damage isn’t all undone.” China, meanwhile, has been seeking to join forces with other countries in apparent hopes of forming a united front against Trump. The world’s second-largest economy is also ramping up its own countermeasures to Trump’s tariffs. The stock price of Warner Bros. Discovery, the company behind “A Minecraft Movie,” dropped 12.5% for one of Wall Street’s sharpest losses after China said Thursday it will “appropriately reduce the number of imported U.S. films.” The Walt Disney Co.’s stock sank 6.8% A spokesperson for the China Film Administration said it is “inevitable” that Chinese audiences would find American films less palatable given the “wrong move by the U.S. to wantonly implement tariffs on China.” That was after Trump and his Treasury secretary, Scott Bessent, sent a clear message to other countries Wednesday after announcing their pause on tariffs for most countries: “Do not retaliate, and you will be rewarded.” The European Union said Thursday it will put its trade retaliation measures on hold for 90 days and leave room for a negotiated solution. Asian markets fall as Trump's tariffs roil global trade Thursday’s swings also hit the bond market, which has historically played the role of enforcer against politicians and economic policies it deemed imprudent. It helped topple the United Kingdom’s Liz Truss in 2022, for example, whose 49 days made her Britain’s shortest-serving prime minister. Earlier this week, big jumps for U.S. Treasury yields had rattled the market, so much that Trump said Wednesday he had been watching how investors were “getting a little queasy.” Several reasons could have been behind the sharp, sudden rise in yields. Hedge funds may have sold Treasurys in order to raise cash, and investors outside the United States may be dumping their U.S. government bonds because of the trade war. Regardless of the reasons behind it, higher Treasury yields crank up pressure on the stock market and push rates higher for mortgages and other loans for U.S. households and businesses. The 10-year Treasury yield had calmed following Trump’s U-turn on tariffs, dropping all the way back to 4.30% shortly after the release of a better-than-expected report on inflation Thursday morning. That’s after it had shot up to nearly 4.50% Wednesday morning from just 4.01% at the end of last week. As Thursday progressed, though, the 10-year Treasury yield climbed once again and reached 4.40%. It was trading at 4.39% early Friday. Asian markets crash; Nikkei plunges nearly 8% In other dealings early Friday, U.S. benchmark crude oil lost 37 cents to $59.70 per barrel in electronic trading on the New York Stock Exchange. Brent crude, the international standard, fell 30 cents to $63.03 per barrel.

As President Donald Trump ramps up his trade war with China, he is also straining ties with traditional U.S. allies who might have otherwise bolstered America's position in the standoff between the world's two largest economies. For years, American policymakers—including Trump—have sought to shift U.S. economic and strategic focus toward countering China’s growing global influence. However, nearly three months into his second term, Trump’s "America First" tariffs and budget reductions may be creating a major opening for Beijing to sidestep U.S. pressure. This week, Trump intensified his trade offensive by raising tariffs on Chinese imports to an extraordinary 145%. At the same time, he temporarily halted tariffs on other nations' goods for 90 days following a sharp downturn in the stock market. Still, the back-and-forth approach has disrupted global trade and damaged Washington's relations with long-standing partners. While Trump promotes a protectionist agenda, China is broadcasting a contrasting message: it promises wider market access and positions itself as a source of global economic stability. Beijing, now directly targeted by Trump’s tariff strategy, is maneuvering to benefit from the geopolitical shift, seizing opportunities created by U.S. isolationism to expand its influence and strengthen ties with other global players. “The world must embrace fairness and reject hegemonism,” China has stated—an implicit criticism of U.S. trade policy. In recent months, Chinese leaders have engaged with their counterparts from the EU, South Korea, Japan, and other nations, appealing for unity among countries hit by U.S. tariffs. China reiterated its commitment to global engagement, stating: “As the world’s second-largest economy and a major consumer market, China remains committed to further opening, regardless of global uncertainties.” U.S. Tariff Policy Sparks Global Reaction Trump’s aggressive tariff campaign follows his withdrawal from international institutions such as the World Health Organization and the dismantling of U.S. agencies like USAID and the U.S. Agency for Global Media. These moves have fueled concerns that Washington is surrendering influence to Beijing. China reaches out to others as Trump layers on tariffs Rep. Raja Krishnamoorthi, the top Democrat on the House Select Committee on the Chinese Communist Party, criticized the approach: “Rather than reinforcing alliances to counter China, the Trump administration is turning its back on the partnerships that have underpinned U.S. strength and security for decades.” Trump’s selective tariff pause—excluding China—highlights the administration’s desire to isolate Beijing. But White House press secretary Karoline Leavitt defended the policy, claiming, “Rather than drifting toward China, countries are reaching out to the United States because they rely on our markets.” Commerce Secretary Howard Lutnick confirmed that building international coalitions is not part of Trump’s strategy. “The president is focused on securing the best deals for America individually,” he said. Beijing Eyes Strategic Gains Despite the turbulence, Beijing hasn’t yet fully capitalized on the opening, according to Josh Lipsky of the Atlantic Council’s GeoEconomics Center. He noted that both the U.S. and China are so entrenched in their trade conflict that other countries have become secondary considerations. China's persistent overcapacity in manufacturing may also limit its ability to forge new economic alliances. Gabriel Wildau of Teneo noted that Trump's partial tariff suspension appears aimed at further isolating China, making it harder for Beijing to rally a broad global coalition against U.S. trade actions. On Capitol Hill, House Democrats expressed concern that Trump’s tariffs have pushed important Asia-Pacific partners—including Japan, South Korea, Australia, and Vietnam—closer to China. “We’ve started trade disputes with every one of our partners in the Asia-Pacific,” said Rep. Adam Smith of Washington. Rep. Joe Courtney of Connecticut added, “This is steering our allies away from us.” But not everyone agreed. Rep. Trent Kelly of Mississippi defended the tariffs, saying, “Letting others take advantage of us doesn’t make us strong leaders.” Shortly after Trump announced his new round of “reciprocal” tariffs on April 2, Rep. Krishnamoorthi denounced the decision as “a total surrender of American global leadership that plays straight into China’s hands.” Trump pauses reciprocal tariffs for 90 days, except for China China Strengthens Global Ties Amid U.S. Trade Disruption Amid intensifying trade tensions, Chinese Premier Li Qiang spoke by phone with European Commission President Ursula von der Leyen, reaffirming China’s desire to strengthen its relationship with the EU. Li described China and the EU as vital trading partners with deeply interconnected economies. Von der Leyen acknowledged the need for Europe and China to support a more robust international trading system in light of U.S. disruptions. She also pressed for improved market access for European firms in China. China raises retaliatory tariff on US to 84% as it vows to 'fight to the end' Meanwhile, Chinese Commerce Minister Wang Wentao, during a virtual meeting with Malaysia’s trade minister, emphasized Beijing’s readiness to work with trading partners to protect multilateral trade rules. Malaysia currently chairs ASEAN, the 10-member Southeast Asian bloc. ASEAN’s economic ministers, in a joint statement, voiced concern over U.S. unilateral tariffs, warning of negative impacts on small businesses and overall trade flows. Earlier in March, China’s trade officials met with their counterparts from Japan and South Korea, issuing a joint statement calling for greater cooperation on supply chain resilience. However, they stopped short of addressing a unified response to U.S. tariffs—highlighting the challenges of forming a regional consensus.

China is reaching out to other nations as the U.S. layers on more tariffs in what appears to be an attempt to form a united front to compel Washington to retreat. Days into the effort, it's meeting only partial success with many countries unwilling to ally with the main target of President Donald Trump's trade war. Facing the cratering of global markets, Trump on Wednesday backed off his tariffs on most nations for 90 days, saying countries were lining up to negotiate more favorable conditions. China has refused to seek talks, saying it would “fight to the end” in a tariff war, prompting Trump to further jack up the tax rate on Chinese imports to 125%. China has retaliated with tariffs on U.S. goods of 84%, which took effect Thursday. Trump's move was seemingly an attempt to narrow what had been an unprecedented trade war between the U.S. and most of the world to a showdown between the U.S. and China. “A just cause receives support from many,” Foreign Ministry spokesperson Lin Jian said at a daily briefing on Thursday. “The U.S. cannot win the support of the people and will end in failure.” China has thus far focused on Europe, with a phone call between Premier Li Qiang and European Commission President Ursula von der Leyen “sending a positive message to the outside world.” “China is willing to work with the EU to jointly implement the important consensus reached by the leaders of China and the EU, strengthen communication and exchanges, and deepen China-EU trade, investment and industrial cooperation,” the official Xinhua News Agency reported. That was followed by a video conference between Chinese Commerce Minister Wang Wentao and EU Commissioner for Trade and Economic Security Šefčović on Tuesday to discuss the U.S. “reciprocal tariffs.” Wang said the tariffs “seriously infringe upon the legitimate interests of all countries, seriously violate WTO rules, seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order,” Xinhua said. Global shares jump following historic gains on Wall St after Trump paused most of his tariffs “It is a typical act of unilateralism, protectionism and economic bullying,” Wang said quoted as saying. “China is willing to resolve differences through consultation and negotiation, but if the U.S. insists on its own way, China will fight to the end,” Wang said. Wang has also spoken with the 10-member Association of Southeast Asian Nations, while Li, the premier, has met with business leaders. China has “already made a full evaluation and is prepared to deal with all kinds of uncertainties, and will introduce incremental policies according to the needs of the situation,” Xinhua quoted Li as saying. In Hong Kong, the spokesperson for the local office of China's Foreign Ministry reiterated Beijing's unwillingness to negotiate with the U.S. under current conditions. “We must solemnly tell the U.S.: a tariff-wielding barbarian who attempts to force countries to call and beg for mercy can never expect that call from China,” Huang Jingrui wrote in an op-ed appearing in the South China Morning Post. If the U.S. is truly sincere about starting a dialogue with China, it should “immediately rectify its wrong practices and adopt the right attitude of equality, respect and mutual benefit,” Huang wrote. Despite their unhappiness with Washington, not all countries are interested in linking up with China, especially those with a history of disputes with Beijing. “We speak for ourselves, and Australia’s position is that free and fair trade is a good thing," Australian Prime Minister Anthony Albanese told reporters. “We engage with all countries, but we stand up for Australia’s national interest and we stand on our own two feet.” China imposed a series of official and unofficial trade barriers against Australia in 2020 after the government angered Beijing by calling for an independent inquiry into the COVID-19 pandemic. India has also reportedly turned down a Chinese call for cooperation, and Russia, typically seen as China's closest geopolitical partner, has been left out of the Trump tariffs altogether. Taiwanese Foreign Minister Lin Chia-lung said on Wednesday that his government is preparing for talks on tariffs with the U.S. Asia shares surge after Trump pauses tariffs The U.S. imposed a 32% tariff on imports from Taiwan, a close trading and security partner. Taiwan produces most of the high-performing computer chips craved by the U.S. and others and has long enjoyed a trade surplus with Washington. Yet, Southeast Asian nations such as Vietnam and Cambodia find themselves in a particular bind. They benefited when factories moved to their countries from China due to rising costs. They are being hit by punishing tariffs but have few buyers outside the U.S. and are already operating on razor-thin margins. Trump had previously denied contemplating a pause, but the drama over his tariffs will continue as the administration prepares to engage in country-by-country negotiations. Meanwhile, tariffs will be 10% for the countries where the larger ones were paused. It's not clear what further steps China will take, but the Foreign Ministry's Lin said China “will not sit idly by and let the legitimate rights and interests of the Chinese people be deprived of, nor will we allow the international trade rules and multilateral trading system to be undermined.” Non-tariff options include bans on American movies, American law firms and other trade in services. World markets soared on Thursday, with Japan’s benchmark jumping more than 9%, as investors welcomed Trump’s decision Germany’s DAX initially gained more than 8%. It was up 7.5% at 21,141.53 a bit later, while the CAC 40 in Paris gained 7.2% to 7,360.23. Britain’s FTSE 100 surged 5.4% to 8,090.02. Trump pauses reciprocal tariffs for 90 days, except for China However, U.S. futures edged lower and oil prices also declined. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports. The future for the S&P 500 was down 0.4% while that for the Dow Jones Industrial Average edged 0.2% lower.

World markets soared on Thursday, with Japan’s benchmark jumping more than 9% as investors welcomed U.S. President Donald Trump’s decision to put his latest tariff hikes on hold for 90 days, though he excluded China from the reprieve. In early trading, Germany’s DAX initially gained more than 8%. By midmorning, they were up 5.3% at 20,720.86, while France's CAC 40 in Paris gained 5% to 7,204.23. Britain's FTSE 100 surged 4.0% to 7,983.37. Chinese shares saw more moderate gains, given yet another jump in the tariffs each side is imposing on each others’ exports. The future for the S&P 500 was down 2.1% while the contract for the Dow Jones Industrial Average dropped 1.6%. Analysts had expected the global comeback given that U.S. stocks had one of their best days in history on Wednesday as investors registered their relief over Trump’s decision. “Everything is still very volatile, because with Donald Trump, you don’t know what to expect. This is really big uncertainty in the market. The threat of recession has not faded," said Francis Lun, chief executive of Geo Securities. In Asia, Japan’s benchmark Nikkei 225 jumped 9.1% to finish at 34,609.00, zooming upward as soon as trading began. Australia’s S&P/ASX 200 soared 4.5% to 7,709.60. South Korea’s Kospi gained 6.6% to 2,445.06. Hong Kong's Hang Seng added 2.1% to 20,681.78. The Shanghai Composite rose 1.2% to 3,223.64. Investors went “from fear to euphoria,” Stephen Innes, managing partner at SPI Asset Management, said in a commentary. “It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief,” he said, referring to the tariffs on China, which Trump has kept. EU welcomes Trump tariff pause, silent on retaliation On Wednesday, the S&P 500 surged 9.5%, an amount that would count as a good year for the market and its third-best day since 1940. The Dow Jones Industrial Average shot to a gain of 2,962 points, or 7.9%. The Nasdaq composite leaped 12.2%. Markets had been sinking earlier in the day on worries that Trump’s trade war could drag the global economy into a recession. But then came the posting on social media that investors worldwide had been waiting and wishing for. “I have authorized a 90 day PAUSE,” Trump said, saying more than 75 countries are negotiating on trade and not retaliating against his latest increases in tariffs. China was a huge exception, with Trump saying tariffs are going up to 125% against its products. Treasury Secretary Scott Bessent later told reporters that Trump was pausing his so-called ‘reciprocal’ tariffs, announced on his April 2 “Liberation Day,” on dozens of trading partners. He kept a 10% tariff on nearly all global imports. China was a huge exception, though, with Trump saying tariffs are going up to 125% against its products, after Beijing hiked its tariffs on U.S. exports to 84%. The trade war is not over, and an escalating battle between the world’s two largest economies can create plenty of damage. U.S. stocks are also still below where they were just a week ago. Wall Street also got a boost from a relatively smooth auction of U.S. Treasurys on Wednesday. Earlier jumps in Treasury yields had indicated increasing levels of stress and Trump said he had been watching the bond market “getting a little queasy.” Higher yields on Treasurys put pressure on the stock market and push upward on rates for mortgages and other loans for U.S. households and businesses. U.S. Treasury yields have historically dropped — not risen — during volatile times because the bonds are usually seen as some of the safest possible investments. Asia shares surge after Trump pauses tariffs This week’s sharp rise had brought the yield on the 10-year Treasury back to where it was in late February. After approaching 4.50% in the morning, the 10-year yield pulled back to 4.34% following Trump’s pause and the Treasury’s auction. By early Thursday, it was trading at 4.28%, up from 4.26% late Tuesday and from just 4.01% late last week. In energy trading, benchmark U.S. crude fell $1.62 to $60.73 a barrel. Brent crude, the international standard, declined $1.67 to $63.81 a barrel. In currency trading, the U.S. dollar fell to 146.06 Japanese yen from 147.77 yen. The euro cost $1.1052, up from $1.0951.

European Commission President Ursula von der Leyen on Thursday welcomed President Donald Trump’s decision to temporarily halt most US tariffs, but she did not say whether the European Union intends to press ahead with its own retaliatory measures. “I have authorized a 90 day PAUSE,” Trump said, after recognizing the more than 75 countries that he said have been negotiating on trade and had not retaliated against his latest increases in tariffs. Countries subject to the pause will now be tariffed at 10%. The EU's rate was 20%, but it was not entirely clear how the 27-nation bloc would be impacted. China was not included. Trump further jacked up the tax rate on Chinese imports to 125%. Von der Leyen described the halt on reciprocal tariffs as “an important step towards stabilizing the global economy. Clear, predictable conditions are essential for trade and supply chains to function.” Before Trump’s announcement on Wednesday, EU member countries voted to approve retaliatory tariffs on $23 billion in goods in response to his 25% tariffs on imported steel and aluminum. The EU, the largest trading partner of the US, described them as “unjustified and damaging.” The tariffs are set to go into effect in stages, some on April 15 and others on May 15 and Dec. 1. The EU commission didn’t immediately provide a list of the goods. The bloc’s top trade official has shuttled between Brussels and Washington for weeks trying to head off a conflict. Trump pauses reciprocal tariffs for 90 days, except for China But Von der Leyen gave no sign that the EU’s timetable has changed. Members of the EU – the world’s largest trading bloc – repeated their preference for a negotiated deal to settle trade issues, and von der Leyen underscored that commitment, “with the goal of achieving frictionless and mutually beneficial trade.” Still, the head of the EU’s executive branch – which negotiates trade deals and disputes on behalf of the member countries – said that Europe intends to diversify its trade partnerships. She said that the EU will continue “engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas,” and to lift barriers to commerce inside its own single market. “Together, Europeans will emerge stronger from this crisis,” von der Leyen said.

Asian shares soared on Thursday, with Japan’s benchmark Nikkei 225 index surging over 2,000 points shortly after the Tokyo market opened, following President Donald Trump’s decision to ease tariffs on most of the US’s biggest trading partners. The regional market rally was anticipated after US stocks had their best day in history on Wednesday. Investor optimism grew after Trump announced he would ease tariff tensions, alleviating fears of an escalating trade war, AP reports. Japan’s Nikkei 225 jumped 8.3% to 34,353.17, while Australia’s S&P/ASX 200 climbed 4.7% to 7,722.90. South Korea’s Kospi rose by 5.5% to 2,419.37, and Hong Kong’s Hang Seng advanced 3.7% to 21,003.84. The Shanghai Composite increased 1.5% to 3,232.86. US stocks jitter as bonds strain amid tariff tensions Stephen Innes, managing partner at SPI Asset Management, described the shift as "from fear to euphoria". He said, “It’s now a manageable risk, especially as global recession tail bets get unwound, and most of Asia’s exporters breathe a massive sigh of relief.” Trump’s move came after recognising over 75 countries that had been negotiating on trade without retaliating against his tariff hikes. The US President confirmed that he would pause most of the tariffs on these nations for 90 days. However, he maintained a 10% tariff on nearly all global imports, with China remaining a notable exception. Trump announced that tariffs on Chinese goods would rise to 125%, indicating the potential for further market volatility. On Wall Street, the S&P 500 surged by 9.5%, marking a gain that would be considered strong for an entire year. This came after a period of significant market losses, as fears mounted that the trade war could drag the global economy into recession. But after Trump’s announcement on social media, investor sentiment shifted positively. The Dow Jones Industrial Average rose by 2,962 points, or 7.9%, while the Nasdaq composite leapt 12.2%. The S&P 500 recorded its third-best day since 1940.

US President Donald Trump declared a complete halt on all “reciprocal” tariffs that took effect at midnight, with the exception of those imposed on China. Trump announced that tariffs on China would rise from 104% to 125%, reports CNN. Meanwhile, Chief Adviser Muhammad Yunus has expressed his gratitude to President Trump for his decision. "Thank you, Mr. President, (@POTUS) for responding positively to our request for 90-day pause on tariffs. We will continue to work with your administration in support of your trade agenda," Chief Adviser's Press Secretary Shafiqul Alam said quoting Chief Adviser Prof Muhammad Yunus. In a post on Truth Social on Wednesday, Trump stated that he had “authorized a 90-day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately.” “Due to the lack of respect China has shown to the World’s Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately,” Trump wrote on his social media. “At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable,” he added. The decision to raise tariffs on China followed Beijing's announcement of new retaliatory tariffs on the United States, set to take effect on Thursday. The Trump administration has specifically targeted China's trade practices, said the report. Treasury Secretary Scott Bessent praised Trump’s resolve, stating on Wednesday that Trump had “great courage to stay the course until this moment.” The administration has warned countries worldwide, “do not retaliate and you will be rewarded,” and expressed willingness to negotiate with any nation seeking to engage in talks, Bessent noted. Bessent emphasized that the move “signals that President Trump cares about trade and that we want to negotiate in good faith.” Both Bessent and Commerce Secretary Howard Lutnick were with Trump when he posted his message on Truth Social, Lutnick confirmed on a post on X,added the report. “Scott Bessent and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick wrote. “The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction.” Stocks surged following the announcement, with the Dow climbing 2,200 points, or 5.9%. The S&P 500 gained 6.5%, and the Nasdaq rose by more than 8%. The markets had been under pressure due to the potential for significantly higher tariffs, as outlined by Trump last week, the report also said. However, Trump did not indicate that he was pausing the 10% universal tariff on all trading partners, except for Canada and Mexico, which took effect over the weekend. As a result, countries that had reciprocal tariffs imposed on them would still face a 10% tariff, Bessent confirmed.

US stocks are experiencing choppy trading on Wednesday after major markets elsewhere sank, as President Donald Trump’s intensifying trade war continues to roil investors. The S&P 500 edged up 0.3% during morning trading after a volatile start. The benchmark index, central to many 401(k) retirement plans, swung dramatically from a 0.5% decline to a 1.4% gain before easing again. As of 10:15 a.m. Eastern time, the Dow Jones Industrial Average was down 34 points, or 0.1%, while the Nasdaq composite gained 1.1%. Sharp fluctuations have become the norm for global markets lately—not just daily but even hourly—as investors try to anticipate the economic fallout from Trump’s escalating trade war. On Tuesday, the S&P 500 oscillated between a 4.1% rise and a 3% fall, marking a second consecutive day of drastic reversals. Wall Street's latest movements follow the activation of Trump’s newest tariff measures, which took effect just after midnight, targeting goods from across the globe. This includes a 104% levy on Chinese imports. In response, China—the world’s second-largest economy—announced it would increase tariffs on U.S. products to 84% starting Thursday. “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end,” China’s Ministry of Commerce stated. This hardline stance between the world’s two largest economies is fuelling fears that tariffs may become a long-term fixture—something many economists and investors believe could trigger a recession. On Wednesday, the European Union also authorised tariffs targeting $23 billion worth of U.S. goods in a retaliatory move of its own. Despite this, some investors remain hopeful that Trump may eventually scale back tariffs following negotiations with other nations—an optimism that has occasionally driven stock prices higher. “BE COOL!” Trump wrote on his Truth Social platform shortly after markets opened. “Everything is going to work out well. The USA will be bigger and better than ever before!” One of the most notable market shifts on Wednesday was in the U.S. bond market, where Treasury yields surged once again. The yield on the 10-year Treasury rose to 4.37%, up from 4.26% on Tuesday and 4.01% last week. It briefly neared 4.50% earlier in the morning—an unusually large movement suggesting heightened stress. Analysts point to various possible drivers, including hedge funds and other investors liquidating Treasury holdings to cover significant equity losses. International investors may also be offloading U.S. Treasurys due to trade tensions. Both scenarios would drive Treasury prices lower and their yields higher. Regardless of the cause, rising Treasury yields exert pressure on the stock market and are likely to push up borrowing costs for mortgages and other consumer loans. Before markets opened, futures for the S&P 500 and other indexes trimmed earlier sharp losses as Treasury yields also moderated their gains. The uncertainty surrounding tariffs is already complicating strategic planning for major U.S. corporations. On Wednesday, Delta Air Lines withdrew its 2025 financial outlook, citing disrupted expectations for consumer and business spending and falling travel demand amid the trade conflict. “With broad economic uncertainty around global trade, growth has largely stalled,” said CEO Ed Bastian in a statement. “In this slower-growth environment, we are protecting margins and cash flow by focusing on what we can control.” Walmart, by contrast, affirmed its full-year projections for sales and operating income. Overseas, stock markets saw widespread declines across Europe and much of Asia. London’s FTSE 100 fell 2.2%, the Nikkei 225 in Tokyo dropped 3.9%, and Paris’ CAC 40 slid 2.6%. Chinese markets, however, bucked the trend, with Hong Kong’s Hang Seng up 0.7% and Shanghai’s benchmark rising 1.3%.

Asian stock markets tumbled on Wednesday after a sweeping new round of U.S. tariffs, including a staggering 104% duty on Chinese imports, officially came into force at midnight Eastern Time. The move has intensified global trade tensions and triggered widespread uncertainty among investors, economists, and policymakers. Japan’s benchmark Nikkei 225 took a significant hit, at one point plunging more than 5%, while other key regional indices followed suit. By mid-afternoon in Tokyo, the Nikkei was down 4.7% at 32,475.57. Hong Kong’s Hang Seng dropped 1.8% to 19,769.24, South Korea’s Kospi shed 1.9% to 2,290.87, and Australia’s S&P/ASX 200 declined 1.8% to 7,374.80. Shanghai’s Composite Index edged slightly lower by 4 points to 3,141.46, and New Zealand markets also registered losses. The market turmoil followed a volatile Tuesday on Wall Street. The S&P 500 erased a 4.1% gain to close 1.6% lower, falling nearly 19% below its February high. The Dow Jones Industrial Average dipped 0.8%, while the tech-heavy Nasdaq fell 2.1%. China criticises US tariffs, warns of trade war losses The latest tariffs, which build on previous rounds, include a baseline 10% duty on nearly all of America’s trading partners. Additional levies range from 20% to 50% on specific countries, with China facing the steepest hike. A 34% tariff was recently added to existing 70% duties on Chinese goods, bringing the combined rate to 104%. Other nations facing sharp increases include Vietnam (46%), Madagascar (47%), Taiwan (32%), South Korea (25%), Japan (24%), and the European Union (20%). Economists warn the prolonged trade conflict could raise consumer prices in the U.S., dampen global economic growth, and potentially trigger a recession if the tariffs remain in place long-term. Some analysts believe the worst could still be averted if President Trump scales back the duties through negotiations. Bangladesh Garment Sector at Risk In Bangladesh, the world's second-largest apparel exporter after China, manufacturers are growing increasingly concerned about losing ground in the U.S. market. The country’s garments sector exported $7.34 billion worth of apparel to the U.S. in 2024, out of a nearly $39 billion industry. However, with the U.S. now imposing a new 37% tariff on Bangladeshi apparel, manufacturers say American buyers are already pausing orders. Industry leaders warn this could allow competitors like India and Pakistan to gain market share. To mitigate the impact, the Bangladeshi government has requested a three-month delay in implementing the new tariffs. Asif Ashraf, managing director of Urmi Group, cautioned that the measures could “change the global equilibrium.” The garments industry employs around 4 million people in Bangladesh, mostly women, and accounts for nearly 80% of the country’s exports. South Korea Announces $2 Billion Auto Sector Support Meanwhile, South Korea has rolled out an emergency support package worth 3 trillion won (approximately $2 billion) to shield its automobile industry from the fallout of the new tariffs. The initiative includes expanded low-interest financing from state-run banks, a joint support program with Hyundai and Kia, and increased subsidies for electric vehicle purchases. China reiterates warning of retaliation over US tariffs The auto sector is a key pillar of South Korea’s economy. Last year, the country exported $34.7 billion in vehicles and $8.2 billion in auto parts to the U.S. The South Korean government fears the newly imposed 25% U.S. tariff on cars and components will deal a “severe blow” to the sector. As global markets reel from the escalation, all eyes remain on Washington to see whether further retaliatory moves or a return to negotiations will follow. Source: With input from agency 

Tensions between China and the United States intensified on Tuesday as President Donald Trump escalated trade hostilities by imposing a sweeping 104% tariff on all Chinese imports. With neither side showing signs of retreat, Beijing pledged to counter what it described as American "aggression" with unwavering resistance. Initially, Trump had announced an additional 34% tariff on Chinese goods. In response, China imposed an identical tariff on American exports. The US then retaliated with another 50% duty. When combined with existing tariffs from earlier in the year, the total increase on Chinese imports under Trump’s second term has reached 104%. China's Response Beijing denounced the latest measures as economic blackmail and vowed to resist “to the end.” In a phone conversation with European Commission President Ursula von der Leyen, Chinese Premier Li Qiang stated that China is well-prepared to cushion any external economic shocks. He expressed confidence in the continued "stable and healthy growth" of the Chinese economy in 2025 despite Washington’s latest tariff escalation. Li emphasized that China’s macroeconomic planning had already factored in global uncertainties, and he condemned the US actions as examples of unilateralism, protectionism, and economic coercion. He said China’s firm response was aimed not only at safeguarding national interests but also at defending international trade norms. China’s foreign minister criticizes US tariffs and accuses the country of ‘meeting good with evil’ "Protectionism leads nowhere – openness and cooperation are the way forward for all," Li told von der Leyen, as quoted by Bloomberg. Beijing’s remarks followed another turbulent day for US markets, which saw sharp declines as Trump remained resolute. The China-EU call took place just hours before Trump’s new tariffs were set to affect Europe as well, with a 20% duty on EU exports looming. Trump’s Trade War Strategy The global economy has been rattled since Trump’s initial 10% tariffs came into effect over the weekend, triggering widespread market volatility and fears of a potential recession. Import costs to the US from numerous countries are set to rise even more starting Wednesday. Trump claims the tariffs will restore America’s manufacturing base by compelling companies to bring production back to the US. However, economists and business leaders are skeptical, warning that such a shift would take time—if it happens at all—and that consumers will likely face higher prices as a result. Despite mounting criticism, Trump declared on Tuesday that the US is “taking in almost $2 billion a day” from the tariffs. Global Reactions Following Washington’s refusal to reconsider its tariff policy, Canada announced it would implement its own duties on select American automobile imports starting Wednesday. Meanwhile, the European Union—long criticized by Trump for its trade policies—is expected to announce its countermeasures as early as next week. French President Emmanuel Macron urged Trump to rethink his approach but said the EU would respond if necessary. In response to US tariffs on steel and aluminum introduced last month, the EU has prepared duties of up to 25% on a range of American products, including soybeans and motorcycles, according to AFP. Tailored Trade Agreements? China criticises US tariffs, warns of trade war losses Trump stated that the US is pursuing “tailored deals” with preferred trade partners, with the White House confirming it would prioritize allies such as Japan and South Korea. US Trade Representative Jamieson Greer told the Senate that several countries—including Argentina, Vietnam, and Israel—had expressed willingness to lower their tariffs. Despite retaliation from China and rising domestic criticism, Trump has ruled out softening his hardline trade policy. Source: NDTV