The EU on Wednesday adopted its first measures hitting back at President Donald Trump’s tariff onslaught, targeting more than 20 billion euros of US products including soybeans, motorcycles and beauty products, the European Commission said.
“These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,” a commission statement said. The levies are retaliation for previous US duties on steel and aluminium — with Europe’s response to Trump’s latest tariffs salvo yet to be announced.
US Treasury Secretary Scott Bessent said Wednesday that countries which do not retaliate to President Donald Trump’s fresh tariffs would not face higher rates, after Washington and Beijing entered a tit-for-tat escalation.
“I think what a lot of people are missing here is that the levels that were put out last Wednesday are a ceiling, if you don’t retaliate,” Bessent told a summit in Washington, adding that China has chosen to escalate the situation.
US President Donald Trump reignited market turmoil on Wednesday as punishing tariffs on dozens of countries kicked in, with China set to retaliate after being hit with levies topping 100 percent.
Following the sweeping 10 percent tariffs that took effect over the weekend, the tax US importers pay to buy goods from the likes of the European Union, Japan and Vietnam rose dramatically higher overnight.
After some respite on Tuesday, stock markets were in panic mode again, with Tokyo’s Nikkei index closing almost four percent lower on Wednesday while Paris, Frankfurt and London were down around three percent in their midday trading.
Russia said Wednesday that US President Donald Trump’s imposition of sweeping tariffs showed his disregard for the foundations of international trade, as Moscow raised concerns about a trade war between the United States and China.
“It seems to me that the White House’s latest tariff decision, which goes against or is contrary to (and) violates fundamental WTO rules, demonstrates that Washington no longer considers itself bound by the norms of international trade law,” Russian foreign ministry spokeswoman Maria Zakharova said.
China has released a white paper criticising the US for imposing tariffs on over $500 billion worth of Chinese exports since 2018, calling it a form of “unilateralism and protectionism” that undermines global trade cooperation.
China’s State Council Information Office on Wednesday released a white paper titled “China’s Position on Some Issues Concerning China-US Economic and Trade Relations.” The paper alleged that friction in trade between the US and China has significantly impeded normal economic and trade cooperation between the two countries, as reported by Xinhua.
According to Xinhua, yhe Chinese government issued the document to clarify the facts about China-US economic and trade relations and elaborate the position of the Chinese side on relevant issues, according to the white paper.
This comes after the White House announced on Tuesday (local time) the imposition of a 104 per cent tariff on China starting Wednesday, marking a significant escalation amid the tariff tension that has shaken the markets.
American consumers braced for pain even ahead of President Donald Trump’s hefty tariffs on imported products, which came into effect overnight Tuesday into Wednesday.
Some rushed out to buy the latest smartphones ahead of any price increases, while others said they had been watching their spending more closely than before.
“I live in an apartment. You can’t stockpile,” a retired woman told AFP on Tuesday as she loaded her groceries into her car at a Costco store on the outskirts of the US capital.
The woman, who requested anonymity, said she has begun cutting back on spending in recent weeks as a precaution.
“Things are going to keep going up, and we need the money to buy more food next week or the week after,” she said.
Despite pleas from top trading allies, the United States has now entered the next major phase in Trump’s tariff war, with huge and sweeping new import taxes targeting goods from many countries.
European stock markets sank on Wednesday as US President Donald Trump’s steep new tariffs came into effect and triggered a fresh sell-off in global equities.
Indices fell back into the red at the open, a day after partially rebounding from a days-long sell-off on hopes that Washington might temper some of the levies.
Paris and Frankfurt were down around 1.8 percent in early deals, as goods from the European Union now face a 20 percent tariff when entering the United States.
London slid 1.9 percent, with Britain having been hit with a 10 percent levy on Saturday.
Any hopes of a last minute roll-back on tariffs were dashed, as the United States hit China — its major trading partner — the hardest, with tariffs imposed on its products now reaching 104 percent.
China vowed on Wednesday it would take “firm and forceful” steps to protect its interests, after steep US tariffs of 104 percent came into effect.
Following the sweeping 10 percent tariffs imposed over the weekend, rates on imports to the United States from exporters including the European Union and Japan rose further on Wednesday.
China — Washington’s top economic rival but also a major trading partner — is the hardest hit, with tariffs imposed on its products since Trump returned to the White House now reaching a staggering 104 percent.
In response, Beijing’s foreign ministry spokesman Lin Jian insisted that “the Chinese people’s legitimate right to development is inalienable”.
“China’s sovereignty, security and development interests are inviolable,” he said.
“We will continue to take firm and forceful measures to safeguard our legitimate rights and interests,” Lin said.
Also on Wednesday, Beijing’s commerce ministry said the country had “firm will” to fight a trade war with Washington, state news agency Xinhua said.
“With firm will and abundant means, China will resolutely take countermeasures and fight till the end if the United States insists on further escalating economic and trade restrictive measures,” Xinhua quoted the ministry as saying.
China’s number two leader said on Tuesday that the country has the “tools” necessary to weather economic headwinds, after blanket tariffs imposed by the United States, Beijing’s biggest trading partner.
“China’s macroeconomic policy this year takes full account of various uncertainties and has a sufficient reserve of policy tools,” Premier Li Qiang told European Commission President Ursula von der Leyen during a phone call, according to state news agency Xinhua. “China can fully hedge against adverse external effects, and is fully confident of maintaining sustained and healthy economic development.”
Manufacturers struggling to make long-term plans. Farmers facing retaliation from Chinese buyers. US households burdened with higher prices. Republican senators are confronting the Trump administration with those worries and many more as they fret about the economic impact of the president’s sweeping tariff strategy that went into effect Wednesday.
In a Senate hearing and interviews with reporters this week, Republican skepticism of President Donald Trump’s policies ran unusually high. While GOP lawmakers made sure to direct their concern at Trump’s aides and advisers – particularly US Trade Representative Jamieson Greer, who appeared before the Senate Finance Committee Tuesday – it still amounted to a rare Republican break from a president they have otherwise championed.
Lawmakers had reason to worry: the stock market has been in a volatile tumble for days and economists are warning that the plans could lead to a recession.
“Whose throat do I get to choke if this proves to be wrong?” Republican Sen. Thom Tillis told Greer as he pressed for an answer on which Trump aide to hold accountable if there is an economic downturn.
Taiwanese exporters are crunching numbers and talking to American clients as they scramble to figure out how to respond to US President Donald Trump’s tariff blitz that threatens to derail their businesses.
While the final impact is not yet known, factory owners on the island are clear eyed on one thing: moving operations to the United States is easier said than done.
“Taiwan’s structure is what makes this industry viable,” the owner of a machine tool exporter told AFP on the condition of anonymity, highlighting the island’s network of small and medium-sized factories supplying his company.
“There are so many components, like gears, belts and others — the US doesn’t have these industries. Setting up a factory in the US would not be worth it,” he said, describing Trump’s policy as “ridiculous”.
US President Donald Trump’s latest round of sweeping tariffs—now fully in effect—are expected to deliver a significant blow to China’s economy, with Goldman Sachs warning that the 104 per cent total tariff on Chinese goods could slash Beijing’s growth by 2.4 percentage points.
China, which has set a 5 per cent growth target for the year, may fall short if the trade tensions intensify. Goldman Sachs is forecasting a lower 4.5 per cent growth, cautioning that risks to this outlook remain tilted to the downside.
The stiff tariffs took full effect just after midnight on Wednesday, following Trump’s April 2 announcement that nearly all US trading partners would face a minimum 10 per cent import tax—with far steeper rates for countries running trade surpluses with the United States.
Facing the ripple effects of President Trump’s 26% reciprocal tariffs, India is looking to a bilateral trade agreement with the US as its primary defence. As the global trade landscape shifts rapidly, New Delhi sees a direct deal as the most strategic path forward to avoid being caught in the tariff crossfire.
“Agreed on the importance of the early conclusion of the Bilateral Trade Agreement,” said EAM Subrahmanyam Jaishankar in a X post on Monday, following a conversation with US secretary of state Marco Rubio.
Union minister for commerce and industry Piyush Goyal stated that the Government is working on a bilateral trade agreement as was decided between Prime Minister Modi and US President Trump in February. His remarks came in the face of the tariffs imposed by Trump’s administration.
Piyush Goyal assured the businesspersons that the government is “keeping India’s interests at the forefront” and expressed hope that the bilateral trade agreement will “power” the economy towards Viksit Bharat 2047.
On US tariff impacts, Union minister Piyush Goyal told ANI, “We are working on a bilateral trade agreement as was decided between Prime Minister Modi and US President Trump in February… We had a series of engagements, all of which are going in the right direction. We are covering a wide area of subjects and products. I can assure businesspersons across the country that we are keeping India’s best interests at the forefront… Our bilateral trade agreement will power the economy towards Viksit Bharat 2047…”
Meanwhile, Union minister Hardeep Puri on Tuesday said he was confident India will emerge stronger from the fallout of the US administration tariffs once the bilateral trade agreement between the two partner countries is finalised.
US President Donald Trump’s “reciprocal” tariffs on dozens of countries kicked in Wednesday, slapping Chinese goods with a steep 104% duty and intensifying his global trade war—even as his administration moves toward talks with several nations.
The sweeping tariffs have disrupted a global trading system that held steady for decades, stoked recession fears, and sent stock markets around the world into a sharp decline.
Trump’s tariff moves have rattled global markets, sent the S&P 500 toward bear territory, and triggered panic among businesses and consumers already bracing for rising costs.
A fresh wave of US tariffs took effect against dozens of trading partners Wednesday, with President Donald Trump taking specific aim at China and accelerating his trade war.
The customized rates for nearly 60 economies supersede baseline duties that took effect Saturday. New levels largely range from 11 percent to 50 percent, but retaliation from Beijing will see the US tariffs imposed on China this year rise to a staggering 104 percent.
President Donald Trump on Wednesday signed an executive order tripling tariffs on Chinese packages valued under $800, following Beijing’s move to impose 34% duties on American goods.
Under the new order, these shipments—previously subject to a 30% or $25 tariff—will now face a 90% duty or $75, whichever is higher. The change marks a significant shift from past policy, as packages under $800 had been exempt from tariffs until this year.
The so-called “de minimis” rule, which Trump scrapped last week, had primarily benefited Chinese e-commerce platforms like Temu and Shein.
Ryan Bivens, a grain farmer in Kentucky who supplies corn to major bourbon producers, already operated at a loss last year due to rising inflation. Now, President Donald Trump’s escalating trade war threatens to worsen the blow.
Industries across the US are bracing for costlier imports and tighter export markets as countries prepare to retaliate against Trump’s tariffs. America’s whiskey sector—often a target in trade disputes—is once again in the crosshairs, with distillers and their supply chains, from farmers to barrel-makers, bracing for economic fallout.
While Trump’s tariff strategy is aimed at shielding domestic steel and aluminium, it’s squeezing other industries—particularly in Republican strongholds. The very workers and regions that helped return him to the White House are now facing some of the steepest consequences.
“Companies are pouring back into our country,” Trump said at the National Republican congressional committee dinner. “I know what the hell I’m doing. I know what I’m doing, and you know what I’m doing, too. That’s why you vote for me.” He added that after years of countries ripping off the United States, “now it’s our turn to do the ripping”.
China’s second-highest leader Li Qiang said on Tuesday that the country has the necessary tools to handle economic challenges, following widespread tariffs imposed by the United States, China’s main trading partner.
“China’s macroeconomic policy this year takes full account of various uncertainties and has a sufficient reserve of policy tools,” Premier Li Qiang told European Commission president Ursula von der Leyen during a phone call, according to Chinese state news agency Xinhua. “China can fully hedge against adverse external effects, and is fully confident of maintaining sustained and healthy economic development.”
In a speech largely focused on the Republicans’ 2024 win and jabs at Democrats, President Donald Trump repeatedly returned to his defence of tariffs, brushing aside concerns over market declines, inflation, and business impacts.
“The shrill voices you’re hearing this week are the same frauds who ignored the loss of 90,000 US factories,” he said, blaming past policies for the decline in American manufacturing.
“The globalists have been wrong about everything,” Trump added. “I’m proud to be the president for workers, not outsourcers—someone who stands up for Main Street, not Wall Street.”
The United States and China moved closer to an all-out trade war on Tuesday, as President Donald Trump prepared to impose a new wave of tariffs on dozens of trade partners.
Global markets reeled after sweeping 10% US tariffs took effect over the weekend, triggering a sharp sell-off and stoking fears of a global recession.
Tariff rates on imports from multiple economies are set to climb further at 12:01am ET Wednesday, with levies on Chinese goods since Trump’s return to office now reaching a staggering 104%.
The latest escalation follows Beijing’s resistance to Trump’s trade strategy. Despite continued market losses—major US indexes tumbled again on Tuesday—the president remains defiant, insisting the policy will help restore America’s manufacturing base by pushing companies to relocate operations back to the US.
Asian stocks tumbled on Wednesday as a new round of steep US tariffs, including a hefty 104% levy on Chinese imports, was set to take effect.
Japan’s Nikkei 225 initially plunged nearly 4%, while markets in South Korea, New Zealand, and Australia also posted losses.
The slide followed a volatile session on Wall Street. On Tuesday, the S&P 500 dropped 1.6%, erasing an earlier 4.1% gain, and closing nearly 19% below its February peak. The Dow Jones Industrial Average fell 0.8%, and the Nasdaq lost 2.1%, amid mounting investor unease over the direction of President Donald Trump’s trade war.
The new tariffs were scheduled to take effect just after midnight US Eastern time, leaving global investors on edge.
Earlier in the day, markets had seen a temporary rally, with gains of 6% in Tokyo, 2.5% in Paris, and 1.6% in Shanghai, before sentiment reversed.
Japan’s benchmark Nikkei index fell in early trading on Wednesday, following losses on Wall Street driven by concerns over US tariffs and the ongoing trade war with China. The Nikkei 225 was down 2.67%, at 32,130.00, after a strong 6% rebound on Tuesday, which came in the wake of US President Donald Trump’s announcement of broad tariffs.
Wall Street stocks fell again on Tuesday, and US oil prices dropped to a multi-year low as fears over President Donald Trump’s escalating trade wars overshadowed hopes for a market rebound. Global equities had regained some ground after significant losses last week, with Europe and Asia posting gains. US markets initially surged on optimism about potential negotiations with Japan and South Korea, suggesting Trump’s trade conflict might be short-lived.
However, investor confidence waned as the White House confirmed massive tariffs on China would take effect overnight, leaving the market uncertain. Jack Ablin of Cresset Capital noted that investors are seeking clarity, which remains elusive, and now see a greater than 50% chance of a US recession.
The S&P 500 closed 1.6% down, below 5,000 points for the first time in nearly a year. Oil prices fell below $60 a barrel due to a bleak economic outlook, and the global trade war intensified.
US President Donald Trump defended his trade policies, claiming the US is now “pouring in” billions from tariffs on foreign imports. Speaking on Tuesday while signing executive orders supporting the coal industry, Trump highlighted the explosive impact of these tariffs, which are set to affect over 60 countries. He stated that tariffs are generating up to $2 billion a day but did not provide specific figures or details on which tariffs were responsible. Trump mentioned that many countries have requested exemptions but emphasized that the tariffs are still in place.
During the same event, Trump signed four executive orders aimed at revitalising the coal industry. He promised to “turbocharge coal mining” and increase electricity production to meet growing energy demands, especially from artificial intelligence and data centres. The orders include a moratorium on Obama-era coal regulations and measures allowing older coal plants to stay operational.
US President Donald Trump signed executive orders aimed at boosting coal mining in the US, seeking to “more than double” electricity production to meet growing demands from artificial intelligence technology. The orders will remove regulatory barriers to coal extraction and halt the closure of many coal-fired power plants. Trump pledged to end government bias against coal and directed the Department of Justice to challenge any state or local regulations hurting coal miners. Environmental groups, like Evergreen, criticized the move as a bailout for fossil fuel donors. Despite a decline in coal production in recent years, Trump’s administration continues to prioritize fossil fuels, recently rolling back environmental regulations set by his predecessor, Joe Biden.
President Donald Trump has claimed that tariffs imposed on trading partners are generating $2 billion a day for the United States.
Speaking at the White House’s East Room during an event on coal, Trump addressed a group of lawmakers, cabinet members, industry leaders and coal miners. He insisted that the tariffs are already paying off, calling them “somewhat explosive” and insisting they are essential to his economic strategy.
“We’ve had talks with many, many countries who want to make deals,” he said. “Our problem is, we can’t see that many that fast. But we don’t have to because the tariffs are on, and money is pouring in at a level we’ve never seen.”
He added that business leaders are now looking to relocate their operations to the US to avoid tariff penalties.
US stocks plunged on Tuesday after a volatile day, as Wall Street swung from a significant early gain to steep losses due to ongoing uncertainty surrounding President Donald Trump’s trade war. The S&P 500 soared 4.1% at the start, but quickly reversed course, dropping as much as 3% before trimming the loss to 1.6%. The Dow Jones Industrial Average fell by 320 points, while the Nasdaq composite dropped 2.1%.
Global stock markets had initially rallied, with Japan, Paris, and Shanghai seeing strong gains. However, analysts warned that more volatility is likely in the coming days and hours. Investors remain uncertain about how long Trump will maintain his aggressive tariffs, which could raise prices for U.S. consumers and slow the economy. Some fear that prolonged tariffs could lead to a recession, but there is hope that negotiations could help avoid the worst-case scenario.
Trump expressed optimism on Tuesday, announcing progress with South Korea and other countries eager to strike deals with the U.S. However, China warned it would retaliate against further tariff hikes. The U.S. is set to impose a 104% tariff on Chinese goods after midnight, with no exemptions.
Stocks of companies with extensive global supply chains, like Ralph Lauren and Best Buy, suffered losses. Meanwhile, health insurers gained after stronger-than-expected Medicare payments were announced. The bond market saw rising Treasury yields, reflecting expectations for economic strength.
US President Donald Trump on Tuesday stated that his administration was securing “tailored deals” with trading partners after the US imposed stringent tariffs in response to trade imbalances with various countries. Speaking at an event on US energy policy, Trump remarked, “We’re doing very well and making, I call them tailored deals, not off the rack, these are highly tailored deals.” He added that Japan and South Korea were both sending delegations to the US to negotiate agreements, with other countries also seeking to make deals.
Canada will impose a 25 percent tariff on certain US auto imports starting Wednesday, in retaliation against US President Donald Trump’s levies on autos and parts. Finance Minister Francois-Philippe Champagne stated that Canada is responding strongly to “unwarranted and unreasonable tariffs.” The new tariffs will target vehicles not compliant with the North American free trade agreement, mainly cars and light trucks with less than 75 percent North American parts—about 67,000 vehicles annually. Prime Minister Mark Carney announced the measures last week.
