Trump Tariffs Highlights: Dow, S&P sink after Trump’s tariffs on China spark global trade war

Tech giant Apple chartered cargo flights to ferry 600 tons of iPhones, or as many as 1.5 million, to the United States from India, after it stepped up production there in an effort to beat President Donald Trump's tariffs, sources told Reuters. The details of the push provide an insight into the US smartphone company's private strategy to navigate around the Trump tariffs and build up inventory of its popular iPhones in the United States, one of its biggest markets. Analysts have warned that US prices of iPhones could surge, given Apple's high reliance on imports from China, the main manufacturing hub of the devices, which is subject to Trump's highest tariff rate of 125%.

That figure is far in excess of the tariff of 26% on imports from India, but which is now on hold after Trump called a 90-day pause this week that excludes China. Apple "wanted to beat the tariff," said one of the sources familiar with the planning. The company lobbied Indian airport authorities to cut to six hours the time needed to clear customs at the Chennai airport in the southern state of Tamil Nadu, down from 30 hours, the source added. The so-called "green corridor" arrangement at the airport in the Indian manufacturing hub emulated a model Apple uses at some airports in China, the source said.

About six cargo jets with a capacity of 100 tons each have flown out since March, one of them this week just as new tariffs kicked in, the source and an Indian government official said. The packaged weight of an iPhone 14 and its charging cable come to about 350 grams (12.35 oz), Reuters measurements show, implying the total cargo of 600 tons comprised about 1.5 million iPhones, after accounting for some packaging weight. Apple and India's aviation ministry did not respond to a request for comment. All the sources sought anonymity as the strategy and discussions were private. Apple sells more than 220 million iPhones a year worldwide, with Counterpoint Research estimating a fifth of total iPhone imports to the United States now come from India, and the rest from China.

Trump consistently increased US tariffs on China, to stand at 125% by Wednesday, from 54% earlier. At the 54% tariff rate, the $1,599 cost of the top-end iPhone 16 Pro Max in the United States would have surged to $2,300, calculations based on projections by Rosenblatt Securities show.

(Reuters)

European Commission President Ursula von der Leyen on Thursday welcomed President Donald Trump’s decision to “temporarily halt” most US tariffs, calling it “an important step towards stabilizing the global economy,” but did not say whether the European Union would still move forward with its approved retaliatory measures. Trump announced a “90 day PAUSE” for countries that had not retaliated, with a new tariff rate of 10%. The EU’s previous rate was 20%, but it remained unclear how the 27-nation bloc would be impacted.

Von der Leyen emphasized that “clear, predictable conditions are essential for trade and supply chains to function.” While the EU had voted to approve retaliatory tariffs on $23 billion in goods—set to take effect in stages starting April 15—the commission “will now take the necessary time to assess this latest development, in close consultation with our member states and industry, before deciding on next steps,” spokesman Olof Gill said. Von der Leyen reiterated the EU’s commitment to “achieving frictionless and mutually beneficial trade” and said the bloc would keep “engaging with countries that account for 87% of global trade and share our commitment to a free and open exchange of goods, services, and ideas.”

(With inputs from AP)

China is not interested in a fight but will not fear if the United States continues its tariff threats, the Chinese foreign ministry said in reply to questions about the US tariffs on Thursday. "The US cause doesn't win the support of the people and will end in failure," ministry spokesperson Lin Jian said at a regular press conference. China will not sit back and let the legitimate rights and interests of the Chinese people be deprived, Lin said.

(Reuters)

Europe and the United States could reach a "win-win" trade deal which could be beneficial to both parties, Greek Prime Minister Kyriakos Mitsotakis said in an interview published late on Wednesday. In a stunning reversal, Trump said on Wednesday he would temporarily lower the hefty duties he had just imposed on dozens of countries while further ramping up pressure on China, sending global stocks rocketing higher. “On the European front there is a possibility of finding a win-win solution when it comes to trade, a solution which will be mutually beneficial," Mitsotakis told US news network Breitbart from his office in Athens.

The European Union on Wednesday agreed to launch its first countermeasures against US tariffs next week. But European Commission President Ursula von der Leyen on Thursday welcomed Trump's announcement of the pause. Mitsotakis said that there was "still room for negotiations" with the United States before Europe considered any major reciprocal response beyond what had been announced on Wednesday. "Europe and the European market is very important for the US and US is important for Europe and we need to work out a solution."

(Reuters)

Planned US tariffs could reduce Indonesia's potential growth by 0.3 to 0.5 percentage points, but a 90-day pause in implementing the levies allows time to discuss solutions, Indonesia's finance minister told Reuters on Thursday. Minister Sri Mulyani Indrawati said Indonesia welcomes the 90-day pause as it provided an opportunity to mitigate or avoid the downside risks from tariffs to economic growth. "The estimated current situation, before the pause, could reduce our potential growth by between 0.3% of GDP up to 0.5%," she said in an interview on the sidelines of the ASEAN finance ministers and central bank governors meeting in Malaysia.

Indonesia has set a 5.2% GDP growth target this year versus 5.03% achieved last year. President Prabowo Subianto, however, wants to jack up the growth to 8% by 2029. Indonesia's authorities have said the U.S. tariffs would have a limited impact on the economy, which relies more on the domestic market. The US was Indonesia's third-biggest export destination as of last year, receiving shipments worth $26.3 billion, according to Indonesian government data. Sri Mulyani said Indonesia would use the 90-day tariffs pause to come up with a framework of cooperation that was "mutually respected" by other countries.

"We have to continue to be very prudent... Expenditure should be made more efficient, well-targeted and effective in supporting growth on the monetary side." She said the recent pressure on the rupiah currency, which is at all-time lows, was temporary, adding the government remained focused on indicators such as corporate debt and government debt-to-GDP. The rupiah strengthened as much as 0.83% to 16,720 a dollar on Thursday as of 0512 GMT, according to LSEG data, after hitting an all time low for two days straight since the market reopened on Tuesday.

(Reuters)

Thai consumer confidence dropped for a second straight month in March to hit its lowest level in five months due to higher living costs, sluggish economic growth and concern over U.S. trade tariffs, a survey showed on Thursday. The consumer index of the University of the Thai Chamber of Commerce fell to 56.7 in March from 57.8 in February, the university said in a statement. "It's clear that the fallen confidence index was driven by the trade war, which may cause problems for Thai exports and tourism and slow economic recovery," university president Thanavath Phonvichai told a press conference.

Thailand is among the countries in Southeast Asian nations hardest hit by US President Donald Trump's measures, with a much bigger than expected 36% tariff. However, a 90-day pause on the US tariffs announced overnight will give officials more time to prepare a response. Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries, while further ramping up pressure on China.

Thanavath said if Thailand could negotiate to bring the tariffs down to 10%, the damage could be around 100 billion baht to 150 billion baht ($2.93 billion-$4.40 billion), lowering growth by 0.7 to 0.9 percentage points. When the 36% tariff was announced last week, Finance Minister Pichai Chunhavajira said it could cut growth in Southeast Asia's second-largest economy by 1 percentage point. The economy grew just 2.5% last year, lagging regional peers. Thailand has said it would increase imports from the United States and cut tariffs as it seeks to negotiate a better deal.

(Reuters)

The Japanese government on Thursday nominated Kazuyuki Masu, a former chief financial officer of trading house Mitsubishi Corp, to join the central bank's nine-member policy board. Masu would replace former Hitachi executive Toyoaki Nakamura, seen as among the most dovish members of the central bank's board. If formally approved by parliament, 66-year-old Masu would begin his five-year term on July 1, as Nakamura serves out his term a day before.

He will fill a post traditionally reserved for a business executive on the Bank of Japan board, which comprises academics, economists, career bureaucrats and senior officials from the finance and corporate sectors. Masu joined Mitsubishi in 1982 and mainly served finance and accounting positions at the trading house. He retired as CFO in 2022. He is currently a council member of the Japanese Institute of Certified Public Accountants.

The appointment comes as Trump's decision to impose sweeping tariffs worldwide, including on Japan, complicates the BOJ's plan to continue raising interest rates from still-low levels. The BOJ exited a radical stimulus programme in March last year and raised interest rates to 0.25% in July and to 0.5% in January on the view that Japan was on the cusp of sustainably achieving its 2% inflation target. Nakamura voted against the BOJ's decision to end negative rates and the two rate hikes, due to concerns over the potential damage to small and mid-sized firms. His departure follows the appointment in March of Junko Koeda, an academic known as a fiscal and monetary hawk who succeeded another dovish member, tipping the board increasingly in favour of steady rate hikes.

(Reuters)

An escalating global tariff war could provide challenges for the emerging data centre sector and cause slower growth, Laura Cozzi, the International Energy Agency (IEA) Director of Technology told Reuters. The US, China and the European Union together are set to account by 2030 for 80% of the forecast growth in data centre demand growth, which is expected to be dominated by Artificial Intelligence (AI) use, the IEA said in a report on Thursday.

The report's headwind scenario "encompasses many of the things we are seeing - slower economic growth, more tariffs in more countries, so indeed yes (the current tariff environment) is a scenario in which AI would see a slower growth than what we see in our base case," Cozzi said. Global electricity consumption from data centres is expected to rise to around 945 terawatt hours (TWh) by 2030 in the IEA's base case scenario, but the "headwind scenario" would see that drop to 670 TWh, IEA data showed.

In the United States, data centres are expected to account for nearly half of electricity demand growth between now and 2030, and the country is expected to lead in data centre development globally, according to IEA data. US electricity utilities have been fielding massive requests for new capacity that would exceed their peak demand or existing generation capacity, raising concerns that tech companies are approaching multiple power utility providers, inflating the demand outlook. The report aims to work with tech companies and industry to make sense of the real queue for data centres, which is ultimately going to be essential for AI to get the electricity it needs, Cozzi said.

Strain on grids could also lead to project delays, with about 20% of planned data centre projects at risk. Demand for transmission lines and critical grid and generation equipment are in high demand, reflecting this risk, the IEA report said. Some 50% of data centres under development in the United States are in pre-existing large clusters, potentially raising risks of local bottlenecks, it said.

(Reuters)

Oil prices retreated on Thursday as US President Donald Trump ramped up a trade war with China, even as he announced a 90-day pause on tariffs aimed at other countries. Brent futures fell 77 cents, or 1.18%, to $64.71 a barrel by 0320 GMT, while U.S. West Texas Intermediate crude futures fell 65 cents, or 1.04%, to $61.70. Following the tariff pause for most countries, the benchmark crude contracts had settled 4% higher on Wednesday after dropping as much as 7% during the session.

Trump, however, raised the tariff rate for China to 125% effective immediately, from the previously announced 104% tariff that had kicked off earlier on Wednesday. The higher US tariffs on China leave plenty of uncertainty in the markets, ING commodities strategists said in a research note on Thursday. "This uncertainty is still likely to drag on global growth, which is clearly a concern for oil demand," they said. "The ICE Brent forward curve is signalling a better-supplied oil market," the strategists said, with ICE Brent shifting into contango from the January 2026 contract onwards.

China also announced an additional import levy on US goods, imposing an 84% tariff from Thursday. "We may expect oil prices to resume its broader downward trend once the optimism around the recent tariff reprieve fades," said Yeap Jun Rong, market strategist at online trading platform IG. "Demand-side headwinds persist, with China's growth outlook at risk from the ongoing tit-for-tat," Yeap said. Investors were eyeing mixed supply drivers as well. "Prices also found some support after the Keystone Pipeline declared force majeure on scheduled oil shipments," said ANZ Research analysts on Thursday, noting though there were downside risks on signs of surging supply from OPEC members.

The Keystone oil pipeline from Canada to the United States remained shut on Wednesday following an oil spill near Fort Ransom, North Dakota, while plans to return it to service were being evaluated, its operator South Bow said. Elsewhere, the Caspian Pipeline Consortium resumed loading oil at one of two previously shut Black Sea moorings, it said on Wednesday, after a court lifted restrictions put on the Western-backed group's facility by a Russian regulator. In the United States, crude inventories rose by 2.6 million barrels in the week to April 4, the Energy Information Administration said, nearly double the expectations in a Reuters poll for a 1.4-million-barrel rise.

(Reuters)

China’s consumer and factory prices continued to fall in March, underlining persistent deflation and weak demand amid rising US trade pressure. Consumer prices dropped 0.1% year-on-year, missing expectations, while factory-gate prices fell 2.5% — the sharpest decline in four months, according to official data. “Deflationary pressures persisted last month and will almost certainly deepen over the coming quarters,” said Julian Evans-Pritchard of Capital Economics, citing export risks and commodity price drops.

The National Bureau of Statistics blamed falling energy demand and global crude prices for the deeper factory deflation. Core inflation rose 0.5%, offering some relief, but consumption remains fragile. Citi economists forecast a 1–1.5 trillion yuan stimulus mid-year, with potential support via subsidies and low-income aid. While US President Trump eased tariffs on some nations, he doubled down on China, threatening duties of up to 125%. “Support for domestic demand may not be enough to offset weaker exports,” Evans-Pritchard added.

(With inputs from Reuters)

China and the European Union have agreed to strengthen economic and trade cooperation in response to US tariffs, Beijing said on Thursday. In a video call on Tuesday, Chinese Commerce Minister Wang Wentao and European Commissioner Maros Sefcovic discussed restarting trade relief talks and immediately launching negotiations on electric vehicle (EV) price commitments, the Commerce Ministry said.

The conversation came just before US President Donald Trump’s new tariffs on China took effect. While Trump later said he would temporarily ease duties for some countries, he threatened to raise tariffs on Chinese goods to 125%. Wang said China was ready to deepen trade, investment, and industrial ties with the EU. He urged both sides to defend the rules-based multilateral trade system and promote liberalisation to “inject more stability and certainty” into the global economy. They also discussed improving the business environment and managing trade transfer issues, while agreeing to coordinate on World Trade Organization (WTO) reforms.

The EU had imposed up to 35.3% additional tariffs on Chinese EVs in October, following an anti-subsidy probe. Talks on minimum price commitments are expected to resume, though no timeline has been set.

(Reuters)