Trump tariffs live updates: Trump pauses higher tariffs for dozens of countries, but hikes China rate to 125%

Anthony Zurcher
North America correspondent
After a week of market turmoil, Donald Trump is dialing back his ambitious tariff plans.
The reordering of the global economic order is on hold, at least for now, and the promised golden age of American manufacturing will have to wait.
It’s unclear whether this was Trump’s plan from the start or a reaction to investor panic and growing public disapproval. In the end, it doesn’t really matter.
The reality is that the US is making nice – or at least nicer – with nations that held their retaliatory trade fire, letting the stock market bounce back and leaning into a trade war with China.
That will have global economic repercussions of its own, but it’s more in line with recent American foreign policy, including under Democratic President Joe Biden, that seeks to constrain Chinese ambitions.
The big question, however, is whether Trump’s actions over the past week – setting allies scrambling and threatening the established global order – will make such a strategy more difficult to pursue.
Scott Bessent, Treasury Secretary, is now speaking.
He says “every country in the world who wants to negotiate, we are willing to hear you”.
China’s tariff is being raised to 125% due to “their insistence on escalation”.
“We are going to work on a solution via our trading partners.”
They are giving the 90-day pause because Trump wants to be personally involved, they are tailoring each deal individually, and each deal will take time, Bessent says.
It’s all Trump’s decision, he adds.
White House press secretary Karoline Leavitt is now holding a news conference.
She says Trump has raised tariffs against China because “when you punch at the United States of America, President Trump is going to punch back harder”.
Leavitt says more than 75 countries reached out to Trump to negotiate, and they have been overwhelmed by the amount of requests.
“In the meantime, there will be a 90-day pause in the reciprocal tariffs as these negotiations are ongoing and the tariff level will be brought down to a universal 10%.”
US Commerce Secretary Howard Lutnick says in a social media post that he was in the room when US President Donald Trump wrote the Truth Social post announcing the 90-day pause on most tariffs and increase to China’s tariff rate.
“Scott Bessent (head of the US treasury) and I sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency,” Lutnick posted on X.
“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” he says.
Treasury Secretary Scott Bessent says Mexico and Canada are included in the 10% baseline tariffs imposed by the US, following Donald Trump’s announcement to pause higher tariffs for 90-days.
Financial markets have soared after President Trump announced a 90-day “pause” on the tariffs against countries who have not retaliated against the US.
The NASDAQ index is up 9% and the S&P 500 index is up 8%.
Image source, Reuters
As we’ve just reported, Donald Trump has raised tariffs against China to 125%, and also issued a 90 day pause to some tariffs.
Here’s his Truth Social statement in full:
“Based on the lack of respect that 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.
“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.
“Conversely, and based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately. Thank you for your attention to this matter!”
We are continuing to decipher the specifics of Trump’s announcement, stick with us for the latest.
We have some more now from Donald Trump, who confirms in the same social media post that he’s authorising a “90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately”.
Chinese goods imported to the US will carry tariffs of 125% effective immediately, Donald Trump says.
“At some point, hopefully in the near future, China will realise that the days of ripping off the USA, and other Countries, is no longer sustainable or acceptable,” the US president writes on social media platform Truth Social.
Image source, Getty Images
Wall Street opened with mixed trading this morning, with both S&P 500 and Dow Jones down, we’re now seeing some slight changes as it reaches lunchtime in the US.

The S&P 500 is currently up 1.5%
The Dow Jones index is up 1.3%
Nasdaq is up 2.4%

Shares for pharmaceutical companies have fallen following Trump’s threats to slap them with tariffs last night – here’s a quick breakdown:

AstraZeneca dropped 6.80%
GlaxoSmithKline (GSK) dropped by 5.48%
Novo Nordisk – which produces weight-loss drugs Ozempic and Wegovy – has fallen 6.93%

The trade in goods between the two economic powers added up to around $585bn (£429bn) last year.
Though the US imported far more from China ($440bn) than China imported from America ($145bn).
That left the US running a trade deficit with China – the difference between what it imports and exports – of $295bn in 2024. That’s a considerable trade deficit, equivalent to around 1% of the US economy.
But it’s less than the $1tn figure that Trump has repeatedly claimed this week.

More on the China-US trade relationship

Luke Mintz
World at One reporter
Image source, Getty Images
The US is seeing an “erosion” in the dollar’s status as the global reserve currency, the former head of one of the world’s largest investment firms has said.
For context, the dollar is currently the global reserve currency and is accepted around the world as a safe investment even during troubled times.
But Mohamed El-Erian, the former CEO of PIMCO tells BBC Radio 4’s World at One that the recent sell off in US government bonds is “very unusual”.
“When there is a sell-off in the stock market… you would expect yields to come down. but as you’ve just pointed out, yields have gone up,” he says.
Part of the reason, he explains, is the “erosion of [US] Treasuries as a safe haven”.
He adds: “The dollar will remain the reserve currency, but its impact, its influence, its reach, will be much less if this continues. It is an incredible privilege, to use the famous historical word, to be the reserve currency.
“But if you don’t act responsibly, then other countries are going to slowly withdraw that privilege from you.”
Image source, Reuters
European stock markets have sustained losses across the major indexes today.
In France, the Cac 40 ended down 3.34% after falling 2.3% at opening this morning.
The German Dax closed 2.96% lower this evening, after opening to losses of 2.1%.
As as we just mentioned, the UK’s FTSE 100 has finished for the day at a 13-month low with a fall of 2.92%. It had opened at 2.5% down.
Jonathan Josephs
BBC business reporter
Hungary was the only one of the 27 EU member states to vote against imposing tariffs on the US.
Prime Minister Viktor Orban has long been seen as close to President Trump but he also has domestic pressures to consider when it comes to tariffs.
On social media the minister for foreign affairs & trade, Peter Szijjarto, said: “Such measures would cause further damage to European economy and citizens by raising prices. The only way forward is negotiations, not retaliation.”
Whilst politicians across Europe will be concerned about the inflationary impact of tariffs Hungary has struggled with rising prices more than most in recent years, even though it has the extra agility to respond that comes with using its own currency rather than the Euro.
Last month the government even imposed limits, external on how much profit food retailers can make on a group of 30 basic food items.
Hungary also faces a big economic hit from President Trump’s tariffs on cars because its an industry that supports more than 100,000 jobs and accounts for 21% of exports, external.
Image source, PA Media
The London stock market has closed its trading for the day.
The FTSE 100 index finished at 2.92% down at 7,679.48, its lowest since March 2024.
Jacqueline Howard
Live reporter
Image source, Getty Images
In the aftermath of Trump imposing higher tariffs on the so-called “worst offending” countries, global and economic reaction continues to move at pace – so let’s get you up to speed.
The EU has voted in favour of imposing new tariffs on the United States – affecting €20.9bn (£18bn) worth of goods – to be implemented in three stages throughout the year starting from 15 April.
China is refusing to back down after being hit with a 104% tariff from Trump last night, responding with an 84% tariff rate on US goods.
China has already filed a complaint to the World Trade Organization saying the US is violating international trade laws.
Wall Street opened earlier with mixed trading – with the S&P 500 and Down Jones down 0.19% and 0.5% respectively, but Nasdaq up 0.7%.
Asia’s markets closed between 4% to 1% lower (with the exception of Shanghai up 1.3%), while European markets closed between 2.9% to 3.3% lower.
Over on social media, Donald Trump has called on Americans to remain calm – telling them to “be cool” amid the uncertainty surrounding US tariffs.
Our writers in London, Washington and further afield will continue to bring you the latest developments – stick with us.
Image source, EPA
Incoming German Chancellor Friedrich Merz says Europe can rely on his country and calls for a joint response to Trump’s tariffs.
As a reminder the European Union has voted in favour of imposing tariffs on some US imported goods, we have more on that in our previous post.
Merz says that Trump has unleashed new turbulence in financial markets, warning that “we don’t know where that leads”.
“Germany will fulfil its obligations in terms of defence, and Germany is willing to strengthen [our] own competitiveness,” he adds during an event at which he presented his new coalition’s priorities.
Image source, Getty Images
As Trump’s tariffs on the 60 countries he calls the “worst offenders” came into effect there has been a flurry of reaction – including retaliatory measures. Here’s the latest from three key US trade partners:
China

In February, Trump announced a 10% tariff rate on almost all Chinese goods entering the US. China responded with various tariffs of 10-15% on certain US products, the US then escalated to a 20% tariff rate on Chinese goods
On 3 April, Trump raised tariffs to 54% on Chinese imports. China responded with a 34% tariff on most US goods
Last night, Trump imposed an additional 50% tariff, bringing the total on Chinese goods to 104% after China refused to withdraw its retaliatory levy on the US. China has now raised its tariff on US imports to 84%

The EU

The US imposed a 20% tariff on most EU imports, as the bloc will also be impacted by 25% tariffs on cars, steel and aluminium
The EU’s 27 member states today voted to impose countermeasures, responding to the metals tariff which began on 12 March
In stages throughout this year, starting on Tuesday, the EU plans to impose a range of extra tariffs on specific US imports, affecting €20.9bn (£18bn) worth of goods

Canada

Canada is impacted by the 25% tariffs on cars and metals, as well as other goods outside of the free trade agreement it has with the US and Mexico
It has responded with a range of tariffs, including 25% on certain cars coming from the US, and billions of dollars worth of US goods

Charlotte Edwards
Business reporter
Crude oil prices continued to plummet on Wednesday.
WTI crude oil plummeted to $55.60 a barrel, meaning it was down 6.68%. Brent crude oil, which is usually used as a global benchmark of oil prices, fell to $58.84 at one point, a 6.34% drop.
It’s significant to see the price of oil drop below $60 because we haven’t seen such prices since February 2021 – when the world was facing the Covid pandemic.
The price per barrel continues to fluctuate throughout Wednesday and has also risen slightly above $60 at points before falling back down.
How could this affect me?
Crude oil prices impact every day items like petrol for your car. It can also impact the cost of shipping imported goods, heating homes, and production costs for energy intensive industries.
Image source, Getty Images
Donald Trump is urging Americans to keep calm: “BE COOL!”, he says. “Everything is going to work out well. The USA will be bigger and better than ever before!”
“THIS IS A GREAT TIME TO BUY!! DJT” he adds, in another post on his social media platform Truth Social.
Trump also makes reference to an interview with JPMorgan Chase Chairman and CEO Jamie Dimon on Fox News. Dimon accepted, in the interview, it is “totally reasonable” to look for improvements in trade but warned that “trade deals are very large and very complex”.
He added some form of recession in the US is a “likely outcome” due to current uncertainty in the markets.

Page 2

Jonathan Josephs
BBC business reporter
Image source, Getty Images
Today’s announcement of new EU tariffs on US goods are the first such measures from Brussels since Trump began his blitz of tariffs.
The EU is set to confirm which products will be affected by its response to steel and aluminium tariffs within the next 24 hours, but it seems likely that American farmers will be targeted.
Agricultural produce is often the target in trade wars and multiple news agencies are suggesting that poultry, corn and fruit are amongst the goods that will be impacted.
Similarly, motorcycles are in the line of fire. All of that would be reminiscent of tariffs the EU imposed when Trump targeted steel and aluminium in his first term in office.
One difference could be that US whisky isn’t targeted because Trump has threatened even steeper tariffs on European alcohol if it is and the EU is keen to protect a struggling industry.
The Dow Jones Industrial Average – an index of 30 prominent companies listed on stock exchanges in the US – fell as soon as the market opened a little while ago.
See the moment below:
Natalie Sherman
New York business reporter
It’s another hugely jumpy day on Wall Street.
Shares of the three leading indexes in the US are up in early-morning trade.
The Dow is up about 0.9%, the S&P 500 has risen 1.2% and the Nasdaq is trading 2% higher.
But there have been sharp moves up and down – an indication that buying and selling is likely to remain intense, as investors try to position themselves in an uncertain business environment.
Image source, Getty Images
The world needs to start acting differently in the wake of US President Donald Trump’s tariffs, Keir Starmer says, adding that a trade deal with the US or changing the rates of tariffs against the US will not be enough.
“Simply thinking that any change in the rates, or any deal is going to be enough, to my mind is wrong,” the prime minister tells ITV, adding “we’ve got to step up and act differently”.
“We are actually, there’s a changing world, we’re entering a new era. We have to think and behave in a way that reflects that”.
He says that the UK is negotiating with the US and hopes to “improve the situation”.
Jonathan Josephs
BBC business reporter
The new tariffs that the EU has announced on the United States will affect €20.9bn (£18bn) worth of goods.
I’m told they will be brought in three phases with the first set coming into effect on Tuesday next week on €3.9bn worth of stuff the US sells to EU countries.
A month later, on 15 May another €13.5bn of goods will be impacted, followed by a further €3.5bn from 1 December.
These tariffs are in response to the 25% import taxes President Trump imposed on all steel and aluminium and came into force in mid-March. They applied to both the EU and the rest of the world.
The delay in retaliating shows how EU trade policy isn’t able to move as quickly as the US because all 27 member states need to vote on any new tariffs.
However in its statement announcing the tariffs the EU did make clear that “these countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome”.
Confirmation of which goods the EU is targeting is expected within the next 24 hours.
Michael Race
Senior economics and business reporter
The bell has sounded and trading has restarted on the New York Stock Exchange after a turbulent Wednesday for Asian and European stock markets.

The S&P 500 index has opened down marginally by 0.19%
The Dow Jones Industrial Average has fallen 0.5%
And the tech-dominated Nasdaq index is bucking the trend, up by 0.7%

European Union member states have voted in favour of imposing tariffs on some US imported goods, a statement from the European Commission confirms.
The new tariffs will come into effect from 15 April.
“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” the statement reads.
“The EU has stated its clear preference to find negotiated outcomes with the US, which would be balanced and mutually beneficial.”
Image source, Getty Images
US Treasury Secretary Scott Bessent warns US partners that pursuing a stronger alliance with China would have dire consequences.
It comes as Spain’s economy minister on Monday suggested Beijing could be a crucial strategic partner for his country and others in Europe.
But speaking at a summit in Washington DC, Bessent says aligning more with China would be like “cutting your own throat”.
In an interview with the Fox Business Network earlier, he also reacted to China’s “unfortunate” decision to impose 84% tariffs on US good.
China doesn’t “have the edge here”, he says, noting it sells more to the US than it buys. “So they can raise their tariffs, but so what?” he says.
China is deemed one of Trump’s so-called “worst offenders” and has been slapped with a 104%tariff on Chinese goods entering the US.
But the country isn’t backing down, here’s how China has responded:

China announces a 84% tariff on US imports, an increase from 34%, which will come into effect at 12:01 Beijing time on 10 April
From tomorrow, they are adding 12 American companies to an export control list – a catalogue of items and products that may require an export licence to leave a country
They are also adding six American companies to the unreliable entity list, including AI companies
China has already filed a complaint to the World Trade Organization, where it says the US is violating international trade laws

Dharshini David
Deputy economics editor
China has just imposed 84% tariffs on the US, after Trump’s levies of 104% on Chinese goods kicked in this morning. Ouch.
This is a trade war which seems to – second-by-second – get ratcheted-up. And so does the risk of recession.
We won’t know for many months how this is going to play out, but this is one of many warning signs to be aware of.
Remember, for every five goods China sells to the US, the US only sells one to China – which leaves you wondering: Who will be more damaged by this?
It seems the tariffs may be more damaging for China than they are going to be for the US. But, make no mistake, it is American consumers who are in the firing line here, and Chinese businesses.
Lana Lam
Live digital reporter
It’s passed 13:30 in London and 08:30 in Washington. If you’re just joining us, here’s the latest:

This comes after China’s foreign ministry insisted the country will “fight to the end” against Trump’s tariffs if compelled, and accused the White House of “bullying practices”
In his first comments since China’s announcement, Trump told businesses now is a “great time” to move to the US
Before steeper tariffs on around 60 nations came into effect today, Trump said many countries were “dying” to negotiate deals. “I’m telling you these countries are calling us up, kissing my ass,” he said
The Bank of England said Britain is well placed to weather the storm but warns of future risks as the UK government said it’s “confident” it will get a US trade deal

We’ll continue to follow the latest developments so stick with us.
In his first comments since China announced it will raise its levy on US imports to 84%, US President Donald Trump is encouraging companies to move to the US.
Writing on social media platform Truth Social, the US president says: “This is a GREAT time to move your COMPANY into the United States of America.”
“ZERO TARIFFS, and almost immediate Electrical/Energy hook ups and approvals. No Environmental Delays. DON’T WAIT, DO IT NOW!”, he adds.
Stephen McDonell
China correspondent, reporting from Beijing
The finance ministry has just made an announcement, increasing the 34% tariff on all US goods coming into China to 84%.
Obviously, that’s a clear blow to every US company wanting to sell into this huge market and – no doubt – it’s going to send more shockwaves through the markets, especially in the US.
There may well be other measures from Beijing so, it appears, there’s no backing down from the Chinese government.
Beijing said there would be resolute counter-measures if Donald Trump made good on his promise to increase the US tariff on Chinese goods to 104% – we’re now seeing the beginnings of that.
Across China, state media reporters on social media have been ridiculing other countries going with the begging bowl to Washington to take the tariffs off, saying it plays right into Trump’s hands.
The contrast that’s being made is that Beijing says it supports multilateral trade efforts where rules apply to everybody.
There would be some sympathy for that, especially in South-East Asian countries like Thailand, Cambodia and Vietnam, which have been hit very hard by US tariffs.
Image source, Getty Images
China has added six more US businesses to its “unreliable entity” list, its commerce ministry says.
This includes aerospace and defence company Sierra Nevada Corporation, as well as AI firms.
This comes after the Chinese finance ministry announced 84% tariffs on goods imported from the US, after Donald Trump’s 104% levies on Chinese imports kicked in today.
China previously added PVH – the company that owns designer brands Calvin Klein and Tommy Hilfiger – to the list.
The so-called “unreliable entities list” makes it harder to do business in China, as companies included may face sanctions and fines.
Image source, EPA
European markets – which were already down – have dropped further after China’s announcement of 84% tariffs on US imports.
The FTSE 100 index of the largest firms listed in the UK has dropped 3.3% so far today, while the German Dax is down 4% and the French Cac 40 is down 4%.
Attention will soon turn to how US markets react to the news, when they open at 14:30 BST. Stick with us for the latest.
China’s finance ministry has announced an 84% tariff on all goods imported from the US.
The ministry says that these new charges will take effect from 12:01 CST (05:00 BST) on 10 April.
Charlotte Edwards
Business reporter
The price of Brent crude oil has dropped to below $60 a barrel. This is the lowest price since February 2021, when the Covid-19 pandemic pushed prices down as less people used oil.
Brent crude oil is used as a global benchmark of oil prices. Analyst Ashley Kelly suggested that the White House wants oil prices to go down as this could be an advantage for the US.
How could this affect me? The price of Brent crude oil can impact the cost of many things we use every day, including the price of car fuel and heating your home.
It can also impact the cost of shipping imported goods, as well as the production cost for energy intensive industries.
Image source, Getty
Image caption,
Russia’s foreign ministry spokesperson says that the country is increasing its interactions with China
Russia has accused the US of flouting international trade rules by imposing 104% charges on imports from China.
“Washington doesn’t seem itself binded by the norms of international trade law,” Russian foreign ministry spokesperson Maria Zakharova says.
When Donald Trump raised border taxes on Chinese goods by 10% in February, China complained to the World Trade Organization (WTO), which settles trade disputes.
Zakharova says the tariff decisions taken by Trump “violate the fundamental rule of the WTO”.
Russia has been spared from the list of over 60 countries hit by Trump’s latest tariffs, but the foreign ministry spokesperson tells reporters that the country is taking steps to minimise any possible damage by increasing its interactions with China.
Dharshini David
Deputy economics editor
We’re caught in a tempestuous world – but the finances of British households, businesses and banks are well placed to weather the storm.
That was the conclusion from the regular meeting of the Bank of England committee which oversees financial stability.
It noted that the upheaval to global trade arrangements and increased uncertainty triggered by President Trump’s tariff announcements could affect financial stability by depressing growth – risks relevant to the UK, given its exposure to trade and large financial sector.
However, with households holding the smallest amount of debt relative to incomes since 2001, they and most businesses were judged highly resilient – and the banking system as being well equipped to cope, even if conditions deteriorate.
But the panel highlighted several risks including a further breakdown in global cooperation and more sharp falls in financial markets.
As ever, journalists were herded into an oppressive basement deep under the Bank to be briefed on this report, watched over by a security guard.
The war room ambience felt apt.
The lessons of the 2008 financial crisis have resulted in a safer, more robust financial system – but also means the Bank remains on high alert.
Shaimaa Khalil
Tokyo correspondent
Image source, Reuters
At the closing of trading today, Tokyo was stunned.
Not just because it’s looking into billions of dollars in projected losses, and a rollercoaster market ride – but as the US’s key economic and security ally in Asia, Japan feels betrayed.
Tokyo’s relationship with DC could not be more different from Beijing. One is a friend and the other is a foe. And yet it feels like Japan too must swallow the ramifications of the global reciprocal tariffs.
There’s a “how could you do this to us” sentiment in the political air here.
Japanese Prime Minister Shigiru Ishiba said the “whole country needs to be united” in the face of a “national crisis.”
The government has set up over a thousand consultation desks at financial institutions and business organisations nationwide, from Hokkaido in the north to Miyako Island in the south, to field tariff-related inquiries.
“We need to rectify what needs to be rectified, without getting emotional,” Ishiba said addressing parliament last week, calling for diplomatic composure and reiterating Tokyo’s commitment to the US economy.
But with the 25% levy on cars already in place, the economic danger is real for the US ally. Japan’s car industry which makes up for 20% of its total exports is projected to suffer a $17bn loss in potential exports if these tariffs continue.
A disaster scenario that Tokyo wants to avoid – although is is still unclear how.

Page 3

Image source, Getty Images
“You would laugh if you weren’t crying.”
Jay Foreman, whose company Basic Fun! is known for the popular Care Bear toys, says he had to put out a notice earlier this week to halt shipments from China to the US.
“If it doesn’t get sorted out, them I’m going to sell down the inventory that I have in my warehouse and pray,” he adds.
It’s not just business owners who might be checking their calculators this morning, here’s how a couple of other Americans feel about the new charges on imports:
Catherine Foster, a 58-year-old from Florida:
“I’m probably a couple of years away from retiring and I don’t know if I’m going to be able to… Trump is not a king and I feel like our congress and senate is letting us down, both parties, by not pushing back.”
Ben Maurer, a 38-year-old from Pennsylvania:
“Tariffs are a necessary evil… Trump’s out to prove a point, that we’re here to get stuff done and we’re going to get stuff done.”

Our New York business reporter Natalie Sherman has more reaction here

Mitchell Labiak
Senior economics and business reporter
The Bank of England’s Financial Stability Report also gave us some insight into how businesses are feeling about the impact of tariffs.
It found that a UK economic downturn was seen by 62% of 55 companies surveyed between 27 January and 24 February as a “key source” of risk to the financial system, the highest level the survey had recorded in over a decade.
The same survey found just under half of respondents believed a UK economic downturn was the “key risk most likely to materialise”, jumping by a fifth since the November survey.
Mitchell Labiak
Senior economics and business reporter
Image source, EPA
Rising trade tensions from US President Donald Trump’s raft of tariffs has “contributed to a material increase in the risk to global growth” and financial stability, the Bank of England says.
US tariffs and other countries’ response also increases “uncertainty… for inflation globally” while the cost of government borrowing has “fallen in response to the US announcement”.
However, it says, “market functioning… remains orderly” and “UK household and corporate borrowers have remained resilient”.
It “maintained its judgement” that UK banks could support households and businesses even if the economy turned “substantially worse than expected”.
The comments published today are part of the Bank’s first Financial Stability Report (FSR) since last November – meaning it is the first time the FSR has had a chance to consider Trump’s tariff policies.
Jean Mackenzie
Seoul correspondent
Image source, EPA
Image caption,
South Korean Trade Minister Cheong In-kyo speaks to reporters after arriving in the US
South Korea’s trade minister is in Washington to try to negotiate a tariff deal with Donald Trump’s team. The country, which sells large numbers of cars and electronics to the US, is being hit with being hit with 25% blanket tariffs because of its large trade surplus.
Seoul does not want to go down the Chinese road of retaliatory tariffs, and get into a trade war with America. Instead, it’s hoping to convince Trump to lower tariffs by promising to buy more and invest more in the US.
But it’s been on the backfoot when trying to strike a deal because it doesn’t currently have a president, due to the country’s ongoing political crisis.
Last night, Trump took a call with acting president Han Duck-soo for the first time, raising hopes here.
In a post on his Truth Social platform, Trump described the call as “great”. But he referred to South Korea’s trade surplus as “tremendous and unsustainable”. He said the pair also discussed payments for the “big time military protection” Washington provides Seoul.
South Korea and the US are military allies. There are tens of thousands of US troops stationed here, which help defend against North Korea.
There is a chance Trump may agree to lower tariffs if Seoul agrees to pay more for its defence. Trump said he was using tariff negotiations to try to strike other deals, calling it “one-stop shopping”.
Tom Singleton
Technology reporter
Image source, EPA
Think of who would be affected by the global turmoil the tariff war is causing and MrBeast – the world’s most successful YouTuber – probably isn’t the first person who springs to mind.
But as well as making viral videos, MrBeast, whose real name is Jimmy Donaldson, has a number of side hustles, including a chocolate business, Feastables.
While it is a US company, America isn’t exactly renowned as a cocoa producer, meaning their chocolate bars rely on imported raw ingredients – now facing tariffs.
The Trump administration hopes its import levies will encourage more companies to set up in the US. For Feastables, the opposite is true.
“Ironically because of all the new tariffs it is now way cheaper to make our chocolate bars we sell globally NOT in America,” MrBeast posts on X.
“We’ll figure it out. I feel for small businesses though. Could really be a nail in the coffin for them,” he adds.
His intervention is bad news for the White House because it’s a real world example of the potential unintended consequences of its policies.
But secondly – and possibly more importantly – it represents one of the most influential voices for young Americans publicly criticising the Trump tariff policy.
Jennifer Clarke
BBC News
Image source, Reuters
Tariffs are taxes charged on goods bought from other countries.
Typically, they are a percentage of a product’s value. For example, a 25% tariff on a $10 (£7.59) product would mean an additional $2.50 (£1.90) charge.
Companies that bring the foreign goods into the country have to pay the tax to the government.
For decades, Trump has argued that the US should use tariffs to boost its economy.
He says they will encourage US consumers to buy more American-made goods, increase the amount of tax raised and lead to huge levels of investment in the country.
However, there are warnings that the move could harm the world economy, and push up prices for consumers in the US and around the globe.

Read our full tariffs explainer here

Faisal Islam
Economics editor
There has been “aggressive” selling of long term US government bonds in the last 48 hours.
Bonds are essentially IOUs issued by the government to raise funds for its operations and projects.
A government sells bonds to investors, who lend it money in return for regular interest payments and the eventual repayment of the full amount when the bond matures.
Investors selling off long term government bonds is not typical behaviour, as until now they have been considered the safest of “safe haven” assets.
The effective interest rates for 10 and 30 year US borrowing has spiked very fast, and came among weak demand for US debt at an auction yesterday.
This is a “firesale of US Treasuries”, according to one Bank of America analyst.
This could have direct consequences for the price of US mortgages and business lending.
The question is what scale this is happening on – is China selling off some of its $759bn US government bonds?
Is this the unwinding of heavily leveraged bets on the overall shape of the US bond market – what is known as the “basis trade”?
It is difficult to know what might be worse here. But trade wars of this once-in-a-century size do not stay contained to the flow of the goods. They spread into credit markets and currency wars too.
Michael Race
Senior business and economics reporter
Mortgage lenders in the UK are looking at cutting rates amid the global economic turmoil following the introduction of US tariffs, including a 10% tax on goods being imported to the US from the UK.
According to the financial data company Moneyfacts, the average two-year fixed mortgage rate today is 5.3%, down from 5.32% on Tuesday. The average five-year fix is 5.15%, down from 5.17%.
Predictions have grown that interest rates in the UK could be cut by more than expected this year, if the Bank of England feels it needs to try to make borrowing money cheaper in order to give the economy a boost.
But it’s a balancing act for the Bank. Its main job is to keep the inflation rate, which is how much prices rise on an yearly basis, at 2%. Currently, inflation is 2.8%.
The UK has got off lightly on tariffs, so far anyway.
It avoided Trump’s “worst offenders” list and hit with a 10% “baseline” import duty – half of the 20% tariff placed on the European Union. This is on top of the 25% levies on aluminium, steel and cars.
UK Chancellor Rachel Reeves says Prime Minister Keir Starmer has been working on a trade deal with his US counterpart since visiting Washington back in February.
And Starmer himself said on Tuesday that trying to negotiate a deal which mitigates the levies is better than retaliatory tariffs.
But when might a deal be reached? Lisa Nandy, the culture secretary, refused to put a date on it this morning, but insisted the government was working “at pace”.
Image source, EPA
Back on UK shores, Culture Secretary Lisa Nandy tells BBC Radio 4’s Today programme she is confident that Britain can get a trade deal with the US.
“We are committed to making sure we keep cool heads, we don’t have knee-jerk reactions. We don’t want to see the sort of retaliation and trade wars that have been happening overnight between the US and China,” she says.
Asked if she can give a timeframe, she says “we absolutely feel the urgency”, without giving an exact date.
But she adds: “We are working at pace. We are very confident that we’ll get there.”
Stephen McDonell
China correspondent, reporting from Beijing
Image source, Reuters
China is positioning itself as a free trade champion standing up to the “bully” regime of Donald Trump – and using social media commentaries from party-controlled media to do so.
Just as the new 104% tariffs came into effect, an account linked to China Central Television posted that Trump’s strategy is clearly to pick off countries one by one as they go to Washington with the begging bowl.
In this way, it argues, President Trump can steamroll the less powerful.
China, on the other hand, would “show the whole world our firm determination to safeguard the multilateral trade system”.
This could go down well with the likes of Cambodia, Laos and Vietnam. They’ve all been hit with massive US tariffs and the impossible demand from President Trump that they buy as much stuff from America as it buys from them.
So, consider the timing of a meeting Xi Jinping has just held in Beijing when he reportedly said China needs to “deepen all-round cooperation” with its neighbouring countries and, crucially, to “strengthen supply chain ties” with them.
This is how you use Trump’s trade chaos to increase your political and commercial influence internationally.
In the early hours of this morning – for us in London, at least – additional US tariffs on 60 countries deemed by Trump to be the “worst offenders” came into force.
Here are all the new tariffs by trading partner, with those with the highest share of US imports at the top:
We can bring you a few more lines from Trump’s speech at a Republican Party dinner last night.
Speaking about trading partners wanting to negotiate deals with the US in the wake of tariffs, he said China – which has been hit with 104% tariffs – “want to make a deal…they just don’t know how to get it started”.
Japan, South Korea, Vietnam, Cambodia and Taiwan are among key Asian countries who are hoping to speak with the Trump administration about tariffs, with some facing up to 49% on goods imported to the US.
“I’m telling you these countries are calling us up, kissing my ass,” he told the audience. “They are dying to make a deal.”
Media caption,
The US president says countries are telling him they’ll ‘do anything’ for tariffs relief
Paul Kirby
Europe digital editor
The EU’s 27 member states are expected to approve a big list of US products that will face tariffs from next week in response to President Trump’s initial 25% import tax on European steel and aluminium last month.
The European tariffs will be imposed in three stages.
From next Tuesday, 15 April, the plan is to slap 25% tariffs on an initial list which is likely to include motorbikes, luxury boats and orange juice. American bourbon, wine and dairy were on the original EU list but have been dropped after lobbying from Europe’s wine industry.
The initial measures were due to kick in on 1 April but were held back to give talks a chance. EU Commission chief Ursula von der Leyen’s pitch for a zero-tariffs deal was rejected out of hand by Trump.
A second stage will kick in from mid-May, which is expected to feature textiles, leather goods, eggs, dental floss and poultry.
Then from 1 December counter-tariffs will be slapped on soybeans and almonds. Soybeans are used in animal feed and make up the biggest value for US exports to Europe.
A swathe of new 20% US tariffs has kicked in today on EU imports – and today’s list being voted on in Brussels doesn’t deal with those. The European Commission is busy preparing further counter-measures which could come out next week.
Jennifer Meierhans
Senior economics and business reporter
Drugmakers’ stocks in Europe slipped after Trump reiterated plans for a “major” tariff on all pharmaceutical imports while speaking at a Republican Party dinner yesterday.
Medicines had previously been exempt from tariffs according to White House documents., external Trump did not say when and by how much he plans to raise taxes on pharma imports. But the change in stance prompted a wild swing in stocks.
British drugmakers AstraZeneca and GSK topped the losers board in London, both down over 4%. Europe’s most valuable company Novo Nordisk, which produces weight-loss drugs Ozempic and Wegovy, fell around 5% in Copenhagen. French pharmaceutical group Sanofi and German biotech firm Sartorius also dropped around 5%.
The president has said the tariffs will incentivise drug companies to move their operations to the US. But analysts and companies have raised concerns about the difficulty in moving manufacturing there.
Image source, Reuters

20 January: Trump uses his inauguration speech to outline plans to overhaul the trade system “to protect American workers” and introduce tariffs on foreign countries “to enrich our citizens”
1 February: He announces a 25% levy on Canadian and Mexican imports to the US – and an additional 10% on China
3 February: Mexico and Canada reach a deal to pause US tariffs for one month
10 February: Trump announces a 25% import tax on all steel and aluminium entering the US
4 March: The White House places an additional tariff on Chinese imports
12 March: Trump’s 25% steel and aluminium tariffs take effect
26 March: The White House reveals new 25% duties on car and car partscoming into the US – those take effect from 2 April
2 April: Trump announces the US will impose “reciprocal tariffs” on certain countries, as well as a universal 10% levy on imports from all other countries
5 April: That 10% “baseline” tariff comes into effect
9 April: Custom tariffs on roughly 60 countries – dubbed the worst offenders – come into effect

We can bring you more reaction now from China, after it was hit with a 104% excess on some exports to the US.
The US will not solve problems like its trade deficit and “lack of industrial competitiveness” through the tariff measures, China says in a White Paper published today.
“They seriously damage global trade order and the security and stability of global industrial and supply chains,” the document reads.
The paper sets out that China has “always” maintained China-US trade relations are “mutually beneficial”.
It adds that it is “natural” for the two countries to have “frictions” but underlines they need to respond each other’s core interests.
Beijing is willing to communicate with Washington to resolve them, it adds.
Image source, EPA
We’re hearing the first response from China since 104% duties kicked in.
Speaking at a news conference, China’s foreign affairs spokesperson says that the Chinese people’s “legitimate right to development must not be deprived” by charges on its goods.
Lin Jian accuses the US of “bullying practices”, and urges Trump’s administration to “demonstrate an attitude of equality, mutual respect and reciprocity” in order to resolve the dispute through dialogue.
He says that if Trump “insists” on provoking a trade war, “China will be compelled to fight to the end”.
Emily Atkinson
Live editor

At 05:00 BST this morning, 60 of America’s biggest trading partners were hit with higher US tariffs on goods
They include 104% levies on Chinese products – a figure effectively doubled overnight by President Trump after Beijing refused to back down on its threat of retaliatory measures
The message from Beijing is that they can ride this out, our China correspondent says, with new measures expected
The deepening trade war has provoked further turmoil on the world’s stock markets – in the last hour, shares in Europe slumped again, following similar falls across Asia
Overnight, Trump again defended his tariffs, saying their effect would be “legendary, in a positive way”

We’ll continue to bring you rolling updates on all the key developments across the day – stay with us.
Speaking at a Republican Party dinner yesterday, Donald Trump said the tariffs were “going to be legendary, in a positive way”.
“Many countries…have ripped us off left and right, but now it’s our turn to do the ripping,” he said.
Trump has also described the tariffs as “somewhat explosive” and “amazing”, claiming that import tariffs were already generating “almost $2bn (£1.5bn) a day” for the US.
And earlier this week, as stock markets around the world reacted to the tariffs, Trump made this comment: “Sometimes you have to take medicine to fix something.”

Page 4

Donald Trump has chosen to impose a wide range of different tariffs on other countries. But how did he come up with the figures?
BBC Verify’s Ben Chu takes a look at the calculations:
Michael Race
Senior economics and business reporter
After rebounding marginally yesterday, all the main European stock markets are down on opening.

In France, the Cac 40 was down 2.3% shortly after open
Germany’s Dax was down 2.1%
The UK’s FTSE 100 fell 2.5% at the open and is now around 2%

Michael Race
Senior economics and business reporter
Trading has just started in the UK for Wednesday.
The main stock market of the country’s biggest companies opened 2.5% down in response to Trump’s global tariffs on goods being imported to the US coming into effect.
Michael Race
Senior business and economics reporter
A trade war is a conflict in which two or more countries impose import taxes or limits on the number of goods coming into their own countries from overseas.
Countries often impose such measures as a way of protecting their own domestic industries from foreign competition.
Trump sees tariffs as a way of boosting US manufacturing of goods and creating more jobs in the sector – but there are consequences to his decisions. Prices for goods could well rise, as explained here.
The US president’s main beef is clearly with China, however, one could argue the trade conflict between two of the world’s largest economies hasn’t started this week but has been dramatically escalated. That’s because of tariffs on certain goods being imposed since Trump’s first term of office in 2018.
For the rest of the world, this trade war is new though, and how many countries, including the UK, respond to Trump’s tariffs will be the next development to watch out for.
Stephen McDonell
China correspondent, reporting from Beijing
It’s much easier for China to be saying it will stand up to Trump than for other countries.
That’s because even though there has been so much trade coming from China into the US, it only amounts to around 2% of China’s gross domestic product (GDP).
China has a huge domestic market to fall back on.
So when the Beijing government says it can ride this out, I think a lot of economists would say they can, certainly better than anyone else in the world.
Stephen McDonell
China correspondent, reporting from Beijing
Image source, EPA
These tariffs are a huge hit for anyone in China who wants to sell into the US market.
It’s just a waiting game now as we prepare for the Chinese government to reveal its promised counter measures.
It could come later today or tomorrow – but there will definitely be some sort of response.
The message from Beijing has been that they can ride this out.
Donald Trump’s spokesperson says there’s a belief that China has to negotiate – well, China doesn’t think it has to do anything.
This is a massive, powerful country and Beijing is saying it won’t kowtow to a bully.
Here’s a simple guide to understanding some of the key concepts and jargon that might be making their way onto our page today:

A stock market crash: A steep and sudden collapse in the price of stocks or of the broader stock market
Bear market: This occurs when a stock market enters a long-term decline (so more than two months). If you have a fall of 20%, then you enter a bear market
Recession: A period where the economy shrinks for two three-month periods (or quarters) in a row – our business editor assesses if we’re heading for one
Tariffs: Taxes that countries charge on goods that are brought in from other countries – it is the companies that pay the tax to the government, but that added cost can be passed on to the customer
Reciprocal tariffs: The same concept as above, but reversed. Put simply: a country says “what they do to us, we do to them” – BBC Verify looks at whether Trump’s tariffs fit this definition

Dharshini David
Deputy economics editor
By imposing the largest tariffs on American importers and households in a century, President Trump has in effect, built a trade wall – aimed at reducing an influx of goods and preventing jobs migrating the other way, with a vision of reinvigorating American manufacturing.
For while that sector made a quarter of global goods 30 years ago, now it’s responsible for one in seven.
But this policy has raised a more immediate heightened risk of recession – in the US and globally – say economists.
And these extra tariffs won’t just threaten growth in the countries directly affected but in the UK too, thanks to complex supply chains and vulnerability to demand elsewhere.
However, lower oil prices and the increased chance of cheaper imports diverted to this country may lessen inflation – and, investors think, pave the way for several more rate cuts from the Bank of England this year, easing the pressure on millions of households.
Image source, Getty Images
Among the nations hardest hit by these tariffs are China (104%), Vietnam (46%) and Cambodia (49%).
Several US-based global brands such as Nike and Apple, which manufacture their goods outside the US, have suffered steep falls in their share prices over the last few days – and are expected to be impacted further by the reciprocal tariffs.
Let’s take a look at some of these:
China

Apple makes most of its hardware in China and some in India
H&M manufactures most of its clothing in China and Bangladesh

Vietnam

Gap – an American clothing retailer that also operates Old Navy, Banana Republic and Athleta – sources about 21% of its clothing from Vietnam, according to an analysis by Prof Sheng Lu at the University of Delaware
About half of Nike and 39% of Adidas trainers are made in Vietnam
Samsung also has significant production operations in Vietnam

Donald Trump’s latest tariffs have come into effect – but what do they mean for international trade?
The president of global logistics firm Flexport expects significant impacts, though they might not be felt immediately.
Explaining how the they will work, Sanne Manders tells BBC Radio 4’s Today programme: “When it gets loaded on a vessel now it will be taxed with 104%, if it was loaded before the cut-off date then it will still be under the old regime.
“So we will still see cargo arriving in the US in, let’s say, the next two weeks, that will be under the old regime.”
Although he notes that for China there have already been first 10% and then 20% tariffs introduced since Trump took office.
Peter Bowes
North America correspondent, reporting from Washington
Image source, Reuters
The full weight of Donald Trump’s “Liberation Day” strategy is now in force.
But as additional tariffs are imposed on imports from countries with which America has significant trade deficits, many US consumers fear rising prices on everyday goods such clothes and food, with some people stockpiling while they can.
China and the US, the world’s two biggest economies, are now engaged in an escalating stand-off.
The 104% on Chinese goods represents the highest tariff in living memory.
Other countries, according to Donald Trump, are keen to try to negotiate a deal, with delegations from Japan and South Korea en route to Washington.
The drama of the past week appears to have fuelled divisions within the White House, exploding yesterday into a feud between Elon Musk and President Trump’s trade adviser Peter Navarro, who the Tesla boss described as “dumber than a sack of bricks”.
The White House press secretary Karoline Leavitt has dismissed their public sparring, saying “boys will be boys”.
Tariffs on Trump’s so-called “worst offenders” have kicked in. But how do they work exactly?
Nike trainers are often imported to the US from Vietnam (a country that manufactures half of the company’s shoes).
As of today, the Southeast Asian nation faces a 46% tariff on goods imported by the US – before Trump’s announcement, that rate was just 14%. As a reminder, the tax is paid by the importer.
So here’s what changes for an importer buying $100 trainers:

Before: The trainers cost the importer $114 (the $100 cost, plus a 14% tariff)
After: The trainers cost the importer $146 (the $100 cost, plus a 46% tariff)

The exact price at a retail store will depend on how much of the cost Nike – or any firm importing to the US – decides to pass on to the customer.
Image source, Reuters
Fan Wang
Reporting from Singapore
While China braces for a 104% tariff on many of its exports to the US, anti-Trump sentiment is rising on the Chinese internet.
This morning, more than half of the top 10 trending topics on popular social media platform Weibo are about the US or tariffs.
Bear in mind, however, that the platform is heavily monitored and controlled- meaning what we can see there now, has been filtered by censors.
The top trending hashtag, with more than 15,000 comments, was started by state broadcaster CCTV and reads: “The US is fighting a trade war while asking for more eggs.”
The broadcaster had noted in its postthat the US is seeking greater egg imports from EU countries to deal with a shortage at home, while imposing tariffs on the bloc.
“Doesn’t Trump want to do everything himself? Ask him to raise chickens!” reads a top-liked Weibo comment.
Image source, Getty Images
Most Chinese imports to the US now face a 104% tariff, as the trade war between the world’s two biggest economies shows no signs of slowing down.
“We’ve now reached an impasse that will likely lead to long-term economic pain,” Alfredo Montufar-Helu, a senior adviser to the China Center at The Conference Board think tank, told the BBC earlier before the latest tariff took effect.
It’s not clear how the US is going to find alternative supply for Chinese goods on such short notice.
“I think the US is overplaying its hand,” says Deborah Elms, Head of Trade Policy at the Hinrich Foundation in Singapore.
She is sceptical of Trump’s belief that the US market is so lucrative that China, or any country, will eventually bend.
“How will this end? No-one knows,” she says. “I’m really concerned about the speed and escalation. The future is much more challenging and the risks are just so high.”
Read more here on how analysts think this trade war will end.
The trade in goods between the US and China added up to around $585bn (£429bn) last year.
But the US imported far more from China, about $440bn, than China imported from America, which was about $145bn.
In 2024 the biggest category of goods exports from China to the US were electronics such as smartphones, laptops, and telecoms equipment, as well as toys. A large amount of batteries, which are vital for electric vehicles, were also exported.
Going the other way, the biggest export from the US to China was soybeans – primarily used to feed China’s estimated 440 million pigs.
The US also sent aircraft, engines, pharmaceuticals and petroleum to China.
Tessa Wong
Live page editor
Good morning to our readers in the UK and Europe. If you’re just joining us, here’s what you’ve missed:

US President Donald Trump’s higher tariffs on about 60 countries importing to America have come into effect, including a 104% tariff on most Chinese goods, following tit-for-tat levies
Hours earlier, Trump confirmed the higher tariff on China after Beijing missed a deadline to drop its retaliatory tariff on US goods
Beijing has yet to respond, though state media have said that China “does not fear trouble” and would “fight till the end”
Many places in Asia including US allies Japan, Taiwan and South Korea have also been hit with higher tariffs
Asian markets opened lower today then dropped even further after the tariffs kicked in around midday in the region

Stay with us as we bring you the latest developments.
India’s central bank has lowered interest rates for the second consecutive time this year.
Reserve Bank of India governor Sanjay Malhotra said in a statement that tariffs have exacerbated uncertainties.
This comes as it cut its key lending rate by 25 basis points to 6%.
Image source, Getty Images
Peter Hoskins
Business reporter, Singapore
Let’s take a look at how Asia-Pacific stock markets are trading in the wake of the Trump’s global tariffs coming into full effect.
Major indexes across the region had opened lower earlier today. After the tariffs kicked in around midday in Asia, they then extended their losses.
That’s despite several announcements by countries of measures to support investors and businesses.
One notable exception is the Shanghai exchange, which opened a little higher and is still on a lunch break that started before the new levies kicked in.

Nikkei 225 (Japan) -4.3%
Kospi (South Korea) -1.4%
Shanghai Composite (China) +0.2%
Hang Seng (Hong Kong) -1.5%
Taiex (Taiwan) -6.2%
ASX 200 (Australia) -1.7%

Image source, Getty Images
The Chinese government has yet to respond to the 104% tariff kicking in, but we are starting to see an initial response in state media.
A commentary was published on Yu Yuan Tan Tian, a social media account affiliated with state broadcaster CCTV, at 12.01pm local time – the very minute the tariff took effect.
“We don’t create trouble, but we don’t fear trouble,” the post said, adding that “Chinese people don’t like pressure and threats”.
The Weibo post reiterated that China would “fight till the end”, though it “didn’t shut the door of dialogue”.
“China won’t show weakness and won’t compromise. We will show to the whole world our firm determination to safeguard the multilateral trade system.”
Shares in India have been trading lower at the open.
The Nifty 50 index is down by 0.6% while the Sensex fell by 0.4%.

Page 5

A pro-Beijing commentator has accused the United States of behaving like “a bull in a China shop” by imposing massive tariffs on Chinese goods.
Speaking earlier today to the BBC Newsday programme, Victor Gao, who is vice-president of the Center for China and Globalization in Beijing, said the tariffs “will not bring manufacturing jobs back to the United States”.
“President Trump and his administration must wake up to sanity and use reason rather than maximum bullying against China and so many other countries.”
Gao predicts that the Chinese government “will not blink” in what he considers a “total war” when it comes to trade.
“There is no panic buying in China, whereas you have massive amount of panic buying in the United States.”
“China is a stabilising force, whereas the United States is fast being perceived as a disruptive force,” he said.
Tariffs on imported goods to the US from roughly 60 countries, dubbed the “worst offenders” by Donald Trump, have come into effect.
Trump officials say these countries charge higher tariffs on US goods, impose non-tariff barriers to US trade or have acted in ways undermining American economic goals.
China now faces the biggest tariff of 104%. This is a combination of 20% levied earlier, 34% announced last week, and 50% imposed by Trump hours earlier following Beijing’s refusal to withdraw a retaliatory tariff on US goods.
Others include Japan with a 24% tariff and Cambodia with 49%.
The custom tariffs are significantly more than the 10% baseline tariff on imports to the US from most nations that took effect on 5 April.
You can read more here:
It’s just gone past midnight in Washington DC. This means US President Donald Trump’s higher tariffs for goods imported from about 60 countries – which he has called the “worst offenders” – have kicked in.
These include a 104% tariff on China, following tit-for-tat levies imposed by the two superpowers. We’re waiting to see how Beijing reacts.
Stay with us as we bring you the latest developments and market reaction.
In case you have just joined us, here is where Asia-Pacific stock markets stand ahead of tariffs taking effect at 04:01 GMT (05:01 BST).
Several officials in the region have announced support measures for investors and businesses.

Nikkei 225 (Japan) -2.6%
Kospi (South Korea) -0.8%
Shanghai Composite (China) +0.2%
Hang Seng (Hong Kong) -1.2%
Taiex (Taiwan) -4%
ASX 200 (Australia) -1.2%

New Zealand’s central bank has cut interest rates as it looks to counter the risks of US tariffs.
On Wednesday, it lowered its benchmark lending rate by 25 basis points to 3.5%.
Policymakers said they moved “as the extent and effect of tariff policies become clearer”.
The country was hit by a 10% tariff on its imports to the US over the weekend which Wellington has said it will not retaliate against.
Low interest rates generally help to stimulate an economy, as it reduces the cost of borrowing for individuals and businesses.
Image source, Getty Images
A US senate hearing got testy yesterday when Trump trade representative Jamieson Greer was questioned about tariffs on Australian products.
Citing a free trade agreement between the two countries, Democratic Senator Mark Warner asked Greer why Australia had been “whacked” by the 10% blanket fee.
Greer answered that the fee addressed the US trade deficit, to which Warner replied: “Sir, you are a much smarter person than that answer”.
Media caption,
Watch: US senator probes trade chief on Australia tariffs
Annabelle Liang
Business reporter, Singapore
In just over an hour, US levies on many China-made imports are set to rise to 104%.
Some products like cars, semiconductors, steel and aluminium will face lower taxes.
Beijing has shown no signs of backing down, as it pledges to place its own taxes on American imports.
But some analysts say the tariffs will hit China hard, forcing it to restructure its economy and rely heavily on domestic consumption.
In reality, any tariff upwards of 35% will wipe out all the profits that Chinese businesses make when exporting to the US or South East Asia, said Dan Wang from the Eurasia Group consultancy.
“Any tariff above that is only symbolic,” she said, citing industry figures.
She also warned that China is likely to miss its annual growth target of around 5% if its economy is closed off to trade. “Growth is going to be much lower since exports contributed to 20% to 50% of growth since the Covid pandemic.”
Tim Waterer from brokerage KCM Trade said import taxes of 104% will not be “sustainable [for China], given the export dynamics of the Chinese economy”.
“In the short term they can handle it, but to weather these tariff levels over the longer term would require China to make structural changes such as rebalancing their economy,” he added.
The White House has confirmed that cheap Chinese small parcels will no longer be exempt from tariffs starting 2 May, according to an amendment to Trump’s executive order published today.
These items will be subject to a duty rate of 90% of their value or $75 per item, which will increase to $150 after 1 June.
Previously, goods from China and Hong Kong valued at less than $800 were given the duty free de minimis treatment – meaning they were allowed to enter the US tariff-free.
The change will most noticeably affect shipments from fast fashion brands like Shein and Temu.
Louise Loo, a lead economist at the Oxford Economics company, has told the BBC that “retaliation and counter-retaliation from the Chinese are almost a given at this stage”.
The Singapore-based economist says China’s retaliatory measures are likely to be proportionate, and suggests that Beijing is “leaving the door open to trade talks”.
“We think between Trump, Xi, and… Powell [Jerome Powell, Chair of the Federal Reserve of the United States], Trump will likely blink first,” she adds.
“The worst case scenario – if bilateral trade flows completely disappear between the two – would cost China 3% of GDP,” Ms Loo adds. “It might not have the fiscal means to completely offset that this year, but the longer term trend is that China’s trade has continued to penetrate into other emerging markets, which will mitigate that fallout.”
This “worst case scenario” seen by experts as being unlikely at this stage.
Image source, Getty Images
Image caption,
Trump has confirmed the US will impose 104% tariffs on some Chinese goods
Asian countries have largely diverged in their reactions to the import fees. While China has hit back with retaliatory tariffs, others have hit the phones to negotiate.
Trump shared on Truth Social that he’d had a “great call” with South Korea’s acting president Han Duck-soo, posting that , externalthe two “have the confines and probability of a great DEAL for both countries”.
He claimed “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”
Meanwhile, Reuters reports India is also in talks with the White House and could implement a cut on US products imported into India of up to $23bn (£17.9bn) in an attempt to lower its own fees for sending products to the US.
Media caption,
Watch: How Beijing is responding to Trump’s 104% tariffs
“Beijing is standing firm in the face of these latest threats from Donald Trump” and accusing the US of being “a bunch of bullies”, says the BBC’s China correspondent Stephen McDonell.
China is expecting 104% tariffs from the US in a matter of hours, but it has said that it won’t budge on tariffs.
Click the video to hear more.
Shares in mainland China and Hong Kong are trading lower as President Trump stays firm on his tariff threat.
The Shanghai Composite lost 1.8% while the Hang Seng fell by 2.8%.
China has vowed to retaliate against US tariffs, which will take effect in the next few hours.
“The escalation of trade tensions between the US and China will no doubt lead to a sharper decline in China’s exports, with spillovers to domestic investment, the labour market, consumption and confidence,” says Qian Wang, Asia Pacific chief economist from the Vanguard investment firm.
Image source, Getty Images
Shares in Taiwan have fallen by more than 1% on Wednesday.
This came after President Trump said he told Taiwanese chip giant TSMC that it would face a 100% tax if it doesn’t build more factories in the US.
He also criticised the Biden administration for providing a grant to TSMC, the world’s largest maker of advanced semiconductors.
TSMC shares were broadly flat in early trading, while shares of Apple supplier Foxconn lost 3%.
The Taiwanese government has activated a $15bn (£11.7bn) stabilisation fund to support its financial market, which has slumped on tariff expectations.
South Korea has moved to support its car industry which it says will take a “significant” hit from US tariffs.
Emergency support measures announced by the government on Wednesday include funding for carmakers, as well as tax cuts and subsidies to boost domestic demand.
It comes a day before the US is set to put a 25% levy on all foreign car imports.
The US is the largest export market for South Korean carmakers like Hyundai and Kia. Businesses in the country exported almost $35bn (£27.3bn) worth of vehicles to the world’s largest economy last year.
Image source, Getty Images
Image caption,
Many cars made by South Korean companies are shipped overseas
Pharmaceuticals were exempted from the sweeping tariffs President Trump announced last week.
But Trump has been saying that he will impose pharmaceutical-specific tariffs, claiming that it would help shift drug production to the US.
Much of pharmaceutical supply chains are based in China, India and Europe.
Experts have warned that despite the exemption of pharmaceuticals from Trump’s tariffs (for now), tariffs on other materials involved in drug production can affect the cost of drugs for consumers.
Media caption,
Watch: President Trump says he’ll soon tariff pharmaceuticals
President Trump is about 50 minutes into his speech at the National Republican Congressional Committee dinner in Washington DC.
He just told the audience that the US is “very shortly” going to announce a “major tariff” on pharmaceuticals.
He claims the move will pressure pharma companies to “leave China” and build manufacturing capacities in the United States – in order to sell to the US market.
Trump did not mention any specific details.
The White House has published a document confirming that China’s 34% tariff rate – set to come into effect in a few hours – will be increased to 84%.
Chinese exports to the US had already been subjected to 20% tariffs. This means that the total tariffs on Chinese goods will reach a whopping 104%.
The move comes “in recognition of the fact that the PRC has announced that it will retaliate against the United States”, the White House statement reads.
After Trump unveiled a 34% so-called “reciprocal” tariff on Chinese goods, China slapped its own 34% counter-tariff on US goods.
Shares in Australia have also fallen on Wednesday.
The country’s benchmark ASX 200 is trading 2.1% lower.
If this continues, the index would lose almost all its gains made a day earlier.
Shares in Japan fell in early trading on Wednesday.
Tokyo’s Nikkei 225 was about 3% lower.
The index had jumped by 6% a day earlier, after heavy losses at the start of the week.
Meanwhile, South Korea’s Kospi was broadly flat.
We are waiting for stock markets in Asia to open, starting from 01:00 BST.
Major indices in the region saw steep falls on Monday, but recouped some of the losses on Tuesday.
Here is how they closed:

Nikkei 225 (Japan) +6%
Kospi (South Korea) +0.3%
Shanghai Composite (China) +1.6%
Hang Seng (Hong Kong) +1.5%
Nifty 50 (India) +1.7%
ASX 200 (Australia) +2.3%

Page 6

Media caption,
Watch: Trump says tariffs will be ‘legendary’ ahead of 104% tax on China
US President Donald Trump is currently speaking at a Republican dinner in Washington DC, and he tells the audience his tariffs are “going to be legendary, in a positive way”.
Trump says that representatives from Japan are on their way to negotiate tariffs.
“We’re making deals and people are paying tariffs, countries are paying tariffs,” Trump says to the crowd, noting the 104% tariff on China is just hours away.
Wendy Cutler, Vice President of the Asia Society Policy Institute, spoke with the BBC earlier about the impact of tariffs on the US-China relationship.
“Things are going to get worse before they get better,” she said.
Cutler said she was sceptical the US would make it to the negotiating table with China.
She said even if they do, it would be “tough” for the Americans.
Image source, Getty Images
In less than four hours, the next phase of Trump’s sweeping tariff plan will go into effect.
Included in this round is a massive increase in levies against China.
The White House reiterated that China will face a total of 104% tariffs from midnight local time.
Meanwhile, China is standing firm, accusing Trump of acting like a bully and refusing to rescind its own retaliatory tariffs on the US.
But it’s not just China and the US, the two biggest economies in the world, who are locked in a trade war.
Some 60 other countries, dubbed by the Trump administration as the “worst offenders”, will also get hit with higher tariff rates from 00:01 EDT.
This comes after the 10% levy Trump ordered on nearly all of America’s trading partners last week.
Markets across the globe have lost trillions of dollars as investors react to uncertainty and instability. While US markets rose at opening today, by closing bell it had wiped off those gains and once again finished in the red.
Now, the world is waiting to see what happens when Trump’s new tariffs kick in.
Stick with us and we’ll bring you the latest.
With the US stock market ending another day at a loss, investors are facing “a crisis of confidence”, according to one financial analyst.
“The rollercoaster ride of the last few days demonstrates the level to which rumour and speculation can move the market in such a tense environment,” Bankrate’s Stephen Kates said.
After closing low on Monday, the US index S&P 500 had a rally on Tuesday morning. By the afternoon, however, that recovery had been chipped away.
Kates said the news of additional tariffs on China “threw cold water on the market rally”.
“We are still likely to see large and persistent volatility in the coming days and weeks as new information comes out,” he said.
Image source, Handout
Among the countries hoping to negotiate a route out of US tariffs as soon as possible is Bangladesh, the world’s second largest maker of clothing.
In the next few hours, it faces a 37% tax imposed on anything sold into the US.
Bangladesh has pledged to increase the goods it buys from the US in return for a three month reprieve.
But Rubana Huq, chairperson of Mohammadi Group – a conglomerate focussed on the garments industry, told Shaun Ley on BBC NewsHour that they hadn’t received a reply yet from the Trump Administration.
“There hasn’t been any response so far, we haven’t seen any tweets whatsoever… all we can do is just keep our fingers crossed and hope for the best – and hope for a tweet to come along I guess,” she said.
“For the economy, since we are so heavily garment dependent, it’s going to be ominous – you can imagine the impact on the workers – we can’t afford to shut shop, we’ll just have to go on.”
James Kelly
UGC Hub
Scott McCoy, 28, is a married charity worker from Florida. He tells the BBC he thought the Republicans – and Trump – were “supposed to be capitalists” but that the tariffs do not support that.
The “staunch conservative” – as he calls himself – hopes that the tariffs are a “leverage”, but says it seems like Trump “thinks trade is a zero-sum game instead of the win-win situation free trade actually is”.
“It’s frustrating because I wish I had a capitalist, free market party to choose from and it’s feeling like more and more that’s not the case,” he explains.
If the tariffs stay, Scott believes there will be a recession, and says he would also consider voting for the opposition, as would his conservative friends.
“I hate the thought of voting for a Democrat in the future, but if it means getting rid of these tariffs, I would think about it,” he says.
Listen to BBC Newscast’s analysis on China’s retaliation to the US tariffs on BBC Sounds now.
James Cook is joined by Ian Williams, author of the Fire of the Dragon, China’s New Cold War and Sophia Gaston, visiting fellow at Kings College London on the latest episode of Newscast.
On the episode, Chief International Correspondent Lyse Doucet also joins to talk about the US-Iran nuclear deal talks happening this weekend.
Image source, Getty Images
Donald Trump has just finished speaking and has signed executive orders aimed at increasing US coal production.
During his speech, he touched briefly on the “somewhat explosive” tariffs announcement he made in the Rose Garden last week.
He didn’t take questions from reporters, but one did manage to shout as he was exiting the room: what is your message to business leaders who are concerned about the tariffs?
Trump did not respond.
This might not be the last time we hear from the US president before his tariffs on some 60 countries come into effect later tonight – but will bring you those lines when and if they come.
Bernd Debusmann Jr
Reporting from the White House
Media caption,
Watch: Trump claims ‘money is pouring in’ as tariffs take effect
I’m currently in the East Room in the White House, where President Trump – after a long and winding speech on coal – has also addressed tariffs.
Speaking to several dozen lawmakers, cabinet members, industry executives and coal miners, Trump defended the tariffs, claiming they’re already bringing $2bn a day.
Making many of the same points as he has in recent days – and that his press secretary made earlier today – Trump says “we’ve had talks with many, many countries” who wish to negotiate on tariffs.
“Our problem is, we can’t see that many that fast,” he adds. “But we don’t have to because the tariffs are on and money is pouring in at a level we’ve never seen.”
Trump has also claimed that industry executives have expressed desires to set up plants and businesses in the US – where they won’t be tariffed.
The president, however, has not commented on the market reaction to the tariffs, nor about criticisms that have come from Democrats and some Republicans.
Soon after, he pivoted to the US-Mexico border and immigration.
Image source, Getty Images
We’re listening to Trump speak at the White House right now. He is there to sign an executive order on coal, but he’s also speaking about his wide range of tariffs on trading partners.
The president says his recently announced tariffs have been “somewhat explosive”, but he maintains they were vital for his vision of the US.
Trump says money is “pouring in” from the tariffs he has already implemented.
“The tariffs are on,” he adds.
Image source, Getty Images
Let’s take a look at how some of the major US tech companies ended the trading day.
Tesla’s stocks were down 5.45% at closing, while Apple’s shares fell by 5.22%.
Nvidia, another tech giant, had stocks fall 2.01%.
And Amazon’s shares were also down 2.88% at closing.
The so-called “magnificent seven” – which is made up of Nvidia, Alphabet, Amazon, Apple, Microsoft, Meta, and Tesla – has accounted for a large chunk of the more than $5tn (£3.9tn) the S&P 500 index has lost in value in recent trading sessions, Reuters news agency reported yesterday.
The markets in the US have closed after another volatile trading day in the shadow of Trump’s tariffs.
Stocks rose at opening in New York earlier today, but then there was a drop.
Here’s where things stand at closing bell:

S&P 500 closed down 1.57%
Dow Jones closed down 0.84%

Image source, Getty Images
BBC’s World Service has been speaking to stockbrokers and traders about what the past few days have been like on the trading floor, following Trump’s global tariffs announcement.
In the US, stock trader Steve Burns calls the “speed and the magnitude” of the situation “astounding”.
“There were traders that unsubscribed, that left my trading group – they quit and gave up on their trading.”
Luca Della Rocca, Head of Trading at Intermonte, in Milan, Italy, describes it as “scenes” you see “quite a lot” in movies.
“It has turned very stressful, I would say more than I was expecting when I started this job,” he says, adding they have to try and keep “as cool as possible and not pass stress on to the clients”.
In Brisbane, Australia, Jack Strickley – who is a stockbroker at Morgans Financial – says it has been a “busy couple of days” but that communication is “the most important factor” for days like these.
From tomorrow, some vehicles entering Canada from the United States will face 25% tariffs, the Canadian finance department has just confirmed.
The measures were announced earlier in the month.
This will affect:

Non-Canada-US-Mexico Agreement compliant fully assembled vehicles
Non-Canadian and non-Mexican content of CUSMA compliant fully assembled vehicles

In a statement, the department adds the tariffs will remain in place until the US eliminates its tariffs against the Canadian auto sector.
Canada has strongly disagreed with American tariffs, and since March 13 imposed 25% tariffs against a list of US products including steel, aluminium, tools, and sports equipment amounting to $29.8bn (£23.2bn).
Image source, AFP
From just past midnight local time (05:01 BST), China will face 104% tariffs from the US, after refusing to dial back on their own retaliatory action. The rest of Trump’s “reciprocal” tariffs will also go ahead, directly impacting about 60 countries and territories
Global leaders are still denouncing the tariffs. UN Secretary-General António Guterres says “nobody wins” in a trade war, and France’s President Emmanuel Macron urges Trump to “reverse his decision”
Almost 70 countries have approached the US to begin negotiations over the tariffs, the White House said
Trump’s economic advisor Kevin Hassett says the discussions are positive, and that there are “a lot of concessions on the table”. It will be down to Trump to decide on any deals
As for the stock markets, US stocks have rallied, and the big European markets were in the green, but that doesn’t mean the worst is over, analysts warn
Sarah Wells, the founder of a small US-based company whose products are manufactured in China, calls the tariffs “unsustainable” and says she is “devastated” at the price rises she faces from the tariffs
Stick with us for more developments, reaction and analysis.
Nomia Iqbal
North America correspondent
Image source, BBC / Cai Pigliucci
Image caption,
Tad works in an auto-repair shop
One of the reasons Trump has given for the tariffs is to see a revival of industrialisation to regions that have since long been forgotten.
Just east of Pittsburgh, a town once known for its thriving steel industry is now recognised for its natural beauty and industrial decay. Much of the area is rundown with dilapidated houses, old buildings with weeds growing on them and abandoned stores.
President Trump points to towns like these as an example of the impact of global trade and as places he wants to see boom again.
Tad, who owns an auto repair shop with his dad, tells the BBC he welcomes the tariffs.
“It’s definitely going to hurt for a little bit, but once it’s resolved, I think it’ll be over,” he explains.
But at a popular local diner – while there is similar support – some are not as optimistic, instead worried that the tariffs will make their lives tougher.
“You gotta protect yourself because I think we’re in for a recession really,” says Joe, adding he had to move stocks around.
United Nations Secretary-General António Guterres says “nobody wins” in a trade war, and that the impacts will be felt most acutely by the poorest countries.
Speaking to reporters, he says: “Trade wars are extremely negative. Nobody wins with a trade war, everybody tends to lose.
“And I’m particularly worried (about) the most vulnerable developing countries in which the impact will be more devastating.”
France’s President Emmanuel Macron has called on Trump to “reverse his decision” on the implementation of global tariffs.
Speaking to a Le Parisien reporter during a visit to Egypt, Macron says “Europe never wanted chaos”.
He adds that the European Commission is leading the response of EU-member states .
Trump is set to impose tax imports on the EU of 20%.
Bernd Debusmann Jr
Reporting from the White House
We’ve just wrapped up a news conference which was, more than most, completely dominated by one single topic: the tariffs.
Aside from the confirmation that some goods from China will be subject to 104% tariffs starting tomorrow, there was nothing particularly noteworthy, or new, in Karoline Leavitt’s remarks about trade.
What we did see clearly, however, is that the White House is digging into its position and – so far – is shrugging off criticism or concern about the market reaction. It does not appear Trump, or the White House, will be backing down anytime soon.
We haven’t heard from Trump directly today, but in about an hour he is due to speak at the signing of an executive order aimed at reviving the US coal industry.
He may, of course, also remark on tariffs or a few questions.
I’ll be in the room for that event as well – please stay with us for more updates.
Image source, AFP
We’ve been listening to White House press secretary Karoline Leavitt deliver a rapid-fire 40 minute briefing. Here’s what she said:
On China: Leavitt confirmed that 104% tariffs will begin at 00:01 local time (05:01 BST) on Wednesday, after China refused to withdraw its retaliatory tariffs against America. She added that Trump believes China wants to make a deal.
On negotiations: almost 70 countries have reached out to negotiate the tariffs, she told reporters. Leavitt said any deals will be focused on whether they are good for the American worker. They will have a “tailor-made” approach to each country.
On delays: there will be no delays, or extensions, against the tariffs, Leavitt said. Just before her briefing she spoke to Trump, and he said he expects the tariffs to come into effect from April 9.
On Musk and Navarro: Leavitt was asked about the public clash between trade advisor Pete Navarro and Elon Musk. She said “boys will be boys”, and that it shows Trump is willing to hear from different points of view.

Page 7

White House Press Secretary Karoline Leavitt has now ended her briefing.
As a reminder, we heard confirmation during the briefing that 104% tariffs on some goods imported from China will start tomorrow.
Leavitt is asked if countries that have been hit with the 10% “baseline” tariff rate could negotiate a lower levy. Leavitt responds that she will leave that to the president, but that the tariffs will go into effect on schedule.
Leavitt also claims that Democrats have hit out against US trade deficits in the past, for example against countries like China.
Media caption,
Watch: White House says it was a ‘mistake’ for China to retaliate on tariffs
Leavitt is now asked which countries the White House is having serious discussions with. She again tells the room that there are almost 70 countries that are in touch and trying to negotiate.
Leavitt is asked about under what conditions Trump speak to China’s President Xi Jinping about a deal.
She says Trump “believes that China wants to make a deal”.
It was a “mistake” for China to retaliate, Leavitt argues, which is why they are implementing 104% tariffs against them.
If China reaches out, Trump will be “incredibly gracious”, but work in America’s interests, she adds.
Bernd Debusmann Jr
Reporting from the White House
Just a short while ago, Leavitt was asked about what has become a very public clash between trade adviser Pete Navarro and Elon Musk.
The Tesla and SpaceX executive referred to Navarro as a “moron” on his social media platform X earlier.
Leavitt described the pair as having “very different views on trade” and said that diverse opinions are welcome, rather than complicating messaging on tariffs.
“Boys will be boys,” Leavitt said. “I think it also speaks to the President’s willingness to hear from all sides,” she added.
Asked about how the tariff plan was decided – and who was involved in those negotiations – Leavitt says the plan was discussed by the entire trade advisors team over many meetings.
She adds that the president made the final decision after being presented with a number of different options.
“The entire trade team is on board,” she says.
Leavitt is now asked about Trump’s “one-stop shopping” comment on Truth Social. The reporter asks if the plan is to bring world leaders to the US to talk about tariffs.
She says Trump will have a “custom, tailor-made” approach to each country, which could include discussions on topics such as foreign aid or military presence.
She adds that negotiations will be based on “America’s needs”.
Trump is not considering an extension or delay on the tariffs, Leavitt tells reporters.
She spoke to him just before the briefing, and this was not his mindset – he expects the tariffs to go into effect.
Media caption,
White House: Trump is ‘not considering an extension or delay’ to tariffs
Tariffs of 104% on Chinese imports will be collected beginning at 00:01 local time (05:01 BST) tomorrow, White House Press Secretary Karoline Leavitt confirms.
Leavitt is now asked about US Trade Secretary for Commerce Howard Lutnick’s comments that jobs like iPhone manufacturing could come to the US.
Leavitt says those jobs could “absolutely” come to the US as part of this on-shoring plan.
“[Trump] believes we have the labour, we have the workforce, we have the resources to do it,” she says, adding the president is looking at all jobs, and that he wants them all to come back to the US.
She then touts Apple’s investments in the US, saying they would not have put in that much money if they did not believe there was potential for growth in the US.
Leavitt is now asked about low-income countries such as Bangladesh and Madagascar being hit with high tariffs, and how Trump wants to correct trade deficits with these countries.
She says the reciprocal tariff rates were focused on monetary tariffs that countries have imposed on the US and also non-monetary tariff barriers and regulations that have been put into effect.
She says these were “carefully crafted numbers” and that the “world knows that they need the United States of America”.
Leavitt is questioned now about the possibility of a recession in America. Goldman Sachs put the odds of a recession at 45% in the next 12 months.
The press secretary is asked if the president agrees with advisor Peter Navarro there will be no recession.
Leavitt doesn’t directly answer the question, but instead says she can speak for “the optimism” that the president sees in the economy.
She also says the largest tax cuts in American history are coming.
She is pushed again on the recession question.
“Be mindful of the whole economic approach that this administration is taking every day,” she replies.
Bernd Debusmann Jr
Reporting from the White House
Much of the questioning has, so far, revolved around the issue of countries seeking out the US side for negotiations.
The issue that has confused many, however, is that White House official and Trump allies – such as trade advisor Peter Navarro, have repeatedly said that these tariffs are “not a negotiation”.
At the same time, the White House repeatedly, and proudly, has pointed to the dozens of countries that Leavitt says have the phone “ringing off the hook”.
“The entire administration has always said that President Trump is willing to pick up the phone,” she said a short while ago, adding that officials have been directed to work on “tailor made deals with each and every country that calls”.
How this differs from a negotiation remains unclear.
Leavitt is now asked about a timeline or deadline for trade negotiations, after US Treasury Secretary Scott Bessent said these conversations could take months.
She says Trump is focused on whether these deals are good for the American worker.
“We always move at Trump speed here at the White House,” she says, adding it’s incredibly fast and that all options are on the table.
Leavitt is now taking questions.
When asked if she can explain the shift in the White House from saying that “tariffs are non-negotiable to asking countries to begin negotiating”, she says “it is a non-negotiable position that the United States has faced a national security and economic crisis because of the unfair trade practices by countries around the world”.
She adds the administration has always said the president is “willing to pick up the phone and talk”.
Leavitt says Trump directed his trade team to have “tailor made trade deal” with each and every country that calls the US for a deal, adding that the president is “focussed on putting America first”
She says she rejects that there has been an evolution: “We said on day one that the president will pick up the phone and have a listening ear.”
Karoline Leavitt says that Donald Trump’s “pro-growth economic agenda” will be fully realised in the coming months.
“Costly red-tape” is being eliminated daily, she adds.
She says their efforts will end the cost-of-living crisis that’s “crushed” Americans.
Bernd Debusmann Jr
Reporting from the White House
We’ve just begun the press briefing at the White House, and Press Secretary Karoline Leavitt dived right into tariffs soon after beginning.
Accusing the media of “fearmongering”, Leavitt pointed to Israeli Prime Minister Benjamin Netanyahu’s visit as a sign that other countries want to negotiate, along with calls from Japanese and South Korean leaders.
Leavitt says 70 countries have reached out.
“Countries are falling over themselves to reform their unfair trade,” she adds. “These countries greatly respect President Trump in the sheer power of the American market. These countries realise they’ve gotten filthy rich by imposing substantial tariffs on American made products.”
She added that Trump has a “spine of steel” and would not break when faced with retaliatory tariffs, such as from China.
Media caption,
White House: More than 70 countries ‘reached out’ to negotiate tariffs
White House Press Secretary Karoline Leavitt has started her briefing, going through a number of announcements from the last week and what’s on the agenda for President Trump in the next few days.
You can follow live by pressing the Watch Live button at the top of the page.
Image source, Reuters
While we wait to hear from the briefing room, let’s take a look at what is happening at the Senate.
We’re still hearing from US Trade Representative Jamieson Greer at the Senate’s Finance Committee annual hearing on the topic of US President Donald Trump’s trade policy.
Greer says he does not trust economists’ predictions that tariffs will drive up inflation, arguing that they got it wrong in Trump’s first term.
“They said there would be inflation because of tariffs and it went down,” he says.
“When I hear them now saying the same thing I just don’t trust what they’re saying.” Greer claims the highest inflation was seen under Joe Biden in areas like housing, education and healthcare.
When if companies will pass costs from tariffs on to consumers, Greer says companies will figure out how to allocate costs between themselves, and that these costs “rarely get down to the consumer”.
Bernd Debusmann Jr
Reporting from the White House
Image source, Bernd Debusmann Jr/BBC
I’ve just taken my seat in the Brady Briefing Room of the White House, which is slowly staring to fill up ahead of a briefing from Press Secretary Karoline Leavitt that is due to begin shortly.
There’s a great deal to discuss today, from potential Iran talks to immigration and legal issues about the administration’s efforts to cut staff at federal agencies.
The prime topic, however, is almost certainly going to be tariffs.
So far, the administration has dug in to defend the policy in the face of mounting uproar – even among some Republicans and members of his inner circle, namely Elon Musk.
Stay with us for more updates.
Donald Trump’s economic adviser, Kevin Hassett, says there are “a lot of concessions on the table” from countries keen to negotiate a deal with the US ahead of the start of tariffs tomorrow and suggests that some countries could dodge the new import taxes if Trump changes his mind.
In an interview with Fox News, later shared by Trump on his Truth Social platform, National Economic Council director Kevin Hassett said: “Right now we’re managing a massive number of requests for negotiations” from various countries who want to try to reach a deal with the US.
Hassett says meetings had been prioritised with Japan and South Korea.
He adds: “There are a heck of a lot of concessions on the table, in the end the president of course is going to be the one who decides whether the deal is good enough to change his mind about the tariffs.”

Page 8

Mitchell Labiak
Business reporter
Major European markets are closed now, mostly ending the day up.
With the big European markets in the green today, it might be tempting to think the worst is over on the market turmoil front. Not necessarily.
Markets tend to rise a little after sharp falls as some investors “buy the dip” or wonder if a sell-off has been too hasty, but only a fraction of the value wiped out since Trump’s “Liberation Day” tariffs announcement has been clawed back.
Take the FTSE 100 index of the largest firms listed in the UK. It closed up 2.7% today, but it is still hovering around levels not seen since this time last year, having sunk over 8.1% since the tariff announcements.
Meanwhile, the German Dax closed up 2.5%, while the French Cac 40 closed up 2.5% – but both remained much lower than at the start of this month.
The real question is what markets will do over the coming weeks and months as tariff negotiations continue.
Sarah Wells, the founder of a small US-based company whose products are manufactured in China, calls the tariffs “unsustainable”.
Wells, who runs a Virginia-based business selling handbags and apparel catered towards new mothers, tells BBC’s The World Tonight that some of her products now have a “96.6% tariff rate coming out of China”.
“Honestly I’m devastated”, she says, “we believe very strongly here in the American dream – to be self-made, to be your own boss, to be successful… but I feel quite abandoned by our government”.
She explains that there is “no way” she could raise prices to sustain her business, adding: “If it continues to go up, there’s just no way – the honest answer here is that businesses like mine will just close.”
Nick Edser
Business reporter
Image source, Reuters
US stocks have rallied as investors hope that trade agreements can be completed to remove US President Trump’s tariffs.
Sentiment appears to have improved as Trump said a team from South Korea is heading to Washington to negotiate on a deal and said “things are looking good”, while US Treasury Secretary Scott Bessent said Japan had sought talks.
The S&P 500 index has risen 3.8%, the Dow Jones is also 3.8% higher and the Nasdaq has added 4.1%.
Tech stocks are helping to drive the rises, with Nvidia up 7% and Tesla climbing 6%.
The rally in Europe’s stock market has been sustained as well, with the UK’s FTSE 100, Germany’s Dax and France’s Cac 40 all up more than 3%.
However, several analysts have said confidence in the market remains fragile, with AJ Bell investment director Russ Mould noting that “share prices seem to be hanging upon President Trump’s every word on the subject of trade and tariffs”.
Image source, Getty Images
Let’s take you back to the senate hearing now, which is examining Trump’s trade representative Jamieson Greer.
Greer is questioned by Senator James Lankford, who asks if there is a timeline for negotiations being completed.
Greer says there isn’t, because the “outcome is more important” than the speed, but adds that they are working quickly.
He adds that the president has been clear he doesn’t plan to have exclusions or exemptions.
Graham Fraser
Technology reporter
Image source, Reuters
President Trump’s tariff barrage has got the US embroiled in a war of words with a number of countries around the world.
Now it seems the fiery rhetoric has spread to his own team.
In a television interview, Trump’s top trade advisor Peter Navarro described Elon Musk as a “car assembler”, saying his Tesla vehicles – while made in the US – were comprised of components sourced from around the world.
Navarro said he wanted those parts to be manufactured in the US instead.
Musk, who is advising Trump on cutting government spending, hit back on his social media platform, X.
He posted: “Navarro is truly a moron. What he says here is demonstrably false. Tesla has the most American-made cars. Navarro is dumber than a sack of bricks.”
Of course, online spats are nothing new for Musk. But this one highlights an uncomfortable truth: that some of Trump’s biggest supporters are among those who may lose out as a result of his policies.
Media caption,
Tariffs will go into effect coupled with ‘immediate negotiations’
We’re hearing some more now from US Trade Representative Jamieson Greer, who says Trump’s so-called reciprocal tariffs will go into effect from tomorrow.
The US are negotiating with around 50 countries, but they can’t wait on the outcome of these talks, he adds.
The tariffs will go into effect coupled with “immediate negotiations”, Greer says.
The tariffs going ahead tomorrow apply to almost all countries, but there are some exempt, that are instead already under a 10% tariff on all imports which took effect on 5 April.
The UK, Argentina, Australia, Brazil and Saudi Arabia won’t face the higher tariffs being enforced tomorrow.
Image source, Reuters
The Senate’s Finance Committee annual hearing on Trump’s trade policy has begun, as Chair Mike Crapo defends Trump’s tariffs, arguing that they will “expand opportunities for Americans”.
Member Rob Wyden asks to focus on one simple question: “What is the plan?”
He says the White House has provided “no clear message” of how the tariffs were determined, what they’re supposed to accomplish, and how long they will be in place.
He says in the last few weeks Trump’s advisers have “repeatedly changed” their answers to these questions.
US Trade Representative Jamieson Greer says tariffs are aimed at addressing the “national emergency” that Trump declared last week.
The US faces “unfair, unbalanced, non-reciprocal trade”, which has driven them to this so-called national emergency, Greer tells the hearing.
He says almost 50 countries have approached him to negotiate on the tariffs, which Greer calls a “welcome” move.
Image source, Getty Images
South Korea’s acting president, Han Duck-soo, has said in an exclusive interview with CNN that there are no plans to push back on newly-imposed US tariffs.
Speaking on Tuesday, Han rejected a suggestion his country might band with neighbouring China to fight back against the new levies, saying “we will not take that route”.
“I don’t think that kind of fighting back will improve the situation dramatically,” he says, adding that the move would not be “profitable”.
Han told CNN that South Korea “clearly would like to negotiate” with the US and that the two countries have a “very strong alliance”.
Earlier we reported that US President Donald Trump said things are “looking good” in terms of a deal with South Korea.
Image source, Getty Images
US Trade Representative Jamieson Greer will be testifying to the Senate’s Finance Committee this morning in Washington DC at 10:00 local time (15:00 BST).
Firstly we will hear from the chairman, Mike Crapo, and then from member Rob Wyden, before Greer faces questions from the hot seat.
With tariffs dominating global news, Greer will likely face a grilling on Trump’s “Liberation Day” announcement and the impact it’s had since.
He’s described the “reciprocal” tariffs as “the golden rule for the golden age”.
It’s the first of two grilling’s he faces – tomorrow Greer will sit in front of the Ways and Means Committee.
We’ll be bringing you key lines over the next few hours as the hearing progresses.
The New York Stock Exchange has opened following the ringing of the bell, with stocks on the rise after days of losses following Trump’s tariffs announcement last week.
Media caption,
Watch: US stocks rise at the open following days of losses
Bernd Debusmann Jr
Reporting from the White House
Image source, Bernd Debusmann Jr/BBC News
It’s a very sunny but unseasonably cold day at the White House, where officials have dug in to defend President Trump’s tariff plans despite mounting criticism.
Publicly, most officials from within Trump’s cabinet have insisted the tariffs are working.
This morning, for example, Treasury Secretary Scott Bessent said “we’re up to 70 countries” that have contacted the White House “for how to come and negotiate”.
Others, including Trump himself, have downplayed market reaction to the tariffs, calling any downturn a temporary adjustment that will eventually correct itself.
There are, however, cracks appearing inside Trump’s orbit.
These cracks were starkly highlighted by Elon Musk, who has publicly criticised one of the chief proponents of the tariffs, trade advisor Pete Navarro.
Behind the scenes, Musk has reportedly directly appealed to Trump to reverse course.
Nearby, on Capitol Hill, a number of prominent Republicans – and Trump backers – have warned against tariffs, Kentucky Senator Rand Paul tells reporters he is concerned that the tariffs could have a significant impact on the party’s political success in the future.
At 13:00 EST (18:00 BST), Press Secretary Karoline Leavitt will hold a news briefing, which is almost certain to focus heavily on the tariffs. I’ve already heard reporters here in the White House basement preparing questions on the tariffs, and the Republican criticisms of them.
The bell has sounded and trading has restarted on the New York Stock Exchange.

The S&P 500 index has opened up 3.4%
The Dow Jones Industrial Average has risen 3.5%
And the tech-dominated Nasdaq index is 3.7% higher

Image source, EPA
Yesterday, US stock markets saw some of the sharpest swings since the Covid-19 pandemic. Here’s how the US markets looked at their close on Monday:
The S&P 500 index, which tracks the share prices of 500 US companies, ended the day down about 0.2%. During the early trading on Monday, it briefly dropping more than 20% since its most recent peak in February, but surged more than 7% in a matter of minutes following rumours tariffs could be put on hold.
The Dow Jones Industrial Average, which looks at blue-chip stocks, ended down 0.9%, in its third consecutive day of losses.
The Nasdaq index for tech companies however, was roughly flat and ended the day up 0.1%.
Wall Street’s opening bell will ring within the next few minutes, stay with us.
Image source, Reuters
In a post a few moments ago on his Truth Social platform, US President Donald Trump says he believes China will strike a deal on the possible 104% tariffs the US has threatened to impose.
He writes: “China also wants to make a deal, badly, but they don’t know how to get it started. We are waiting for their call. It will happen!”
Trump adds that he has just spoken to the acting president of South Korea about tariffs.
“We talked about their tremendous and unsustainable surplus, tariffs, shipbuilding, large scale purchase of U.S. LNG, their joint venture in an Alaska Pipeline, and payment for the big time Military Protection we provide to South Korea,” the US president writes.
He adds that a team from South Korea is headed to Washington to negotiate on a deal “and things are looking good”.
The trade war between the world’s two biggest economies shows no signs of slowing down – Beijing has vowed to “fight to the end” hours after US President Donald Trump threatened to nearly double the tariffs on China.
That could leave most Chinese imports facing a staggering 104% tax – a sharp escalation between the two sides.
Smartphones, computers, lithium-ion batteries, toys and video game consoles make up the bulk of Chinese exports to the US. But there are so many other things, from screws to boilers.
With a deadline looming in Washington as Trump threatens to introduce the additional tariffs from Wednesday, who will blink first?
“It would be a mistake to think that China will back off and remove tariffs unilaterally,” says Alfredo Montufar-Helu, a senior advisor to the China Center at The Conference Board think tank.

Read more: China is not backing down from Trump’s tariff war. What next?

Stephen McDonell
China correspondent
China is certainly not backing down in the face of the latest statements from Donald Trump – who has threatened to impose an extra 50% tariff on Chinese goods, on top of the 54% already implemented.
Beijing is instead labelling the Trump administration as a bunch of “bullies” and says it has its own counter-measures ready to go if the US president makes good on his threat to increase the tariff level to a minimum of 104%.
Today is the day that Trump gave as the deadline for the Chinese government to remove tariffs on US goods, which were put in place following Trump’s last round of tariffs on Chinese goods.
Beijing has said it’s not going to do that.
It’s not exactly clear what Beijing has in store for the US in the coming days, but state media reports say the US agricultural sector is likely to take another hit, with measures that could include a complete ban on US poultry.
In addition, there could be a possible end to the cooperation between the US and China on trying to crack down on the fentanyl trade, and also even a ban on all US movies being shown in Chinese cinemas.
Image source, Reuters
The stock market as a whole is made up of the prices of many thousands of companies, all around the world.
As companies grow, they issue shares. For example, the largest companies in the UK have shares which are bought and sold on the London Stock Exchange.
Their collective performance is often quoted in a blizzard of numbers.
Many people’s initial reaction to “the markets” is that they are not directly affected, because they do not invest money.
Yet there are millions of people with a pension – either private or through work – who will see their savings (in what is known as a defined contribution pension) invested by pension schemes. The value of their savings pot is influenced by the performance of these investments.
So big rises or falls can affect your pension, but the advice is to remember that pension savings, like any investments, are usually a long-term bet.

Read more: How does it affect me if share prices fall?

Tommy Lumby
BBC business data journalist
It’s clear to see the full extent of how Trump’s tariffs have buffeted the FTSE 100, which tracks share prices for the UK’s 100 largest companies.
The market opened lower on 3 April after news of the tariffs emerged overnight. That was followed by the largest one-day fall in the share index since March 2020.
Share prices have recovered slightly on average since the FTSE opened even lower on Monday morning, although a spike caused by a rumoured pause in tariffs fell back again after being denied by the White House.
Ben Hatton
Live reporter
It’s early morning in the US and lunchtime in the UK, here’s a recap of what you need to know.
Stock markets
In Europe and Asia stock markets have made gains – a break from the downturn in share prices over the last few days.
As of around 12:30 UK time, the FTSE 100 was up more than 2% – albeit that is still about 9% lower than when it opened last Wednesday. And in Japan, the Nikkei 225 index has risen about 6% in today’s trading.
Early indications suggest the US stock market could open higher when it begins at 09:30 US Eastern Time (14:30 BST).
China’s threat of retaliatory tariffs
Yesterday, the US President issued an ultimatum to China: remove the 34% tariff it has threatened in response to Trump’s earlier tariffs, or face a further 50% tariff.
If Trump carries out his threat, it would see a large swathe of Chinese imports into the US facing a 104% tariff.
China has said today that it does not want a trade war but it will “fight to the end” if the US persists. US Treasury Secretary Scott Bessent, speaking to CNBC this morning, says China has made a “big mistake”.
‘Nothing is off the table’
In the UK, Chancellor Rachel Reeves says global tariffs will have “huge implications” but the head of the Bank of England reassures her that “markets are functioning effectively and that our banking system is resilient”.
Speaking in the Commons Reeves says pursuing a deal with the US remains the priority, but “nothing is off the table”. She announced she will meet the US trade secretary “shortly”.
We’ll continue to provide updates and analysis throughout the day – stick with us.
More now from US Trade Secretary Scott Bessent who tells CNBC the White House has a “substantial” call list of countries to speak to about tariffs, and last night it decided who was a priority to get in touch with to possibly strike a deal.
Chancellor Rachel Reeves has just told the Commons that she’ll be talking to Bessent “shortly”.
Bessent reckons that Trump has “maximum negotiating leverage right here, right now”.
“I think it would be a mistake for anyone to think otherwise,” he added.

Page 9

Image source, Getty Images
US Treasury Secretary Scott Bessent is doing the rounds on American morning shows and tells CNBC that China has made a “big mistake” and is playing “a losing hand” after Beijing announced retaliatory 34% tariffs against Washington.
Last night, Donald Trump threatened to impose a further 50% levy on China – taking total US tariffs on some goods to 104% if it didn’t back down.
China’s response? It warned the US that it intended to “fight to the end”.
Image source, Getty Images
Trading on the US stock market opens at 09:30 US eastern time, which is 14:30 BST.
An early indication as to how trading will begin can be seen on what is known as the “futures market”. As things stand, these suggest the tentative recovery in stocks will continue.
According to the futures market, both the S&P 500 index and the Dow Jones Industrial Average are set to open up by between 1% and 2%.
However, it’s worth noting these estimates can be volatile, so we could see quite a change before the markets open officially later today.
As we’ve just reported, Chancellor Rachel Reeves will be meeting with the US Treasury Secretary Scott Bessent “shortly”.
She also confirmed she is speaking with EU counterparts and will hold talks with the Indian government tomorrow in efforts to secure a trade deal with India.
While the UK tries to secure a better deal with the US, government officials are pressing ahead with deals to secure better mutual access to countries even harder hit by the new tariffs, who may be more incentivised to strike a deal.
The BBC understands that India – which was hit by a 26% tariff – is a particular target of these discussions.
Image source, UK Parliament
Speaking in the Commons, Reeves says “nothing is off the table” in terms of discussions with the US over tariff measures.
Addressing MPs, she says: “This government is clear-eyed that our response to global change cannot be to watch and wait, but instead to act decisively, to take the right decisions that are in our national interest.”
She adds that “a trade war is in nobody’s interests, it is why we must remain pragmatic, cool-headed and pursue the best deal with the United States that is in our national interest. This remains our priority.”
“This remains our priority, and that was part of the discussion that I had with US Treasury Secretary Scott Bessent last week, but we have been clear, nothing is off the table.”
Shadow chancellor Mel Stride, speaking in the Commons, asks Reeves what areas beyond tariffs are being discussed as part of negotiations with the US.
Reeves says while the government is discussing a range of different topics with the US, she clarifies that the focus is on reducing tariff and non-tariff barriers to trade, with a particular focus on sectors that are subject to higher tariffs, such as cars.
“Although 10% tariffs are lower than many countries around the world, and we welcome that, the additional tariffs on cars, steel, and potentially on life sciences pose a real challenge to our country because those are some of our biggest export markets,” she says.
UK Chancellor Rachel Reeves, who is now speaking in Parliament, has told MPs that she will meet US Treasury Secretary Scott Bessent “shortly”.
“The United States’ decision to impose tariffs has had and will continue to have huge implications for the world economy,” she says.
“This morning I spoke to the governor of the Bank of England, who has confirmed that markets are functioning effectively and that our banking system is resilient.”
You can follow the latest from the House of Commons in our stream at the top of the page – just click watch live.
Image source, Getty Images
Donald Trump’s higher tariffs on about 60 countries he has deemed the “worst offenders” are due to take effect tomorrow.
Before then, there are plenty of planned events – and no doubt off the cuff remarks – to come today on the tariffs plan and their impact on the global economy:
14:30 BST: US stock market opens.
15:00: US trade representative Jamieson Greer testifies before the Senate for a committee hearing on Trump’s trade policy.
16:30: European stock markets close
18:00: White House press secretary Karoline Leavitt holds a televised briefing from the White House.
20:00: Trump signs executive order titled “Unleashing American Energy”.
21:00: US markets close.
23:45: US president to make speech at a National Republican Congressional Committee (NRCC) dinner.
Image source, Getty Images
The pound has seen a slight rise against the dollar on Tuesday, up 0.2% to $1.2744, reversing some of the falls of the previous two days.
While the main attention has been on share price movements, the currency markets have also seen big swings over the past few days.
The pound jumped to around $1.32 on Thursday last week in the immediate aftermath of the “Liberation Day” tariff announcements. However, it steadily lost ground against the US currency in the following two trading days.
However, the dollar has been under pressure, and the dollar index, which measures it against six rival currencies, is down by about 0.7% since the tariffs announcement.
Usually the dollar is seen as a safer asset to hold in times of uncertainty, but now markets are worried about what the impact of the tariffs will be on the US economy.
Graham Fraser
Technology reporter
A deal over the future of TikTok may have been one of the first casualties of this new, more intense phase of the US-China trade war.
The US has passed a law which says the hugely popular video sharing app has to either sell its US operation or be banned. The deadline was last Saturday.
It seems a deal was nearly finalised on Wednesday last week but fell apart after Trump, on the same day, announced sweeping global tariffs – including on China.
Representatives of ByteDance, TikTok’s Chinese owners, contacted the White House to inform them China would no longer approve the deal unless negotiations on the tariffs could take place, a source familiar with the deal told CBS News, the BBC’s US partner.
The deal was off – and President Trump extended the deadline for a deal by 75 days.
What could happen next? Well, if a week is a long time in politics, then 10 weeks is an absolute age.
With Washington and Beijing exchanging more threats and defiant rhetoric, it may be that no agreement over TikTok’s future will prove to be the one of the first real world consequences of these new tariffs.
Nick Edser
Business reporter
Image source, Getty Images
Time for a quick recap of how stocks in Europe are doing, and so far the markets have hung on to their early gains.

The UK’s FTSE 100 index is up 1.9%
Germany’s Dax index has risen 1.5%
And France’s Cac 40 is 1.3% higher

Russ Mould, investment director at AJ Bell, says the gains, coupled with rises in Asia and a better end to the day in the US on Monday, suggest “investors are slowly regaining confidence”.
This might be in the belief that “an actual breakthrough on tariffs – either a temporary pause or positive negotiations – could unleash the mother of all rebound rallies”.
However, it’s “dangerous to think a massive rally will definitely happen,” he adds.
“Markets could stay fragile for days and weeks to come. It would only take a new sign of aggression from Trump or a trading partner fighting back hard to cause upset again,” he says.
The chief executive of a steel company in the US tells the BBC World Service she is “very grateful” for Trump’s 25% tariffs on imported steel.
Hollie Noveletsky, CEO of Novel Iron Works, tells Newsday a “significant influx” of foreign steel “dumped below prices” has “distorted” the market.
She says companies like hers in the US pay $30 plus an hour for a welder, but she says in Mexico they are paying $1.75.
“You can’t compete with that,” she says, adding many companies in her industry have gone out of business.
The first Trump administration also brought in tariffs on steel, but she says they “found very quickly that foreign countries knew how to circumvent” those.
Image source, Getty Images
Image caption,
On Monday, Hong Kong’s major stock market was shocked by a steep drop of 13.2%
China and Hong Kong stocks recovered a bit of ground on Tuesday, with China’s blue-chip CSI 300 climbing 1.7% and the Shanghai Composite Index regaining 1.6% at close.
Both fell by more than 7% on Monday.
Hong Kong’s Hang Seng Index closed on Tuesday, up 1.5% following Monday’s sharp drop of 13.2%, it’s steepest drop since the financial crisis of 1997.
Stocks in Indonesia were down nearly 8% at close.
The fall came amidst US president Donald Trump’s implementation of significant global tariffs, with threats of further reciprocal tariffs set to be imposed on Wednesday.
Image source, Getty Images
We’re just getting details of a phone call held between EU chief Ursula von der Leyen and Chinese Premier Li Qiang today.
According to a read-out published by von der Leyen’s office, the European Commission president “stressed the responsibility of Europe and China… to support a strong reformed trading system, free, fair and founded on a level playing field”.
She also called for a “negotiated resolution” and emphasised the “need to avoid further escalation”, the statement says.
As a reminder, China has promised countermeasures against Trump’s tariffs, with the US president in turn threatening additional 50% tariffs on top of the taxes already announced if Beijing does not walk back.
Yesterday, von der Leyen said the EU had offered “zero-for-zero” tariffs for industrial goods it exports to the US, adding that the EU was “always ready for a good deal”.
Image source, Getty Images
Image caption,
Indonesia plans to buy some products from the US as part of its negotiation efforts
We’ve reported a lot on how China is reacting to Trump’s trade taxes with countermeasures of its own.
But how are other nations across Asia taking it all?
Indonesia, with tariffs at 32%, says it plans to buy petrol, natural gas and soybeans from the US as part of negotiation efforts. The government says it may look to other nations – Vietnam, Thailand, Bangladesh and China – to replace any US exports.
Sri Lanka, with some of the highest rates of tariffs at 44%, says its president has written to Trump and they are due to have a meeting later on Tuesday.
South Korea, which faces 26% tariffs, says it will monitor how other countries respond to their new levies before preparing its negotiation strategy, as the government prepares support measures.
Singapore’s prime minister says 10% tariffs on the city-state from the US are “not actions one does to a friend”. Lawrence Wong told parliament under a free trade deal with the US, Singapore imposes zero tariffs on American goods and also runs a trade deficit with Washington.
Taiwan, on Trump’s “worst offender” list with a tariff rate of 32%, says it is open to negotiations with the US at any time.
Image source, Gett
Stock markets in Europe opened this morning slightly higher after the falls experienced in recent days. If you are just joining us, here is a quick recap:

The FTSE 100 has opened up 1%, with Cac 40 in France rising 1.8% and the Dax in Germany up 1.3%
In Japan, the Nikkei 225 index traded up 6%, with markets in South Korea and Australia also edging up
US President Donald Trump has told China it must reverse a planned 34% tariff on US goods today or face a further 50% tariff – taking Beijing’s total tariff rate on certain goods to 104%
Beijing accused the Trump administration of blackmail in a statement, saying China will “fight to the end”
The UK’s Health Secretary Wes Streeting says the US tariff decisions are “harmful to British interests” and claims the government – which has not yet announced retaliatory measures – is showing “level-headed leadership”
US Republican Congressman Pete Sessions tells the BBC people in his state of Texas don’t like additional taxes like tariffs, but says “many people believe it is a negotiating tactic” and that he hopes Trump will make deals
Our North America editor, Anthony Zurcher, writes that Trump appears to be locked in a high-stakes game of chicken with other countries
It comes as higher custom tariffs on roughly 60 countries, dubbed the “worst offenders”, are due to come into effect tomorrow

The US tariffs on China could cause a problem in the long run to UK firms who currently import goods from aboard, according to the boss of Buy It Direct Group, an online discounter which sources a significant share of its products from China.
Chief executive Nick Glynne tells the BBC’s Today programme that if Chinese firms stop or reduce exports to the US, “the big long-term threat is to accelerate what’s already been happening in the UK, which is Chinese manufacturers selling over the head of importers… and selling directly to UK consumers”.
“At the moment there are three million commercial parcels a week that go directly to UK consumers from China,” he says.
However, Glynne says Chinese firms have much cheaper shipping rates, and by posting direct can bypass duty, packaging tax and other compliance costs.
He argues the UK’s tax body HMRC “needs to create a level playing field between UK importers and Chinese exporters”.
Sam Nunberg, who worked as an adviser to President Trump during his 2016 presidential election campaign, has told the BBC he believes tariffs are here to stay but will not consist of the “humongous” rates currently being imposed.
“I believe that the president has put out these humongous tariff rates as a starting negotiating point,” he tells BBC Radio 4’s Today programme.
“This is a starting point, this is not where this is going to end, but the president is not going to completely reverse course.
“There’s going to be a new tariff regime within the US and on the international trade market – the issue is what that looks like.”
Nunberg adds that the policy will play out well among Trump’s core supporters, who feel that the American manufacturing heartland has been “hollowed out” by global trade but anticipates problems arising if and when reciprocal tariffs come in and there is a recession in the US.
Nick Edser
Business reporter
Image source, Getty Images
Banks and energy firms are among the shares doing well on the UK market this morning.
Oil giants BP, up 3%, and Shell, up 2%, are some of the biggest gainers in the FTSE 100, helped by a small rebound in the price of oil.
Among the major UK banks, Lloyds and Barclays are both up by about 2%.
The biggest riser in the FTSE 100 though is IAG Group – the airline group that includes British Airways and Iberia. Its shares are up 3.5%.
At the same point yesterday, every single company in the FTSE 100 index had fallen. So far on Tuesday, it’s a much more balanced picture.
Health Secretary Wes Streeting has defended the government’s response to President Trump’s tariffs on UK goods.
Streeting tells the Today programme on BBC Radio 4 that measures announced yesterday, including on the relaxation of electric vehicle sales targets, have been brought forward by the government as a direct result of the tariffs.
He says the government has “made no bones about the fact we disagree with the decisions taken by the Trump administration” as they are “harmful to British interests”.
“What the prime minister has been doing – contrary to those who preferred he would take to Twitter [now X] and pick up placards – is showing the cool, calm, level-headed leadership required both to get the best possible trading relationship with the US as well as with our other trading partners,” he says.
As a reminder, goods going to the US from the UK now have a baseline 10% tax applied to them, with higher rates on cars, aluminium, and steel.
Nick Edser
Business reporter
Well the dust has settled after the first few minutes of trade and the major European markets are still trading higher.
The FTSE 100 is up 1.1%, Germany’s Dax is 0.6% higher and the Cac 40 has risen 1.3%.
However, while analysts have welcomed the rises, they warn that sentiment remains fragile.
“This should hardly be seen as the end of the trouble, especially with President Trump showing no signs of easing his stance on perceived trade imbalances, having doubled down on China,” says Matt Britzman, senior equity analyst at Hargreaves Lansdown.
However, signs of possible trade talks between the US and Japan offer “a glimmer of hope”, he says.
“The sooner deals are reached; the quicker companies and investors can gain some clarity on the lay of the land.”

Page 10

Henry Wang, founder of the think tank Center for China and Globalization, has been speaking to the BBC’s Today programme on Radio 4 this morning.
He says the US should invite China to the negotiating table so it can explain why it has launched what he called an “unjustified” and “immoral” trade war.
“They should invite China, because they launched this trade war and they should give China an explanation for that,” he says.
Wang says Trump’s policy overlooks many of the US’s strengths, including on service trade and harvesting global talents, before adding that the US is not in a position to complain about losing manufacturing jobs to other nations because it “abandoned” the industry.
Trading has just restarted in Europe and all the main stock markets are showing a slight rebound from the previous falls.
In the UK, the FTSE 100 has opened up 1%.
In France, the Cac 40 rose 1.8%.
Germany’s Dax is up 1.3%.
Image source, Getty Images
Yesterday, Europe’s biggest stock markets all opened – and closed – significantly down with some falling up to 10% on the day.
Ahead of the UK’s stock market opening at 08:00 BST, here is a recap of what happened across Europe on Monday:
The FTSE 100 is the UK’s biggest stock market index, and is made up of the largest firms listed in the UK. On Monday it opened at 2.4% down but then slumped to -4.4% at close.
Germany’s Dax opened trading on the Frankfurt Stock Exchange with a stark drop of nearly 10%. However, the index managed to regain some ground, eventually closing at 4.1% down.
The French Cac40, a stock market index made up of the 40 most prominent listed companies in France,opened at around 7% down. It did manage to recover some of those losses, closing at 4.8% down.
The UK stock market will be opening in a few minutes, stay with us.
Image source, Getty Images
We’ve just been hearing from Republican House representative for Texas Pete Sessions, who tells BBC Radio 4’s Today programme Trump’s policy on tariffs has “ignited many capitalists” who are against it.
He says many ordinary Texans are also “concerned” but he believes it is a negotiating tactic from the Trump administration.
“All Texans believe that a tariff is a tax and it’s not in America’s best interest, nor people in the free world, to pay that extra money,” he says.
“I think many people believe it is a negotiating tactic, certainly the administration has signalled he [Trump] is willing to negotiate with other countries and it is my hope that he continues to do that and we find an end to this that will be mutually good not just for Texas but for everyone.”
He says Trump must look at the reaction in the markets and listen to the concerns being raised, saying he is hopeful this will play out within three to four weeks.
But he adds: “Once a play like this is made, getting the toothpaste back in the tube is hard.”
Henry Zeffman
Chief political correspondent
As the trade war between China and the US intensifies, on the other side of the world the UK continues to pursue its own strategy of seeking a bilateral deal with President Trump.
For weeks in the run-up to the tariffs being imposed by the US, the UK sought to negotiate an economic agreement with Washington which would, among other things, mean the tariffs being reduced.
Yet in the days before Trump’s big announcement last week it became clear that the president was set on imposing blanket global tariffs.
The government still hopes that deal could be signed.
In fact, those close to the negotiation say it is essentially there, focusing on technology co-operation but covering various other parts of the economy too. What they admit remains something of a mystery is when, or whether, President Trump might actually sign it.
The longer he does not, the more questions you will hear here in the UK about the government’s approach.
Anthony Zurcher
North America correspondent, Washington DC
Image source, Getty Images
A day before Donald Trump’s “reciprocal” tariffs are scheduled to kick in, the US president appears locked in a high-stakes game of chicken, with the world’s economy hanging in the balance.
So if this is about the start of broader systemic change – what is the desired end goal worth potentially tanking the global economy?
One theory is that Trump has a plan with several of his top advisers – the “Mar-a-Lago accord”, it is called – with the ultimate goal of compelling America’s trading partners to weaken the US dollar on the international currency exchange.
Such a move would make American exports more affordable to foreign markets and diminish the value of China’s large reserves of US currency.
That’s just one of the possible explanations for the current stock market mayhem that Trump has purposefully instigated – one that many other prominent economists warn is risky. It is far from the only one.
Is it all a negotiating tactic, or is he playing a longer game aimed at permanently restructuring the global economy and America’s place in it?
Image source, Getty Images
On Monday, US President Donald Trump threatened additional tariffs on Chinese goods.
Writing on Truth Social, external, he said that unless China withdrew the 34% retaliatory tariff announced by Beijing last week, he would impose an additional 50% tariff on Wednesday.
Trump had already imposed a 20% tariff on China before announcing a further 34% rate last week. An additional 50% would take the total tariff rate on China to 104%.
He also opened the door for negotiations with other countries, which included meeting Israeli Prime Minister Benjamin Netanyahu in Washington yesterday, but said he was not considering pausing new tariffs.
Asked directly about a potential pause, he told reporters in the Oval Office: “We’re not looking at that. We have many, many countries that are coming to negotiate deals with us, and there are going to be fair deals.”
After a more positive performance from Asian markets, there are indications that European shares will also see a rebound when trading starts at 08:00 BST this morning.
Rachel Winter, a partner and investment manager at Killik & Co, tells the BBC’s Today programme that “it’s looking to be very much a better day”.
The futures market – which gives an indication of how markets will perform – suggests the UK’s FTSE 100 share index will open about 2% higher.
However, the futures market can be volatile, so can change quite a bit before the market opens officially.
Hong Kong’s Chief Executive John Lee says President Trump’s “reckless imposition” of tariffs has far-reaching effects on global trade.
Lee says the levies “will disrupt the world economic and trade order, bring great risks and uncertainties to the world”.
He adds that Hong Kong will look to deepen trade with South East Asia and the Middle East, and sell more to mainland China in response to tariffs.
Mariko Oi
Asia business correspondent
Image source, Reuters
After three days of a sharp sell-off, Japan’s Nikkei 225 index opened 6% higher today.
Hong Kong’s Hang Seng was up about 2% – after plunging yesterday by more than 13%, its biggest fall in decades.
The markets in South Korea and Australia have also edged up – while in Taiwan and Singapore there have been more losses.
The key index in mainland China, the Shanghai Composite, was broadly flat in morning trading.
One trader described what was happening across Asia as a “natural market bounce following Monday’s calamities”.
Chris Mason
Political editor
Image source, Getty Images
As if the economic picture in the UK wasn’t shaky already, it has now got shakier still.
The cost of living is continuing to bite for many and people will worry about the prospect of recession.
It is the last thing the government could do with. It is the last thing millions of families could do with.
New polling for More In Common suggests two-thirds of people in the UK are worried about America’s tariffs, with just over half fearing it will make cost-of-living pressures even greater.
And nearly twice as many people in the UK would support the government retaliating with its own tariffs on America as those who oppose the idea.
For now, the prime minister and senior ministers are doing what plenty of governments around the world are doing: scrambling to work out how to respond and hitting the phones to ask each other just that.
Stephen McDonell
China correspondent, Beijing
Image source, Getty Images
Beijing has indicated that it will hold firm in the face of renewed threats from Donald Trump.
China’s Commerce Ministry said that any more tariffs from the US would trigger extra “countermeasures” targeting American goods.
In a written statement it accused the Trump administration of blackmail and said that “if the US insists on this way, China will fight it to the end”.
It also ridiculed Donald Trump’s claim that his tariffs are “reciprocal” saying that they were “groundless” and “a typical unilateral bullying practice”.
It seems hard to believe that Donald Trump would have really expected China to reverse last week’s “countermeasures” in the face of his promised next round of retaliation.
Apart from losing face, if the Chinese government is describing Donald Trump as a bully, it is hardly going to back down to this person.
By taking a firm stand against the Trump-instigated global trade chaos, China may also hope to attract not only international political support but also extra trade volumes from new partners, which might make up for some of the loss of sales into America.
But the Communist Party doesn’t really need a trade war now. It comes at a time of high economic pressures at home.
Policymakers had already been struggling to increase increase domestic consumption, with a sluggish economy reeling from years of a major property crisis and persistent youth unemployment. Now it is facing a potential collapse in trade with the world’s other superpower.
Still, the Chinese Communist Party has sent a confident message to the Chinese population today, in the form of an editorial in the mouthpiece People’s Daily newspaper.
“China has the courage and confidence to deal with the impact… it is fully capable of meeting these challenges,” it said.
Image source, Getty Images
Good morning to our readers in Europe and the UK. If you’re just joining us, here are the latest developments:

US President Donald Trump has threatened China with an extra 50% tariff on goods imported into the America if Beijing does not withdraw its plans to retaliate
China’s commerce ministry has said it will never accept the “blackmail nature” of the US and vowed to fight against tariffs “to the end”.
Several Chinese state-owned firms have pledged to support financial markets as trade tensions with the US escalate. China’s financial regulator also plans to increase the proportion of insurance funds investing in the stock market
Analysts have said China is unlikely to back down as it will not want to “appear weak”, even though the proposed tariffs could cripple the Chinese exports sector
Most Asian markets opened higher on Tuesday, recouping huge losses seen a day earlier, although Taiwan saw a further fall

Peter Hoskins
Business reporter, Singapore
Shortly after coming back to the White House Donald Trump returned to one of his favourite themes – lashing out at China over trade. But his Chinese counterpart Xi Jinping is showing no signs of backing down.
In February, Trump imposed a new 10% tariff on all goods from China.
Beijing immediately hit back with a number of countermeasures, including duties on US coal, liquefied natural gas and agricultural machinery.
The following month, Trump doubled the tariff on Chinese goods to 20%.
Again, China retaliated with more tariffs of up to 15% on key US agricultural products and tightened controls on American firms operating in the country.
Last week, on the US president’s so-called Liberation Day, he unveiled plans to raise the import tax on Chinese goods to 54%, although some items, like pharmaceuticals and computer chips, were exempted.
Yet again, Beijing responded with new measures, including additional export controls on rare earth minerals and suspended imports of more farm goods from some US firms. It also filed a lawsuit with the World Trade Organization, added 27 American firms to lists of companies facing trade restrictions and started an anti-monopoly investigation into DuPont China Group Co.
On Monday, Trump threatened a massive hike to tariffs, which if actually imposed would mean almost all Chinese imports will be subject to a 104% tariff.
China has said it will “fight to the end”.
All of which suggest that we probably won’t see an end to this trade war any time soon.
Bangladesh’s interim government has formally asked the US to pause its tariff plans for three months.
This will allow the South Asian country to “smoothly implement its initiative to substantially increase US exports to Bangladesh,” the office of interim leader Muhammad Yunus said.
The office added that it has already agreed to buy more US goods including energy, cotton and wheat.
Bangladesh is the third largest supplier of clothing to the US, after China and Vietnam. It faces a 37% levy on its exports later this week.
Image source, Getty Images
Image caption,
Bangladesh’s economy heavily relies on the clothing industry
By Gerry Georgieva
US President Donald Trump has claimed several times that the United States is running a $1tn trade deficit with China.
But we can’t find any evidence for this.
The US does run a trade deficit with China, meaning that it imports more in goods from that country than it exports to it. But the figure was just over $295bn for 2024, external.
Globally, in 2024, China exported nearly $1tn more goods, external than it imported – so it’s possible that Trump may have been mistakenly referring to this figure.
Vietnam’s Prime Minister Pham Minh Chinh says the country will buy more goods from the US, including products used for security and defence.
He added that it will also seek for faster deliveries of America-made planes.
Vietnam is set to be one of the hardest hit by Trump tariffs – it faces a rate of 46%.
It has a large trade deficit with the US and has been a beneficiary of firms moving factories out of China to avoid measures announced during his first term in office.
Read more on how Pham is also trying to take a diplomatic approach with the US – including golfing with Trump.
Image source, Getty Images
Image caption,
Vietnam’s Prime Minister Pham Minh Chinh
Thailand’s stock exchange, which was closed yesterday for a national holiday, has seen stocks fall more than 4% when it opened this morning.
The stock exchange has banned short-selling this week in anticipation of the chaos that hit global markets in the wake of Trump’s tariff announcements. It has also lowered the ceiling and floor limit on stocks from 30% to 15%.
Thailand has been hit by a 36% tariff, among the highest in the region.
Thai Prime Minister Paetongtarn Shinawatra has said that she was seeking negotiations with the US. Authorities have also pledged to increase imports of energy, aircraft, and agricultural products from the US.
Annabelle Liang
Business reporter, Singapore
Image source, Getty Images
The numbers are eye-watering – with just over 24 hours left until tariffs are due to be imposed.
China was already facing a 54% levy on its imports to the US. Trump has threatened to almost double this, in response to Beijing’s plan to retaliate.
The war of words is also heating up. But China is unlikely to back down on both fronts, even though tariffs could cripple its exports sector, according to analysts.
“I believe that China means it when it says it will fight to the end. It will be tit-for-tat if the US really raises the tariffs again, China will match it,” said Dan Wang from the Eurasia Group consultancy.
This is despite the fact that proposed tariffs will “wipe out the entire profit margin for [the Chinese] export sector”.
Alfredo Montufar-Helu from The Conference Board think tank believes it would be “a mistake to think that China will back off” as Beijing will not want to “appear weak”.
“Unfortunately, we’ve now reached an impasse that will likely lead to long term economic pain,” Mr Montufar-Helu said.
Ottilie Mitchell
Reporting from Sydney, Australia
Image source, Getty Images
The US Commerce Secretary has defended the country’s decision to impose tariffs on a group of uninhabited islands, which are populated only by penguins and seals.
The imposition of tariffs on the Heard and McDonald islands was meant to close “ridiculous loopholes” and would prevent other countries from shipping through the islands to reach the US, Howard Lutnick told the BBC’s US partner CBS.
Authorities in Australia reacted with surprise last week when they found out about the tariffs on the island, which sits 4,000km (2,485 mi) from Australia.
Its trade minister Don Farrell told the Australian Broadcasting Corporation the tariffs were “clearly a mistake” and indicated a “rushed process”.

Read more: US defends tariffs on remote island of penguins and seals

Page 11

Indonesian shares have plunged by more 9% as markets reopened after an extended holiday.
The slide triggered a 30-minute halt to trading.
The country’s currency, the rupiah, also fell to a record low against the US dollar as traders reacted to the global market turmoil triggered by Trump’s tariffs, which included a plan for 32% tariff on Indonesian products.
Indonesian markets reopened on Tuesday for the first time since 27 March, and are catching up with global market moves.
Hong Kong’s leader John Lee has said the city will look to deepen trade with South East Asia and the Middle East in response to US tariffs.
He also urged businesses to increase sales to mainland China.
Lee, in a speech on Tuesday, called tariffs a “reckless” act and “ruthless behaviour” by the Trump administration.
His comments come as the benchmark Hang Seng index is trading around 2% higher as it looks to recoup huge losses seen a day earlier.
Image source, Getty Images
Image caption,
Hong Kong leader John Lee
Japan has nominated Economy Minister Ryosei Akazawa to head trade negotiations with the US.
Trump and Japan’s Prime Minister Shigeru Ishiba had agreed to start bilateral talks during a phone conversation on Monday. Trump has put Treasury Secretary Scott Bessent and Trade Representative Jamieson Greer in charge of these negotiations.
To recap, Trump has imposed a 25% levy on auto imports from Japan and a so-called reciprocal tariff of 24% on other Japanese goods.
Let’s take a look at how major Asia-Pacific stock markets are trading this morning.
In short, most of them are up after yesterday’s plunges, with the notable exceptions of mainland China, Taiwan, and Singapore.

Shanghai Composite (China) -0.2%
Nikkei 225 (Japan) +6.6%
Hang Seng (Hong Kong) +1.7%
Kospi (South Korea) +1.5%
ASX 200 (Australia) +1.5%
STI (Singapore) -2.2%
TWI (Taiwan) -3.8%

Image source, Getty
As China took on Trump’s latest tariffs threats against it, the ruling Communist Party’s propaganda machine went into full swing.
China’s counter measures are “justified, legal, powerful and restrained”, while the US tariffs show that it is pursing “American hegemony”, Beijing’s state newspaper People’s Daily said in a commentary published today.
In the article, titled “Pressure and threats are definitely not the right way to deal with China”, the paper criticised the Trump administration for “abusing the weapon of tariffs”, and defended China as a “defender of multilateralism”.
It also questioned the effectiveness of Trump’s trade war. “It’s been more than a year or two since the US unilaterally provoked a trade war against China. And what’s the result?”
“China’s foreign trade has shown strong resilience under pressure, and the Chinese economy has always maintained development and progress. In contrast, the United States has not only failed to achieve the goals of reducing trade deficits and promoting the return of manufacturing, but has also caused losses to its own companies and consumers.”
The Shanghai Composite is broadly flat in morning trading, currently up by 0.22%.
The benchmark stock index closed 7.3% lower on Monday.
Like Hong Kong and Taiwan, traders there were playing catch up after being closed for a public holiday on Friday.
Four Chinese state-owned firms have said they will help to support financial markets as trade tensions with the US escalate.
Central Huijin Investment, China Chengtong Holdings Group, China Guoxin, and China Electronics Technology Group made the announcements before local stock markets opened on Tuesday.
They pledged to take measures including buying billions of dollars in China-listed shares and exchange-traded funds.
China’s financial regulator also said it plans to increase the proportion of insurance funds investing in the stock market.
Image source, Getty Images
Image source, Reuters
When did this start? After Trump announced a large increase in US tariffs last Wednesday
And a tariff is… A tax paid to the government to bring goods into the country. Most countries have some tariffs. The US’s were relatively low, but Trump has increased them significantly
Why did he do this? Trump’s been saying he wants to do this for decades. The US buys more physical goods than it sells, and he claims this is unfair and threatens security. Tariffs, he says, will bring more jobs to the US
But most experts disagree… Most economists argue trade barriers such as tariffs reduce growth, and that such a quick and dramatic shift in tariff policy will make trade and investment harder
And how do other countries feel? Not great. Many have threatened to retaliate by increasing tariffs on US goods entering their countries
This affects stock markets because… Companies are facing higher costs to move their products across the world. There’s also great uncertainty – it’s not clear what Trump, or the countries he’s putting tariffs on, will do next, making investment decisions more challenging
And stocks are what exactly? To own a stock is to own a share of a company – the more you have, the more of the company you own. A stock market is where people buy and sell these shares. So when a stock market index falls, it means the value of those companies have dropped
Hong Kong’s Hang Seng is trading around 2.7% higher this morning.
On Monday, the benchmark index plunged by more than 13%, in its biggest fall in decades.
The losses were worsened because traders were having to catch up on Friday’s slides on the global financial market as the Hong Kong Stock Exchange was closed for a public holiday.
Natalie Sherman
Business reporter, New York
Image source, Getty Images
Image caption,
Cargo ships load and unload containers for foreign trade at Qingdao Port in Shandong province, China
When President Trump entered the White House in January, about two thirds of goods sent from China to the US were already facing tariffs, as a result of actions he took during his first term.
His moves then hit items like solar panels, washing machines and other kinds of machinery. But many key consumer products, like iPhones, toys, and clothing, had been spared.
That has not been true this time around.
Starting in February, Trump put in place a new, 10% levy on all goods from the country, which he increased to 20% in March. It has left businesses like the toymakers I spoke to in March reeling.
And that was before last week, when he said he would raise the tariff to another 34 percentage points.
Some key strategic items, such as pharmaceuticals, semiconductors and lumber, were spared from the tariffs that action.
But the announcement means the vast majority of imports from China – which accounted for more than $400bn in trade last year, making it America’s top source of imports after the European Union and Mexico – are facing a tariff rate of at least 54% – which Trump has now threatened to raise again by another 50 percentage points.
Stock markets in Hong Kong and mainland China have just opened, with shares making gains after yesterday’s big falls.
We’re waiting for stock markets in Hong Kong and mainland China to open after yesterday’s big share price falls in the region.
It comes as some major Asia-Pacific stock indexes have made gains this morning.
Japan’s Nikkei 225 is up by more than 5%, the Kospi in South Korea is around 1.3% higher, and Australia’s ASX 200 has edged up by about 0.8%.
But Taiwan’s benchmark TAIEX index is more than 5% lower, adding to the an almost 10% plunge on Monday.
China’s commerce ministry has said it will never accept the “blackmail nature” of the US as it vowed to fight against tariffs “to the end”.
The ministry called President Trump’s threat of an additional 50% levy on China-made goods “a mistake on top of a mistake”.
It demanded that all plans for tariffs be dropped and for US-China differences to be resolved through dialogue.
Image source, Getty Images
Taiwan’s benchmark TAIEX stock index is around 4% lower in early trading after falling by almost 10% yesterday.
It comes despite other stock markets in the region, including Japan, South Korea and Australia making gains.
On Monday, shares from Shanghai to Tokyo and Sydney to Hong Kong plunged by levels not seen in decades, as global markets continued to reel from US President Donald Trump’s tariffs.
We’re waiting for the stock market in Taiwan to open in a few minutes, after yesterday’s almost 10% plunge on its benchmark index.
That slump was worsened by traders having to play catch up on the slide in global share prices on Friday as the market was closed for a public holiday.
One of Trump’s former economic advisers is speaking out in support of tariffs, denying expert predictions of an incoming recession and saying a trade war with China is “not necessarily bad”.
Tomas Philipson, who served as the acting chairman of the Council of Economic Advisers during the first Trump administration, firmly stood by the president’s tariffs in an interview with BBC News, saying talks of a serious economic downturn have been exaggerated.
“Tariffs are not inflationary,” he said.
JP Morgan earlier raised the probability of a global recession to 40%, citing Trump’s tariffs as the reason.
Philipson also took aim at China, calling them a “military adversary”.
The trade war is good, he said, because currently the US is “subsidising the Chinese build-up of a military, of communism,” he said.
Annabelle Liang
Business reporter, Singapore
The few financial markets that have opened in the Asia Pacific region are trading higher.
Japan’s Nikkei is seeing the most gains at the moment of around 5%, while indices in South Korea and Australia are making smaller advances.
But they are still some way from recouping losses from Monday.
What is currently happening is “something of a natural market bounce following Monday’s calamities,” said Tim Waterer from the KCM Trade brokerage.
“US futures markets have been moving higher which has given a hint of optimism for Asian markets,” he added.
Vishnu Varathan from Mizuho Securities Singapore said investors are seeing “some scope for a rebalancing” after several “rather ugly” market sessions.”It’s just a case of waiting it out to determine which way [tariff threats] swing,” Varathan added.
The Nikkei 225 in Tokyo has added to today’s gains after plunging yesterday.
In morning trading, the benchmark stock index is now up by more than 5%.
Yesterday, it slumped by 7.8% as shares in major Japanese companies from carmakers to banks were sold off.
President Trump has threatened China with an additional tariff of 50% on its imports to the US.
This came as he called on Beijing to withdraw its plan to respond to US tariffs by putting a 34% levy on goods made in America.
Speaking at the White House on Monday, the US president said he was not considering a pause on new tariffs to allow for negotiations with other countries.

Page 12

Sakshi Venkatraman

Reporting from New York

Media caption,

Watch: Three things to know about Trump’s tariffs announcement

On April 2, US President Donald Trump unveiled a slew of aggressive tariffs on imports from nearly every country in the world, sending shockwaves through global markets.

He targeted all countries with a standard 10% tariff, but for some of America’s biggest trading partners, that number went much higher.

China was hit with a 54% tariff, for example (although this included some earlier tariffs Trump had ordered).

What followed was the worst week the global stock market has experienced since the Covid pandemic.

The three major US indexes slumped, falling more than 5%. Some Asian stocks are having their worst drop in decades.

World leaders are now scrambling to respond, with some now negotiating with Trump to lower their rates. Others, like China, are imposing their own retaliatory levies on the US.

Trump has continued to defend the tariffs, saying on Sunday, “sometimes you have to take medicine to fix something”.

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