United News of Bangladesh

Asian markets opened higher on Tuesday, with Japan’s Nikkei 225 benchmark surging more than 6% after a nearly 8% drop the previous day.  This recovery followed a volatile session on Wall Street, where U.S. stocks fluctuated following President Donald Trump’s warning of increased tariffs. On Tuesday morning, China's Commerce Ministry declared it would "fight to the end" and take unspecified countermeasures against the U.S. in response to Trump’s threat of an additional 50% tariff on Chinese imports. By late morning in Tokyo, the Nikkei 225 had risen 6.5% to 33,148.52. Hong Kong also regained some losses but not nearly enough to recover from its 13.2% plunge on Monday, marking the worst performance of the Hang Seng index since the 1997 Asian financial crisis. The Hang Seng rose 1.7% to 20,163.97, while the Shanghai Composite increased by 0.8% to 3,121.72. South Korea’s Kospi climbed 1.6% to 2,364.22, and the S&P/ASX 200 also rose 1.6%, reaching 7,462.60. Markets in New Zealand and Australia saw similar gains. On Monday, the S&P 500 fell 0.2%, as investors anxiously awaited Trump’s next moves in the trade conflict. If other countries agree to trade deals, he could reduce tariffs and avoid a potential recession, but if tariffs persist, stock prices may continue to drop. The Dow Jones Industrial Average dropped 349 points (0.9%), while the Nasdaq composite rose by 0.1%. All three indexes began the day sharply lower, with the Dow plummeting by as much as 1,700 points due to significant losses elsewhere globally. However, it suddenly surged by nearly 900 points by late morning. The S&P 500 recovered from a 4.7% loss to climb 3.4%, marking its biggest jump in years. This sharp rise followed a false rumor that Trump was considering a 90-day break from his tariffs, which was quickly debunked by the White House on X as “fake news.” The fact that such a rumor could cause a trillion-dollar market shift illustrates investors' hopes that Trump might ease up on the tariffs. Stocks soon reversed direction, and Trump reaffirmed his stance, indicating that he may escalate tariffs after China retaliated with its own set of tariffs on U.S. goods last week. Trump's tariffs challenge globalization, which has shaped the current world economy by reducing prices but also relocating manufacturing jobs. He has expressed a desire to bring factory jobs back to the U.S., a process that may take years. Additionally, Trump aims to reduce trade deficits, but it remains unclear how much room for negotiation exists with the U.S. and its trade partners. The fluctuations in stock indexes on Monday were partly due to investor hopes that ongoing negotiations might prevent the full implementation of these tariffs. One certainty on Monday was the global financial strain following Trump’s tariff announcement on his April 2 “Liberation Day.” Oil prices also dropped due to concerns that a global economy weakened by trade barriers will lead to reduced demand for fuel. U.S. crude oil fell below $60 per barrel on Monday for the first time since 2021 but rose by 62 cents to $61.32 per barrel early Tuesday. Brent crude, the international benchmark, increased by 70 cents to $64.91 per barrel. In currency markets, the U.S. dollar rose to 147.32 Japanese yen from 147.71 yen, while the euro fell to $1.0983 from $1.0917. Gold prices increased by $38, reaching $3,011.60 per ounce, and Bitcoin gained 2.1%, rising to $80,081.17. On Monday, Bitcoin had dropped below $79,000, down from its January peak of over $100,000.

China declared on Tuesday that it would “fight to the end” and implement countermeasures to protect its interests after U.S. President Donald Trump threatened to impose a further 50% tariff on Chinese goods. The Commerce Ministry criticised the United States for introducing what it termed “so-called ‘reciprocal tariffs,’” describing them as “completely groundless” and an example of “typical unilateral bullying.” China has already responded with retaliatory tariffs and signalled in its latest statement that more could follow. “The countermeasures taken by China aim to safeguard its sovereignty, security, and development interests, as well as to uphold the normal order of international trade. These actions are entirely lawful,” the ministry stated. “The U.S. decision to escalate tariffs on China is a repeated blunder and again highlights the coercive nature of the U.S. approach. China will never yield. Should the U.S. persist, China will fight to the end.” Trump’s latest threat, issued on Monday, sparked renewed fears that his efforts to restructure global trade could trigger a deeper and more damaging trade war. Stock markets from Tokyo to New York have experienced increased volatility as tensions rise. Trump warns of additional tariffs on China The threat followed China’s announcement that it would retaliate against tariffs introduced by Trump the previous week. “If China does not withdraw its 34% increase, which adds to their already long-term trade abuses, by April 8th, 2025, the United States will impose ADDITIONAL tariffs of 50% on China, effective April 9th,” Trump wrote on Truth Social. “Furthermore, all discussions with China regarding their requested meetings will be cancelled!” If enacted, the new tariffs would raise the total U.S. duty on Chinese imports to 104%. This includes the new 50%, plus the 20% levied as a penalty for fentanyl trafficking and an earlier 34% announced last week. These increases could lead to higher costs for U.S. consumers and prompt China to redirect lower-cost goods to other markets while strengthening trade ties with partners such as the European Union. During his first term, Trump frequently pointed to stock market gains as a measure of success, and some analysts believed the threat of market losses could discourage aggressive economic policies during a second term. However, that hasn’t held true, as Trump has downplayed economic disruptions. “I don’t mind going through it because I see a beautiful picture at the end,” he remarked. Although Trump administration officials have regularly appeared on TV to defend the tariffs, their arguments have failed to calm the financial markets. The only temporary lift came from a false report claiming top economic adviser Kevin Hassett said Trump was considering pausing all tariffs except on China. Markets surged before the White House dismissed the claim as “fake news.” China remains one of the largest U.S. trading partners, especially in consumer goods. Tariffs, which are effectively taxes on imports paid by American companies, are likely to result in higher prices for U.S. consumers. Federal Reserve Chair Jerome Powell on Friday warned that these tariffs might fuel inflation. “There’s a lot of waiting and seeing going on, including by us,” he said, noting no immediate decisions would be taken. European Commission President Ursula von der Leyen responded by saying the EU would seek trade opportunities with other nations beyond the U.S., pointing out there are “vast opportunities” elsewhere. Dr Yunus urges Trump to delay reciprocal tariffs on Bangladesh by 3 months In 2024, U.S. trade in goods with China totalled an estimated $582 billion, making China the top trading partner. The U.S. trade deficit in goods and services with China that year ranged between $263 billion and $295 billion.

U.S. President Donald Trump has warned that he will introduce further tariffs on Chinese goods starting tomorrow if Beijing does not roll back its recently announced 34% retaliatory tariffs on the United States. Trump stated that the new tariffs on Chinese imports would be set at 50%. Trump defends tariffs as 'medicine' despite market turmoil This development follows China’s announcement on Friday that it would impose 34% tariffs on U.S. products, in response to the White House’s decision to apply the same rate of levies on all Chinese imports beginning April 9. Source: With input from agency .

sian stocks plunged Monday, following Friday’s dramatic sell-off on Wall Street amid escalating trade tensions sparked by U.S. President Donald Trump’s tariff increases and Beijing’s retaliation. U.S. futures pointed to continued losses. Futures for the S&P 500 declined 2.5%, the Dow Jones Industrial Average futures dropped 2.1%, and Nasdaq futures slid 3.1%. In Tokyo, the Nikkei 225 fell nearly 8% shortly after markets opened, and by midday, the index was down 6% at 31,758.28. A circuit breaker was briefly triggered, halting trading in Topix futures after a sharp drop in U.S. futures. Financial stocks were among the hardest hit. Shares in Mizuho Financial Group plunged 11.3%, while Mitsubishi UFJ Financial Group’s stock fell 9.9%, as investors grew increasingly anxious about the potential global economic impact of the trade conflict. Chinese markets, which often move independently of global trends, also experienced steep losses. Hong Kong’s Hang Seng Index dropped 9.4% to 20,703.30, and the Shanghai Composite Index shed 6.2% to close at 3,134.98. Shares in tech giants also took a hit, with Alibaba Group Holdings tumbling 10% and Tencent Holdings falling 9.4%. South Korea’s Kospi declined 4.1% to 2,363.82, and Australia’s S&P/ASX 200 lost 3.8% to 7,377.70, after paring back from earlier losses exceeding 6%. Oil prices continued their descent, with U.S. benchmark crude dropping 4%, or $2.50, to $59.49 per barrel. Brent crude, the international standard, declined $2.25 to $63.33 a barrel. In currency markets, the U.S. dollar weakened to 146.70 Japanese yen from 146.94 yen. The yen, typically considered a safe haven in times of financial distress, gained ground. The euro eased to $1.0926 from $1.0962. Friday marked Wall Street’s most severe downturn since the COVID-19 crisis. The S&P 500 dropped 6%, the Dow fell 5.5%, and the Nasdaq Composite declined 5.8%. Analysts anticipate heightened market volatility and further dramatic price movements in the near term, as hopes for a quick resolution to the trade dispute remain slim. Stock Market sees fall in Dhaka, rise in Chittagong on first day after Eid Nathan Thooft, chief investment officer and senior portfolio manager at Manulife Investment Management, warned that more countries are likely to introduce retaliatory tariffs against the U.S. Given the number of parties involved, “we believe it will take significant time to navigate through the upcoming negotiations.” He added, “Our overall assessment is that market uncertainty and volatility are likely to continue for an extended period.” China's response to Trump’s latest tariff escalation intensified global market losses. Despite a surprisingly strong U.S. jobs report—typically the month's main economic highlight—it wasn’t enough to stop the market slide. So far, the trade war has yielded few if any winners in the financial markets. Beijing's announcement of retaliatory tariffs—including a 34% tariff on all U.S. imports starting April 10—fueled a fresh wave of selling across global exchanges. As the world's two largest economies, the U.S. and China are central to global economic stability. A major concern is that a prolonged trade war could tip the world into a recession, which may push equity prices even lower. The S&P 500 has already fallen 17.4% from its record high in February. Trump acknowledged that Americans may experience “some pain” due to tariffs but maintained that the long-term objectives—such as restoring manufacturing jobs to the U.S.—justify the cost. He appeared indifferent to the significant financial losses faced by investors. From his Mar-a-Lago resort in Florida, Trump headed to his nearby golf course after posting on social media, “THIS IS A GREAT TIME TO GET RICH.” The Federal Reserve could potentially soften the economic impact of tariffs by lowering interest rates, which generally encourages spending and borrowing. However, Fed Chair Jerome Powell cautioned on Friday that tariffs may drive up inflation expectations, and rate cuts could further stoke price increases. “Our responsibility is to keep long-term inflation expectations well anchored and to ensure that a one-time rise in price levels does not evolve into persistent inflation,” Powell said. Much depends on how long Trump’s tariffs remain in place and how other countries respond. Some on Wall Street are still hopeful Trump might reduce tariffs if he can secure favourable outcomes through negotiations. Stuart Kaiser, head of U.S. equity strategy at Citi, noted in a Sunday briefing to clients that current earnings forecasts and stock valuations do not fully account for the trade war’s potential effects. “There’s still significant room for further decline despite the recent sharp pullback,” he said. There was no indication from the Trump administration that it intends to ease the tariff policy that has wiped out trillions in market value. In an interview on Fox News Channel’s “Sunday Morning Futures,” White House trade adviser Peter Navarro reiterated the president’s position, insisting investors should remain calm. He claimed that the administration’s trade strategy would ultimately lead to “the biggest boom in the stock market we have ever seen.” Shift towards renewable energy both urgent necessity and strategic investment opportunity: BIDA “People just need to stay put, let the market find its bottom, and not get rattled by the panic driven by the media,” Navarro said.

Not even 24 hours after his party lost a key Wisconsin race and underperformed in Florida, President Donald Trump followed the playbook that has defined his political career: He doubled down. Trump’s move Wednesday to place stiff new tariffs on imports from nearly all U.S. trading partners marks an all-in bet by the Republican that his once-fringe economic vision will pay off for Americans. It was the realization of his four decades of advocacy for a protectionist foreign policy and the belief that free trade was forcing the United States into decline as its economy shifted from manufacturing to services. The tariff announcement was the latest and perhaps boldest manifestation of Trump’s second-term freedom to lead with his instincts after feeling his first turn in the Oval Office was restrained by aides who did not share his worldview. How it shakes out could be a defining judgment on his presidency. The early reviews have been worrisome. Financial markets had their worst week since the onset of the COVID-19 pandemic, foreign trade partners retaliated and economists warned that the import taxes may boost inflation and potentially send the U.S. into a recession. It's now Republican lawmakers who are fretting about their party’s future while Democrats feel newly buoyant over what they see as Trump’s overreach. Democratic activists participated in rallies across the country Saturday in the largest demonstrations since Trump returned to office in January. “The winds are changing,” said Rahna Epting, who leads MoveOn, one of many organizing groups. Trump is unbowed. He has promised that the taxes on imports will bring about a domestic manufacturing renaissance and help fund an extension of his 2017 tax cuts. He insisted Thursday as the Dow Jones fell by 1,600 points that things were “going very well” and the economy would “boom," then spent Friday at the golf course as the index plunged 2,200 more points. China to impose 34% tariff on all US imports from April 10 The White House stayed the course Saturday. “This past November, America resoundingly rejected the business-as-usual policies coming out of D.C.,” said White House spokesman Kush Desai, adding, “The entire Trump administration is aligned on delivering on President Trump’s mandate to reject the status quo.” In his first term, Trump’s tariff threats brought world leaders to his door to cut deals. This time, his actions so far have led to steep retaliation from China and promises from European allies to push back. Even some Trump supporters are having their doubts. Frank Amoroso, a 78-year-old resident of Dewitt, Michigan, said he is concerned about short-term rising interest rates and inflation, although he believes the tariffs will be good for the country in the long run. Amoroso, a retired automotive engineer who voted for Trump, said he would give the president’s second-term performance a C-plus or B-minus. “I think he’s doing things too fast,” he said. “But hopefully things will get done in a prudent way, and the economy will survive a little downfall.” Rep. French Hill, R-Ark., in a telephone town hall with constituents Thursday night, expressed reservations about the broad nature of the tariffs. Hill, who represents a district that includes Little Rock, said he does not back tariffs on Canada and Mexico. He said the administration should instead focus on renegotiating a U.S. trade agreement with its two neighbors. “I don’t support across-the-board tariffs as a general matter, and so I don’t support those, and I will be urging changes there because I don’t think they will end up raising a bunch of revenue that’s been asserted,” Hill said. “I wish I thought they did, but personally I don’t think they will. But I do support trade diplomacy.” Still, much of Trump's “Make America Great Again” coalition remains publicly supportive. Doug Deason, a prominent Texas-based Republican donor, said he loves the president's tariff plan, even if it causes some economic disruption. Asian stocks tumble following Wall Street drop on Trump tariffs “He told us during the election there would be pain for every American to get this ship turned around,” Deason said. “It is hard to watch our portfolios deteriorate so much, but we get it. We hope he holds course.” As Trump struggles with the economy, Democrats are beginning to emerge from the cloud of doom that has consumed their party ever since their election drubbing in November. They scored a decisive victory in Wisconsin’s high-profile state Supreme Court election on Tuesday, even after Elon Musk and his affiliated groups poured more than $20 million into the contest. New Jersey Sen. Cory Booker then breathed new life into the Democratic resistance by delivering a record 25-hour-long speech on the Senate floor that centered on a call for his party to find its resolve. Booker told The Associated Press afterward that a significant political shift has begun even as his party tries to learn from its mistakes in the 2024 presidential election. “I think you’re seeing a lot more energy, a lot more determination, a lot more feeling like we’ve got to fight,” Booker said. “You can’t sit back any more. You can’t sit on the sidelines. There’s a larger, growing movement.” Booker, a 2020 presidential candidate, acknowledged he is not ruling out a 2028 run, although he said he is focused on his 2026 Senate reelection for now. There is broad agreement among Democrats — and even some Republicans, privately at least — that what Trump has unleashed on the global economy could help accelerate the Democratic comeback. Ezra Levin, co-founder of the progressive resistance group known as Indivisible, has been critical of Democratic officials’ response in recent weeks to Trump’s leadership. But on Friday, he was somewhat giddy about the political consequences for Trump’s GOP after the tariffs announcement. “Raising prices across the board for your constituents is not popular,” Levin said. “It’s the kind of thing that can lead to a 1932-style total generational wipe out of a party.”

China announced Friday that it will impose a 34 per cent tariff on imports of all US products beginning April 10, part of a flurry of retaliatory measures following US President Donald Trump’s “Liberation Day” slate of double-digit tariffs. The new tariff matches the rate of the US "reciprocal" tariff of 34 per cent on Chinese exports that Trump ordered this week, AP reports. The Commerce Ministry in Beijing also said in a notice that it will impose more export controls on rare earths, which are materials used in high-tech products such as computer chips and electric vehicle batteries. Included in the list of minerals subject to controls were samarium and its compounds, which are used in aerospace manufacturing and the defence sector. Another element called gadolinium is used in MRI scans. China's customs administration said it had suspended imports of chicken from some US suppliers after detected furazolidone, a drug banned in China, in shipments from those companies. Separately, it said had found high levels of mold in the sorghum and salmonella in poultry meat from some of the companies. The announcements affect one company exporting sorghum, C&D Inc., and four poultry companies. Additionally, the Chinese government said it had added 27 firms to lists of companies subject to trade sanctions or export controls. Among them, 16 are subject to a ban on the export of “dual-use” goods. High Point Aerotechnologies, a defense tech company, and Universal Logistics Holding, a publicly traded transportation and logistics company, were among those listed. Beijing also announced it filed a lawsuit with the World Trade Organization over the tariffs issue. “The United States’ imposition of so-called ‘reciprocal tariffs’ seriously violates WTO rules, seriously damages the legitimate rights and interests of WTO members, and seriously undermines the rules-based multilateral trading system and international economic and trade order,” the Commerce Ministry said. “It is a typical unilateral bullying practice that endangers the stability of the global economic and trade order. China firmly opposes this,” it said.

Asian markets fell on Friday following a steep sell-off on Wall Street, triggered by the latest round of tariffs announced by Donald Trump, which dealt a fresh blow to the global economy on a scale not seen since the onset of the COVID-19 crisis. Futures for U.S. equities and oil prices also moved lower. Trump tariffs ignite global backlash, shake markets, trade alliances Japan’s Nikkei 225 dropped 2.6% to 33,818.18, while South Korea’s Kospi declined 0.8% to 2,467.14, as both nations moved toward talks with Trump’s administration to negotiate tariff reductions. Australia’s S&P/ASX 200 retreated 1.9% to 7,713.60. Chinese markets remained closed due to a public holiday. Trump introduced a base tariff of 10% on imports, with significantly higher rates imposed on goods from certain nations, including China and EU member states. UBS analysts estimated that the full scope of these tariffs—comparable to levels not seen in nearly a century—could slash U.S. economic growth by two percentage points this year and push inflation toward 5%. Such a dramatic economic impact makes the likelihood of the tariffs being sustained seem “low,” according to Bhanu Baweja and other strategists at UBS. Trump previously acknowledged tariffs might cause “a little disturbance” in the economy and financial markets, and on Thursday, he again downplayed their effects as he departed for Florida from the White House. “The markets are going to boom, the stock is going to boom, and the country is going to boom,” he asserted. On Thursday, the S&P 500 plunged 4.8% to 5,396.52—its worst single-day performance since the pandemic-induced crash of 2020. The Dow Jones Industrial Average slid 4% to 40,545.93, and the Nasdaq composite sank 6% to 16,550.61. Markets across the board were hit by fears of a damaging combination of slowing economic growth and rising inflation driven by the tariffs. From crude oil to Big Tech stocks and even the U.S. dollar, prices fell. Gold, which had recently reached record highs as a safe haven, also edged lower. Smaller U.S. firms were especially affected, with the Russell 2000 index diving 6.6%, pushing it more than 20% below its all-time high. While investors were bracing for sweeping tariffs, Trump’s announcement still delivered what Mary Ann Bartels, CIO at Sanctuary Wealth, called “the worst case scenario.” For some time, Wall Street had assumed Trump would use tariffs mainly as leverage in trade negotiations, rather than implement them as permanent policy. But his remarks on reshoring manufacturing jobs suggest a more ideological commitment, rather than a tactical manoeuvre. Achieving such a shift could take years. If the tariffs are fully implemented, stock values may need to fall significantly more than the current 10% from their peak to factor in a potential recession and the decline in corporate earnings that could result. As of now, the S&P 500 is down 11.8% from its February record. “Markets may still be underestimating the full impact, especially if these rates turn out to be final,” said Sean Sun, a portfolio manager at Thornburg Investment Management, though he suggested the announcement might still represent an opening move. Trump's Tariff Hike: How will it affect Bangladesh? When asked about the market reaction as he headed to his Florida golf club, Trump remained optimistic. “I think it’s going very well,” he said. “We’re conducting a sort of economic surgery, like a major operation. This is exactly how I said it would go.” One variable in the situation is the Federal Reserve, which could lower interest rates to stimulate the economy. The Fed had been cutting rates late last year but paused in 2025. Lower rates can help businesses and consumers by making borrowing cheaper. Treasury yields plunged amid growing expectations of rate cuts and broader concerns about the U.S. economy. The 10-year Treasury yield fell sharply to 4.04% from 4.20% on Wednesday, down from around 4.80% in January—a significant move in the bond market. However, the Fed’s flexibility may be limited. While lower rates can spur economic activity, they can also drive inflation higher—something tariffs are already intensifying. American consumers are bracing for higher costs across the board. Despite the turmoil, recent data shows the U.S. economy is still expanding. A report released Thursday revealed a decline in jobless claims, surprising economists who had expected a rise in unemployment. A strong labour market has been key in preventing a recession so far. Another report showed growth in the U.S. services sector—encompassing transportation, finance, and other areas—though the pace was slower than forecast, and business sentiment was mixed. Worries over slowing economic momentum and stubborn inflation drove declines in a wide array of stocks, with four out of five S&P 500 companies finishing lower. Best Buy fell 17.8%, hurt by concerns over its global supply chain. United Airlines dropped 15.6%, as fears over the economy may reduce both business and leisure travel. Target declined 10.9%, amid worries that consumers already grappling with inflation might cut back further. In early Friday trading, the U.S. dollar strengthened slightly to 146.05 yen from 145.93 yen. The euro also edged up, rising to $1.1068 from $1.1052.

World leaders have reacted with dismay, threats of countermeasures, and calls for negotiations in response to sweeping new tariffs announced by U.S. President Donald Trump. The import taxes, ranging from 10% to 49%, aim to bring factories and jobs back to the U.S. but have rattled global markets. Asian stocks fell sharply, and U.S. futures tumbled, signaling a volatile trading day ahead. Trump's Tariff Hike: How will it affect Bangladesh? Global Reactions Norway: Foreign Minister Espen Barth Eide said the tariffs might violate NATO’s Article 2, which promotes economic cooperation among allies. He plans to raise the issue with U.S. Secretary of State Marco Rubio. Poland: Prime Minister Donald Tusk warned that Poland’s GDP could shrink by 0.4% but vowed that Polish-U.S. ties would endure. Spain: Prime Minister Pedro Sánchez announced a €14.1 billion spending package to counter the tariffs' effects, calling the move "19th-century protectionism." Australia: Prime Minister Anthony Albanese criticized tariffs on remote Australian territories that do not export to the U.S., stressing Australia’s free trade policy. Hong Kong: Strongly opposed the tariffs and urged the U.S. to withdraw them, arguing that Hong Kong maintains a free trade policy. India: The Trade Ministry is expediting negotiations with the U.S. for a trade agreement to offset the impact of tariffs. The U.S. is India’s largest trading partner, with trade valued at $129 billion in 2024. Vietnam: The stock market plunged while gold prices hit a record high. Vietnam’s Prime Minister Pham Minh Chinh remained hopeful for 8% growth despite the heavy 46% tariffs. Ukraine: Economy Minister Yuliia Svyrydenko said Ukraine is negotiating for better tariff conditions, stressing its low tariffs on U.S. goods. Japan: Prime Minister Shigeru Ishiba expressed deep regret over the 25% auto tariff, saying Japanese firms have been major investors in the U.S. Germany: Chancellor Olaf Scholz called the tariffs an “attack” on global trade and warned of economic losses worldwide. Vice Chancellor Robert Habeck labeled the move "Inflation Day," predicting it would trigger recessions. Fiji: Deputy Prime Minister Biman Prasad called the 32% tariffs on Fijian exports “disproportionate” and “unfair,” particularly since the U.S. is a major trading partner. China: The Foreign Ministry condemned the tariffs as "unilateral bullying actions" and a violation of WTO rules. United Kingdom: Prime Minister Keir Starmer pledged a "cool and calm" response and said negotiations for an economic prosperity deal would continue. Thailand: Prime Minister Paetongtarn Shinawatra said Thailand is ready to negotiate and urged exporters to diversify markets. Trump set to announce 'reciprocal' tariffs in a risky move that could reshape the economy Industry and Business Impact Automakers: Stellantis will shut its Windsor, Canada, assembly plant for two weeks due to market uncertainty caused by the tariffs. Honda CEO Toshihiro Mibe said the company needs time to assess the situation. Southeast Asia: Some of the highest tariffs hit Vietnam (46%), Cambodia (49%), Bangladesh (37%), and Sri Lanka (44%). These measures could disrupt supply chains as multinational companies have shifted production to these countries to avoid earlier trade tensions. European Union: The European Commission called the tariffs a “major blow” to the global economy. Germany’s industry federation BDI urged the EU to coordinate a response with other major trading partners. Trump’s tariffs have triggered immediate global pushback, with nations considering countermeasures and negotiations. The economic fallout remains uncertain, but experts warn of rising costs and potential recessions worldwide. As affected countries prepare responses, global markets brace for continued volatility.

Wall Street was poised for losses before Wednesday’s opening bell as investors awaited President Donald Trump’s disclosure of the latest round of U.S. tariffs on trade partners. Futures for the S&P 500 fell by 0.6%, while Dow Jones Industrial Average futures declined by 0.5%. Nasdaq futures, already in correction territory due to the heavy presence of major technology firms, dropped a further 0.7%. Trump set to announce 'reciprocal' tariffs in a risky move that could reshape the economy Every sector in the S&P was in negative territory except for consumer staples. The hardest-hit sectors included autos, transportation, industrials, and technology. Trump’s new tariffs—set to be unveiled on what he has dubbed “Liberation Day”—aim to revive U.S. manufacturing while penalising countries he accuses of engaging in unfair trade practices for years. However, most economists believe these tariffs could push the economy into a recession and strain longstanding alliances. The reciprocal tariffs Trump is set to introduce follow previous measures, including 25% duties on auto imports, levies against China, Canada, and Mexico, and expanded tariffs on steel and aluminium. He has also imposed tariffs on countries importing oil from Venezuela and plans to implement separate import taxes on pharmaceutical drugs, lumber, copper, and computer chips. Markets have been highly volatile in recent weeks, with momentum shifting frequently due to uncertainty surrounding Trump’s tariffs and concerns over their impact on inflation and economic growth. Gold, traditionally a safe haven in uncertain times, has been trading at record highs, continuing that trend on Wednesday. Even before Trump’s latest tariff announcement, businesses have already been feeling the effects of his trade policies, and markets have experienced weeks of turbulence. "With uncertainty around tariff details, risk sentiment remained broadly fragile," Tan Jing Yi of Mizuho Bank commented. Even if the announced tariffs are less severe than expected, the unpredictable manner in which Trump has introduced his trade policies could still generate enough uncertainty to cause American consumers and businesses to cut back on spending, potentially harming the economy. Meanwhile, European markets saw declines by midday, with France’s CAC 40 dropping 0.7%, Germany’s DAX falling nearly 1.3%, and Britain’s FTSE 100 sliding 0.6%. In Asia, Japan’s Nikkei 225 edged up 0.3% to close at 35,725.87. Asian stocks rebound after Wall Street gains amid tariff concerns Hong Kong’s Hang Seng remained nearly unchanged at 23,202.53, while the Shanghai Composite rose by less than 0.1% to 3,350.13. Australia’s S&P/ASX 200 gained 0.1% to reach 7,934.50, while South Korea’s Kospi slipped 0.6% to 2,505.86.

After weeks of White House hype and public anxiety, President Donald Trump is set Wednesday to announce a barrage of self-described “reciprocal” tariffs on friend and foe alike. The new tariffs — coming on what Trump has called “Liberation Day” — is a bid to boost U.S. manufacturing and punish other countries for what he has said are years of unfair trade practices. But by most economists’ assessments, the risky move threatens to plunge the economy into a downturn and mangle decades-old alliances. The White House is exuding confidence despite the political and financial gamble being undertaken. “April 2, 2025, will go down as one of the most important days in modern American history,” White House press secretary Karoline Leavitt said at Tuesday’s briefing while adding that the new tariffs will take effect immediately. The reciprocal tariffs Trump plans to announce follow similar recent announcements of 25% taxes on auto imports; levies against China, Canada and Mexico; and expanded tariffs on steel and aluminum. Trump has also put tariffs against countries that import oil from Venezuela and plans separate import taxes on pharmaceutical drugs, lumber, copper and computer chips. None of the warning signs about a falling stock market or consumer sentiment turning morose have caused the administration to publicly second-guess its strategy. White House trade adviser Peter Navarro has suggested that the new tariffs would raise $600 billion annually, which would be the largest tax increase since World War II. Treasury Secretary Scott Bessent told lawmakers that the tariffs would be capped and could be negotiated downward by other countries, according to the office of Rep. Kevin Hern, R-Okla. But the White House has yet to confirm policy details, despite Trump saying on Monday that he had made his decision. Importers would likely pass along some of the cost of the taxes on to consumers. The Budget Lab at Yale University estimates that a 20% universal tariff would cost the average household an additional $3,400 to $4,200. The administration's premise is that manufacturers will quickly increase domestic production and create new factory jobs — and the White House is expressing confidence that Trump’s approach is absolutely correct. “They’re not going to be wrong,” Leavitt said. “It is going to work. And the president has a brilliant team of advisers who have been studying these issues for decades. And we are focused on restoring the golden age of America and making America a manufacturing superpower.” The bold optimism has done little to reassure the public or allies who see the import taxes as a threat. Asian stocks rebound after Wall Street gains amid tariff concerns Based on the possibility of broad 20% tariffs that have been floated by some White House aides, most analyses see an economy tarnished by higher prices and stagnation. U.S. economic growth — as measured by gross domestic product — would be roughly a percentage point lower, and clothing, oil, automobiles, housing, groceries and even insurance would cost more, the Budget Lab analysis found. Trump would single-handedly be applying these tariffs, since he has ways of legally doing so without congressional approval. That makes it easy for Democratic lawmakers and policymakers to criticize the Republican administration, if the uncertainty expressed by businesses and declining consumer sentiment are, in fact, signs of trouble to come. Heather Boushey, who served as a member of the Biden White House's Council of Economic Advisers, noted that the less aggressive tariffs Trump imposed during his first term failed to stir the manufacturing renaissance he promised voters. “We are not seeing indications of the boom that the president promised," Boushey said. “It's a failed strategy.” Senate Democratic leader Chuck Schumer of New York said the tariffs were fundamentally a way for Trump to raise revenues in order to pay for his planned extensions of income tax cuts that disproportionately favor millionaires and billionaires. “Almost everything they do, including tariffs, it seems to me, is aimed at getting those tax cuts for the wealthy,” Schumer said Tuesday on the Senate floor. Even Republicans who trust Trump's instincts have acknowledged that the tariffs could be disruptive to an economy with an otherwise healthy 4.1 % unemployment rate. “We’ll see how it all develops,” said House Speaker Mike Johnson, R-La. “It may be rocky in the beginning. But I think that this will make sense for Americans and help all Americans.” Longtime trading partners are preparing their own countermeasures. Canada has already imposed some in response to the 25% tariffs that Trump tied to the trafficking of fentanyl. The European Union, in response to the steel and aluminum tariffs, put taxes on 26 billion euros' worth ($28 billion) of U.S. goods, including on bourbon, which prompted Trump to threaten a 200% tariff on European alcohol. Many allies feel they have been reluctantly drawn into a confrontation by Trump, who routinely says that friends and foes have essentially ripped off the United States with a mix of tariffs and other trade barriers. Global automakers say Trump’s tariffs to hurt them and US consumers The flip side, of course, is that Americans also have the incomes to choose to buy designer gowns by French fashion houses and autos from German manufacturers, whereas World Bank data show the EU has lower incomes per capita than the United States. “Europe has not started this confrontation,” said European Commission President Ursula von der Leyen. “We do not necessarily want to retaliate but, if it is necessary, we have a strong plan to retaliate and we will use it.” Because Trump has hyped his tariffs without providing specifics, he has provided a deeper sense of uncertainty for the world, a sign that the economic slowdown could possibly extend beyond U.S. borders to other nations that would see one person to blame. Ray Sparnaay, general manager of JE Fixture & Tool, a Canadian tool and die business that sits across the Detroit River, said the uncertainty has crushed his company's ability to make plans. “There’s going to be tariffs implemented. We just don’t know at this point,” he said Monday. “That’s one of the biggest problems we’ve had probably the last — well, since November — is the uncertainty. It’s basically slowed all of our quoting processes, business that we hope to secure has been stalled.”