Asian and European shares slid on Wednesday, with Japan’s Nikkei 225 dipping more than 5%, as the latest set of U.S. tariffs including a massive 104% levy on Chinese imports took effect.
China announced countermeasures, saying it will raise its retaliatory tariff on the U.S. to 84%, up from 34%, effective April 10
Japan’s Nikkei 225 closed 3.9% lower, at 31,714.03. Hong Kong’s Hang Seng rose 0.7%, while the Shanghai Composite index closed 1.3% higher.
Thailand’s benchmark also rose, apparently due to speculation that Beijing might be preparing to hold talks with the Trump administration. The unconfirmed rumors helped push the future for the S&P 500 up 0.3%, while that for the Dow was unchanged.
Taiwan led the losses in Asia, as its Taiex plunged 5.8%. In India, the Sensex declined 0.5% as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8%.
South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers. The S&P/ASX 200 in Australia declined 1.8% to 7,375.00. Shares in New Zealand also fell.
European markets extended their losses. Germany’s DAX slipped 2.5% to 19,762.13. In Paris, the CAC 40 declined 2.6% to 6,917.13. Britain’s FTSE 100 gave up 2.6% to 7,704.82.
On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%.
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Here's the latest:
China retaliates with 84% tariffs on US goods
China has again vowed to “fight to the end,” raising tariffs on American goods to 84% to match Trump’s addition of a 50% tariff, while adding an array of additional countermeasures Wednesday.
The 84% tariff will go into effect Thursday, and comes as a 104% tax on the country’s exports to the U.S. came into effect. “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” the Ministry of Commerce wrote in a statement introducing the white paper.
The government declined to say whether it would negotiate with the White House, as many other countries have started doing.
“If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.
Tata Steel to cut around 20% of workforce
Tata Steel said Wednesday it was cutting 20% of its Dutch workforce, citing in part geo-political developments. Some 1,600 workers are set to lose their jobs
Facing rising energy prices and Chinese competition, the Indian-owned firm has been struggling for several years. During the last financial year, which ended in March 2024, it booked a 556 million euro ($613 million) loss.
The company is also facing a 25% tariff imposed by the Trump administration. Around 12% of what the company produces in the Netherlands is exported to the United States.
“The challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance,” Tata said in a statement.
‘We are a little worried about the future’
François-Xavier Huard, the head of the French dairy federation, says the impact of U.S. tariffs on the sector will be significant, with likely greater losses than in 2019 when the previous Trump administration already imposed heavy duties on cheese and other European Union products.
Speaking to The Associated Press on Wednesday, Huard said losses on French cheese exports at the time amounted to 15 million euros ($16.6 million). He said food price inflation in the U.S., combined with the new tariffs, was likely to have an even greater impact on cheese sales, including high-end varieties.
“It is expected to be in the tens of millions of euros,” he said, insisting on the need for a response at EU level. “So we are vigilant and also a little worried about the future. The idea is that we have to react, but be careful not to overreact, as world trade is a highly inflammable matter.”
Pakistan sending high-level delegation to the US
Pakistan’s Prime Minister Shehbaz Sharif on Wednesday said he is sending a delegation to the United States for talks with the Trump administration over 29% tariffs on Pakistani imports.
According to a government statement, the delegation will include prominent business leaders and key exporters.
It said the decision was made during a high-level meeting chaired by Sharif in Islamabad to discuss how to enhance exports and review the impact of U.S. tariffs on Pakistan.
Pakistan heavily relies on foreign loans, and any decline in its exports will harm its already fragile economy.
France says ‘nothing has been ruled out’
French businesses should suspend their investments in the United States “at least during the first weeks and months of negotiations” about trade tariffs, government spokesperson Sophie Primas said, echoing a similar call last week by President Emmanuel Macron.
’We need to stand united,” Primas said, while she acknowledged Paris and Brussels can’t prevent European companies “from moving elsewhere.”
“But I think a pause (in investments) is welcome,” she said.
Europe’s response to the tariffs will be “united, proportionate and determined,” Primas said. “Nothing is set in stone at this stage as we obviously need to negotiate with all our European partners. But nothing has been ruled out,” she added.
Primas said it’s only through maintaining a power struggle with the U.S. that “we’ll be able to protect our interests,” even though she stressed the EU would prefer a “negotiated solution.”
Japanese officials aim for stability as tariffs rock markets
Japanese Finance Ministry official Atsushi Mimura told reporters Wednesday his ministry had agreed with Bank of Japan and the Financial Services Agency “to do their utmost to keep stability in the global financial markets.”
Mimura made the comment to Kyodo and other reporters after he met with Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and other financial officials at the ministry's offices.
Although the name of U.S. President Donald Trump was not mentioned, the hastily called meeting appeared to be a response to recent volatility in global stock markets, including the Tokyo Exchange, that has followed Trump’s tariffs, as well as worries about possible damage to the Japanese economy.
China vows to fight to the end, saying trade with US is already balanced
China again vowed to “fight to the end” against Donald Trump’s tariffs in a lengthy policy statement published Wednesday, arguing that trade between the two countries is in balance as a 104% tax on the country’s exports to the U.S. came into effect.
The government declined to say whether it would negotiate with the White House, as many other countries have started doing.
“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” the Ministry of Commerce wrote in a statement introducing the white paper.
The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term, and argues that taking into account trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is “roughly in balance.”
During Vietnam visit, Spanish PM says all will lose from trade war
On a visit to Hanoi, Spanish Prime Minister Pedro Sánchez is strengthening commercial ties with Vietnam amid the global economic turmoil caused by the United States’ sweeping tariffs.
The U.S. has slapped Spain, as a European Union member, with a 20% blanket tariff that rises to 25% for cars, steel and aluminum. Vietnam fared even worse and faces a crippling 46% duty.
Sánchez, making a first ever visit by a Spanish president to the southeast Asian country, said that “Spain and Vietnam are advancing toward a strategic, integral relationship” and announced a credit line of 305 million euros for Spanish companies to invest in Vietnam, especially in transport, infrastructure, energy and water resources.
Sánchez said that both countries were committed to the multilateral trade status quo that is being shaken by Donald Trump’s tariffs.
“We are firm believers in free trade to achieve development and prosperity,” Sánchez said after meeting with Vietnamese Prime Minister Pham Minh Chinh. “A trade war favors no one. We all will lose.”
Spain’s government wants to offer cheap credit for domestic companies whose export business to the U.S. could be harmed by Trump’s tariffs. Spain’s economy minister said Tuesday that 80% of Spain’s total of 18.6-billion euros worth of exports to the U.S. could be impacted.
After his stops in Hanoi and Ho Chi Minh City, Sánchez will visit China on Friday seeking closer economic and diplomatic ties with Trump’s No. 1 tariff target.
European shares slide
Germany’s DAX lost 2.1% to 19,857.36. In Paris, the CAC 40 declined 2.1% to 6,949.92. Britain’s FTSE 100 gave up 2% to 7,753.42.
The future for the S&P 500 lost 0.7% while that for the Dow Jones Industrial Average was down 0.5%.
China says it will take “resolute measures” to defend its trading rights
China said it will take “resolute measures” to defend its trading rights, but gave no details on how it will respond to U.S. moves that have pushed tariffs on Chinese goods to an unprecedented 104%.
Foreign Ministry spokesperson Lin Jiang said at a daily briefing Wednesday that China would “by no means” accept the U.S. tariff hikes and extreme pressure exerted on China.
Lin repeated China’s assertion that it would “fight to the end” against what it has described as trade bullying by the U.S., but did not say whether it would add to the 34% tariffs earlier announced on U.S. imports or apply other means. And Lin repeated Beijing’s belief that the U.S. must first “demonstrate sincerity for talks.”
India's Central Bank cuts key repo rate by 25 basis point
India’s Central Bank cut its key repo rate by 25 basis points on Wednesday, in a move to aid the sluggish economy that faces heat from the U.S reciprocal tariffs which are set to dampen New Delhi’s aspirations for an export-led recovery. That is the interest rate at which the institution lends money to commercial banks when there is a need for short-term needs.
The Monetary Policy Committee of the Reserve Bank of India unanimously voted to lower the repo rate to 6% for the second consecutive time this year, and changed its monetary policy stand from “neutral” to “accommodative.”
Governor Sanjay Malhotra said in a statement the latest tariffs have “exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation.”
India continues to make steady progress though towards its goals of price stability, economic growth and inflation, but the Bank remains vigilant to the possible risks from global uncertainties, said Malhotra.
Bank of Japan calls meeting on global economy and markets.
Top officials from the Bank of Japan, the Finance Ministry and the Financial Services Agency met Wednesday to discuss the nation’s response to what they said were the recent shifts in the global economy and markets.
The unexpectedly called meeting was believed to be over Trump’s recent tariffs, which have set off gyrations in global financial markets, including the Tokyo Stock Exchange. Trump was not mentioned in the announcement about the meeting.
Attending the meeting were Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and two officials each from the ministry and the agency.
Asia markets close down
Japan's Nikkei 225 lost 3.9% to 31,714.03. In Hong Kong, the Hang Seng lost 0.4% to 20,041.03, while the Shanghai Composite index reversed early losses, gaining 0.9%. to 3,173.56.
Taiwan led losses in Asia, as its Taiex plunged 5.8%. Big tech manufacturers were among the biggest decliners. Computer chip giant TSMC Corp. dropped 3.8% while iPhone maker Hon Hai Precision Industry plunged 10%.
South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers.
The S&P/ASX 200 in Australia declined 1.8% to 7,375.00. Shares in New Zealand also fell.
In India, the Sensex declined 0.5% as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8%.
Asia markets slide after tariffs go into effect
Japan’s Nikkei 225 dipped more than 5% and other Asian shares also sank Wednesday as the latest set of U.S. tariffs, including a massive 104% levy on Chinese imports, took effect.
Markets have been wobbly for days, with investors flummoxed over what to make of President Donald Trump’s trade war.
On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%.
Stocks had rallied globally on Tuesday, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. Any optimism or buying enthusiasm appeared to have dissipated by the time the sharply higher tariffs became reality.
The Nikkei 225 was down 4.7% at 32,475.57 as of mid-afternoon Tokyo time.
In Hong Kong, the Hang Seng lost 1.8% to 19,769.24, while the Shanghai Composite index edged just 4 points lower, to 3,141.46.
South Korea’s Kospi lost 1.9% to 2,290.87, while the S&P/ASX 200 in Australia declined 1.8% to 7,374.80. Shares in New Zealand also fell.
Bangladesh manufacturers worried about losing market share in US
Garment manufacturers and exporters in Bangladesh, the world’s second largest after China, are worried about losing its share in the apparel market of the United States, which is imposing new tariffs of 37%.
The U.S. is Bangladesh’s largest market as a single destination where the country’s nearly $39 billion industry exported apparel goods worth $7.34 billion in 2024.
Now, Bangladesh’s manufacturers say their U.S. buyers are halting orders, which could help competitors like India and Pakistan overtake Bangladesh in the U.S. market.
Bangladesh has already sought postponement of the application of the new tariff for three months to help the country assess the situation and smoothly implement its initiatives.
Asif Ashraf, managing director of Urmi Group, says they are worried about the U.S. market “because it will change the global equilibrium.” The sector employed about 4 million workers, mostly women from rural areas, and the industry accounts for about 80% of the country’s total annual exports.
South Korea launches emergency funding program for automobile industry
South Korea has launched an emergency funding program worth 3 trillion won ($2 billion) to help its automobile industry cope with the impact of increased tariffs imposed by the Trump administration.
The government package announced on Wednesday includes expanded low-cost financing from state-run lenders, as well as a new financing program backed by auto giants Hyundai and Kia, along with financial institutions, aimed at supporting struggling carmakers and auto parts manufacturers. The government will also expand subsidies for electric vehicle purchases.
Cars and auto parts stand as South Korea’s top export items to the United States, according to the Ministry of Trade, Industry and Energy, which raised concerns that the Trump administration’s imposition of a 25% tariff on these products will have a “significant shock” on the industry. The ministry says South Korea’s exports of automobiles to the United States totaled $34.7 billion last year, while exports of auto parts amounted to $8.2 billion.
Trump’s new tariffs go into effect, including a combined 104% levy on China
President Donald Trump’s sweeping new tariffs went into full effect just after midnight Wednesday.
When Trump announced the latest round of tariffs on April 2, he declared that the U.S. would now tax nearly all of America’s trading partners at a minimum of 10% — and impose steeper rates for countries that he says run trade surpluses with the U.S.
The 10% baseline already went into effect Saturday. Trump’s higher import tax rates on dozens of countries and territories took hold at midnight.
The steeper levies run as high as 50% — with that biggest rate landing on small economies that trade little with the U.S., including the African kingdom of Lesotho. Some other rates include a tax of 47% on imports from Madagascar, 46% on Vietnam, 32% on Taiwan, 25% on South Korea, 24% on Japan and 20% on the European Union.
Some of these new tariffs build on previous trade measures. Trump last week announced a tariff of 34% on China, for example, which would come on top of 20% levies he imposed on the country earlier this year. Trump has since threatened to add an another 50% levy on Chinese goods in response to Beijing’s recently promised retaliation. That would bring the combined total to 104% against China.
