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

A week of turbulence unleashed by U.S. President Donald Trump's tariffs showed little sign of easing on Friday, with markets again tumbling and foreign leaders trying to work out how to respond to a dismantling of the world trade order.

Battered financial markets were given a brief reprieve Wednesday when Trump decided to pause duties for dozens of countries for 90 days. However, his escalating trade war with the world's No.2 economy, China, has fuelled fears of recession and further retaliation.

U.S. Treasury Secretary Scott Bessent tried to assuage sceptics by telling a cabinet meeting on Thursday that more than 75 countries wanted to start trade negotiations, and Trump himself expressed hope of a deal with China.

But the uncertainty in the meantime extended some of the most volatile trading since the early days of the COVID-19 pandemic. (Reuters)

The 30-share BSE benchmark Sensex jumped 1,210.68 points to 75,057.83 in early trade. The NSE Nifty surged 388.35 points to 22,787.50.

The US has announced suspension of additional tariffs on India for 90 days until July 9 this year, according to the White House executive orders.

On April 2, US President Donald Trump slapped universal duties on about 60 countries exporting goods to America and additional steep levies on countries like India, potentially impacting sales of products from shrimp to steel in the world's biggest economy. (PTI)

Both Sensex and Nifty opened in green after the Trump administration decided to pause the reciprocal tariffs for 90 ease, easing global economical tensions.

Sensex was up over 1100 points on Friday morning as the stock market reopened, while Nifty was up over 380 points at 9.15 am.

The Trump administration aims to convince some immigrants without legal status to self-deport by adding them to a database of dead people, thus rendering their Social Security numbers inoperable, an administration official told Reuters.

Immigrants who were legally admitted to the U.S. under the Biden administration but have since had their temporary status revoked would be added to the Social Security Administration's "death master list," which is normally used to identify dead people who should no longer receive Social Security benefits, said the source, who requested anonymity to discuss the plans. (Reuters)

Asian shares sank Friday after US stocks reversed much of their historic gains from the day before.

The deepening worries over President Donald Trump's trade war initially helped pull Japan's Nikkei 225 share index down 5.6%.

By mid-morning in Tokyo, it was down 4.7% at 32,969.95.

The yen surged against the US dollar, which also lost value against the euro.

One dollar bought 143.48 Japanese yen, down from about 146 yen a day earlier. The euro rose to $1.1305 from $1.1195.

South Korea's Kospi fell 1.6% to 2,400.34, while in Australia, the S&P/ASX 200 shed 2.1% to 7,552.10.

On Thursday, the S&P 500 tumbled 3.5%, slicing into Wednesday's surge of 9.5% following Trump's decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average dropped 1,014 points, or 2.5%, and the Nasdaq composite tumbled 4.3%. (AP)

Australian shares tanked over 2% on Friday as investors, who drove a relief rally in the previous session, fretted about the trade face-off between the world's two largest economies and the fallout from U.S. tariffs on global economic growth.

The S&P/ASX 200 index declined as much as 2.4% to 7,524.50 points by 0016 GMT, after the benchmark surged 4.5% on Thursday following U.S. President Donald Trump's move to temporarily lower tariffs on many countries.

The benchmark was looking to lose nearly 2% for the week, if losses hold. (Reuters)

Wall Street stocks tumbled on Thursday, with all three major US stock indexes suffering significant losses due to mounting worries over the economic impact of Donald Trump's tariff policies. The S&P 500 lost 3.45%, closing at 5,267.11 points, while the Nasdaq Composite dropped 4.31% to 16,387.31.

The Dow Jones industrial average also fell 2.54% to 39,578.94. This sharp decline comes after a surge the previous day, fueled by relief over Trump's temporary pause on new tariffs announced last week.

UK Prime Minister Keir Starmer and Japan's Prime Minister Shigeru Ishiba have agreed on the need for a calm and pragmatic approach to address US tariffs. In their discussion, they emphasized the importance of like-minded partners working together to lower trade barriers. This comes amid concerns over the impact of US trade policies on global markets.

Starmer has been advocating for a proactive approach to address the challenges posed by US tariffs, stating that the UK must "rise to the moment" and adapt to the changing global landscape. He also expressed hopes for an economic deal with the US to soften the blow of tariffs, while strengthening trade relations with other countries. Chancellor Rachel Reeves is set to discuss this further with US officials during her visit to Washington later this month. -BBC

Democratic lawmakers are calling for an investigation into possible insider trading within the Trump administration after a sudden stock market surge following President Trump's tariff announcement. The controversy began when Trump posted on social media, "THIS IS A GREAT TIME TO BUY!!!", hours before announcing a 90-day reduction of tariffs on goods from dozens of countries, causing the S&P 500 to jump nearly 10%.

Gold prices have surged to a record high as investors seek safe-haven assets amid escalating US-China trade tensions and a decline in the dollar. Spot gold rose 2.6% to $3,160.82 an ounce, after reaching a peak of $3,171.49 earlier in the session. US gold futures also saw a significant increase, rising 3.2% to settle at $3,177.5. -The Guardian

The European Union and the United Arab Emirates have agreed to launch free trade negotiations, marking a significant development in their bilateral relations. This move aims to deepen economic ties and promote growth, focusing on trade in goods, services, investment, and strategic sectors like renewable energy, green hydrogen, and critical raw materials. -The Guardian

There's a growing rift within Donald Trump's inner circle, with advisors Elon Musk and Peter Navarro at odds over the president's tariff policy. According to BBC's North America correspondent Anthony Zurcher, this spat highlights the conflict within Trump's team, where different factions are pushing for contrasting approaches. Treasury Secretary Scott Bessent advocates for a more restrained policy focused on China, while Navarro champions a more aggressive trade stance.

The brief stock market recovery has lost its momentum, with Erin Delmore, BBC North America Business correspondent, noting that the initial euphoria has dissipated. Yesterday's surge in the three major US stock market indexes has been cut in half due to a sell-off on Wall Street, triggered by China's increased tariff rate of 145%.

Uncertainty surrounding Donald Trump's tariff policies has also contributed to the market's volatility, leaving investors on edge.

The US House of Representatives on Wednesday narrowly passed a sweeping budget resolution that sets the stage for extending President Donald Trump’s 2017 tax cuts, overcoming internal Republican dissent and unified Democratic opposition.

The vote, which passed 216 to 214, is a critical procedural move. It allows Republicans to advance major tax legislation later this year without Democratic support, using budget reconciliation rules to bypass a Senate filibuster.

The plan, which lacks detailed policy language, functions as a broad fiscal framework. It envisions $5 trillion in tax cuts over the next decade while adding roughly $5.7 trillion to the national debt. Despite its sweeping impact, the legislation only mandates $4 billion in spending cuts, a dramatic retreat from earlier proposals that called for $1.5 trillion in savings.

Two Republicans broke ranks to vote against the bill, echoing concerns that the budget does too little to rein in federal spending. The razor-thin vote reflects House Speaker Mike Johnson’s delicate balancing act, with a 220-213 Republican majority and little room for defections.

Johnson was forced to delay the vote earlier in the week to address opposition from fiscal conservatives within his party.

Trump enthusiastically backed the bill from the sidelines, calling it a major step toward fulfilling his economic agenda. On social media, he posted:

“Great News! ‘The Big, Beautiful Bill’ is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close.”

The legislation aims to extend the signature tax cuts from Trump’s first term, including reductions in individual and corporate tax rates that were central to the 2017 Tax Cuts and Jobs Act. (Reuters)

US inflation came in lower than expected in March, providing a political lift for President Donald Trump as he faces criticism over his sweeping trade tariffs.

Consumer prices dipped by 0.1% last month, with annual inflation easing to 2.4%—down from 2.8% in February. The drop was largely driven by a 2.4% decline in energy prices, particularly gasoline. Food prices, meanwhile, rose by 0.4%.

The figures offer Trump a timely win, bolstering his claims that inflation is easing under his leadership. Taking to Truth Social, the president celebrated the news with a post reading:

“Just out: ‘INFLATION IS DOWN!!!’”

US President Donald Trump says his proposed legislation to extend first-term tax cuts is “coming along really well,” despite facing pushback from some Republicans in the House.

The Senate has approved the bill, but a few right-wing lawmakers in the House have criticised it for not slashing government spending enough.

“Great News! ‘The Big, Beautiful Bill’ is coming along really well. Republicans are working together nicely. Biggest Tax Cuts in USA History!!! Getting close,” Trump wrote in a social media post.

Wall Street slipped into the red at Thursday’s opening bell, following a historic rally the day before sparked by Donald Trump’s 90-day tariff pause.

The S&P 500 dropped 2.1% in early trading, pulling back after its third-strongest gain since World War II, when it soared over 9% on tariff relief optimism.

The Dow Jones Industrial Average fell 1.6%, or 675 points, opening at 39,932.

Meanwhile, the tech-heavy Nasdaq shed 2.7%, as investors braced for the toll new US-China tariffs could take on the technology sector.

As US President Donald Trump ramped up tariffs on Chinese goods to a staggering 125%—Beijing hit back not just with retaliatory tariffs, but by reducing its import of American films and urging Washington to return to the negotiating table with a spirit of fairness.

The Chinese response came swiftly. The state-run China Film Administration announced plans to scale back the number of US films entering the Chinese market, citing the latest tariff escalation as a trigger. “The US government's erroneous practice of imposing excessive tariffs on China is likely to further diminish the Chinese audience's favourable perception of American films,” the agency said in a statement. It added that China would “adhere to market principles, respect audience choices and moderately reduce the import volume of American films.”

Beyond Hollywood, Chinese officials doubled down on their resistance to what they view as Washington’s pressure tactics. Speaking at a press conference on Thursday, Commerce Ministry spokesperson He Yongqian said China remains open to dialogue—but only under conditions of mutual respect. “Pressure, threats and blackmail are not the right way to deal with China,” He said. “We hope that the two countries will meet each other halfway and work towards resolving differences through dialogue and consultation, guided by the principles of mutual respect, peaceful coexistence and win-win cooperation.”

Still, He made it clear that China is prepared for a prolonged standoff if diplomacy fails. “If the US is bent on waging a trade war, China will fight to the end,” he stated.

While both sides dig in, a rare survey gauging Chinese public opinion revealed growing domestic anxiety over the economic fallout of the ongoing trade war. The rising tensions have already cast a shadow over billions in trade. Trump’s new tariffs will hit over $438 billion worth of Chinese exports, while Beijing’s retaliatory duties now apply to 84% of the $143 billion in US goods shipped to China.

Day after President Trump’s decision to cut the tariffs on countries who hadn’t retaliated against his first wave of trade levies, to 10%, the European Union on Thursday paused its 'countermeasures' against the Washington for 90 days, to allow time for negotiations.

Ursula von der Leyen, president of the European Commission, has posted, "We took note of the announcement by President Trump. We want to give negotiations a chance. While finalising the adoption of the EU countermeasures that saw strong support from our Member States, we will put them on hold for 90 days. If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table."

Here’s a market update based on the latest global developments following President Donald Trump’s 90-day tariff pause:

📌Japan: The Nikkei surged over 9%, leading global gains as investors welcomed the tariff reprieve.

📌Germany: The DAX initially soared over 8%, before easing to a 5.3% gain, trading at 20,720.86 by midmorning.

📌France: The CAC 40 jumped 5%, reaching 7,204.23 in Paris.

📌UK: The FTSE 100 rose 4.0%, hitting 7,983.37, continuing its strong rebound.

📌China: Gains were more moderate, as tit-for-tat tariffs between Beijing and Washington continue to escalate.

📌US Futures: Sentiment turned cautious, with S&P 500 futures down 2.1% and Dow Jones futures falling 1.6%, indicating a weaker open on Wall Street.

Markets are weighing the short-term relief of the tariff pause against continued uncertainty in US-China trade tensions. (Reuters)

The FTSE 100 index remains sharply higher, though it has pulled back slightly from its early surge. The blue-chip index is currently up 320 points at 8001, marking a 4.2% gain on the day.

That would make it the strongest percentage rise since 9 November 2020, when Pfizer and BioNTech announced successful trial results for their coronavirus vaccine.

However, the London market is still around 7.5% below the level it held before Donald Trump’s announcement of sweeping new tariffs on the rest of the world.

Wall Street is poised to open lower later today as the initial optimism over Donald Trump’s tariff pause begins to fade.

Futures indicate the Dow Jones industrial average could fall by 1.3%, while S&P 500 futures are down 1.8%, suggesting a cautious mood among investors.

Following the strongest rally since 2008 yesterday, attention is turning back to the risks of a deepening US-China trade war.

Tech stocks are expected to retreat, with Tesla shares down 4.5% in pre-market trading after soaring 22% in the previous session.

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)

US President Donald Trump on Wednesday signed an executive order to revitalize US shipbuilding and curb China’s dominance in the global shipping sector, pledging to spend “a lot of money on shipbuilding.” “We used to build a ship a day, and now we don't do a ship a year, practically,” he said. The order mandates the US Trade Representative (USTR) to finalize remedies—such as million-dollar port fees on ships tied to Chinese-built or -flagged fleets—by April 17. USTR Jamieson Greer clarified that not all proposed measures would be enforced, saying, “now we consider which of those measures is most appropriate.”

Lawmakers from both parties, including Senators Mark Kelly and Todd Young, backed the move and plan to reintroduce legislation to support the initiative. The order also calls for tariffs on Chinese-origin ship-to-shore cranes, enforcement of harbor fees, and the creation of a Maritime Security Trust Fund to boost US maritime capacity. China dismissed US claims of unfair competition, with foreign ministry spokesperson Lin Jian stating, “The development of China's shipbuilding industry is the result of technological innovation and active participation in market competition by enterprises.”

(With inputs from 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)

Taiwan could buy an additional $200 billion worth of goods from the US over the next decade and increase its share of liquefied natural gas (LNG) imports from 10% to 30% as part of ongoing trade talks, Economy Minister Kuo Jyh-huei told parliament on Thursday. This move, led by state-backed entities, aims to help narrow the trade deficit, though it excludes private company purchases. "That was the 'direction' being eyed," Kuo said, noting Taiwan’s LNG currently comes mostly from Australia and Qatar. President Lai Ching-te has pledged to seek a zero-tariff regime with the US, increase investment and purchases, and avoid retaliatory tariffs—even as a 32% tariff, now paused by President Donald Trump, had spooked markets. Foreign Minister Lin Chia-lung added, "We hope to take advantage of the huge US market... to form a Taiwan-US coalition, a joint fleet approach." The US has received Taiwan’s trade proposals and responded, Lin said, without elaborating.

Taiwan’s benchmark stock index jumped a record 9.3% on Thursday following three days of steep losses, as investors reacted to the US tariff reprieve. Shares of TSMC and Foxconn, both key US suppliers, rebounded nearly 10%. Despite the rally, Taiwan’s central bank governor Yang Chin-long warned of lingering global uncertainty due to Trump's tariff moves. "At present more than 80% [of reserves in US Treasuries] is ideal, and we will assess whether to increase it," Yang said. Premier Cho Jung-tai noted the government would seize the opportunity for “direct and effective” talks with Washington.

(With inputs from Reuters)

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)

The cost of insuring against defaults in Asian debt fell on Thursday as investors breathed a sigh of relief at a pause on some of the heaviest US tariffs. The five-year credit default swap spread on the Markit Itraxx Asia ex-Japan index, comprising sovereign and company debt, fell about 8 basis points to 114 bps, according to S&P Global Market Intelligence. Five-year CDS spreads on the Itraxx Japan index fell about 18 bps to 76.75 bps. The moves unwind without fully reversing a recent spike on fears that US tariffs tip the world into recession.

(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)