Afp Business Asia

US President Donald Trump has ramped up his trade war against China, further raising import tariffs on Beijing to 125 percent despite pausing them for other countries.The move came hours after China announced reciprocal action against the United States in response to a previous levy hike.AFP looks at how the escalating trade war between the world’s two biggest economies is playing out — and what impact it might have:- What actions has Trump taken so far? -Trump said Wednesday that the US would raise tariffs on Chinese imports to a staggering 125 percent, citing a “lack of respect” from Beijing.The announcement came as the mercurial president announced a halt on tariffs for other nations for 90 days, following panic on global markets.The new levy on China marked the latest salvo in a brewing tit-for-tat trade war between the two global superpowers.A previous round of US tariffs had come into force earlier on Wednesday, jacking up duties on China to 104 percent.As well as the blanket levies, China is also under sector-specific tariffs on steel, aluminium and car imports.- How has China responded? -China has vowed to fight the measures “to the end” and so far has unveiled reciprocal tariffs each time Trump has upped the ante.Responding to the 104 percent duties on Wednesday, Beijing said it would raise its own tariffs on US imports from 34 percent to 84 percent, effective from Thursday.It also said it had filed a complaint with the World Trade Organization (WTO), citing “bullying” tactics by the Trump administration.China had not responded to the latest hike in tariffs to 125 percent levies as of Thursday morning.But its countermeasures have begun to step outside the economic sphere, with government departments warning citizens of the “risks” of travelling to the US or studying in parts of the country.And while Beijing has blasted the US with fiery rhetoric, it has continued to urge “equal dialogue” to resolve the trade spat.Zhiwei Zhang, chief economist at Pinpoint Asset Management, said China had sent a “clear signal” that it would not back down, adding that there was “(no) quick and easy way out” of the conflict.Haibin Zhu, chief China economist at J.P. Morgan, agreed, saying “the bar for a possible deal is high”.- Why is China so vulnerable to tariffs? – Trade between the world’s two largest economies is vast.Sales of Chinese goods to the US last year totalled more than $500 billion — 16.4 percent of the country’s exports, according to Beijing’s customs data.And China imported $143.5 billion in goods from the United States in 2024, according to the office of the US Trade Representative.That trade was dominated by agricultural products, primarily oilseeds and grains, according to the US-China Business Council. Oil and gas, pharmaceuticals and semiconductors are also among major US exports to China.Beijing has long drawn Trump’s ire with a trade surplus with the United States that reached $295.4 billion last year, according to the US Commerce Department’s Bureau of Economic Analysis.Chinese leaders have been reluctant to disrupt the status quo, in part because the country’s export-driven economy is particularly sensitive to vicissitudes in international trade.US duties also threaten to harm China’s fragile post-Covid economic recovery as it struggles with a debt crisis in the property sector and persistently low consumption — a downturn Beijing had sought to slow with broad fiscal stimulus last year.But an intensified trade war will likely mean China cannot peg its hopes for strong economic growth this year on its exports, which reached record highs in 2024.- What impact will US tariffs have? -The head of the WTO said Wednesday that the US-China tariff war could cut trade in goods between the two countries by 80 percent.Given the two economic giants account for three percent of world trade, the conflict could “severely damage the global economic outlook”, Ngozi Okonjo-Iweala said.Analysts expect the levies to take a significant chunk out of China’s GDP, which Beijing’s leadership hope will grow five percent this year.Likely to be hit hardest are China’s top exports to the United States — everything from electronics and machinery to textiles and clothing, according to the Peterson Institute of International Economics.And because of the crucial role Chinese goods play in supplying US firms, the tariffs may also hurt American manufacturers and consumers, analysts have warned.Paul Ashworth, chief North America economist at Capital Economics, said it was “difficult to see either side backing down in the next few days”. But, he added, “talks will eventually happen, although a full rollback of all the additional tariffs… appear unlikely”.

Asian stocks rocketed Thursday as investors breathed a huge sigh of relief after Donald Trump announced a pause on crippling tariffs on US partners, with Chinese markets even brushing off his decision to ramp up duties on Beijing to 125 percent.Equities surged across the board, tracking a blistering performance on Wall Street, after the US president said he would delay for 90 days measures announced last week that set off a firestorm on trading floors and sparked warnings of a global recession.Trump said he would keep in place a basic levy of 10 percent on dozens of countries but upped the ante in his brutal trade war with superpower rival China by hitting it even harder after it retaliated in kind at the weekend.Trump made the decision because he said investors were “jumping a little bit out of line” as markets collapsed and US Treasuries — considered the safest option in times of crisis — were also showing signs of cracking on concerns about the world’s top economy.People “were getting yippy, a little bit afraid”, he added, referring to a term in sports to describe a loss of nerves.The extra tariffs on Beijing, however, were “based on the lack of respect that China has shown to the world’s markets”, Trump said.The president denied he had made a U-turn, telling reporters that “you have to be flexible”.Asian traders welcomed the move, ramping up equities throughout the region.Hong Kong rallied more than four percent — a third day of gains after collapsing more than 13 percent on Monday in its worst day since 1997 during the Asian financial crisis. Shanghai gained more than one percent.The two markets have been given extra support by optimism that Chinese officials will unveil fresh stimulus to support the economy in light of the tariff measures.Official data showing another drop in consumer prices last month added to those hopes.- ‘Fear to euphoria’ -Tokyo’s Nikkei surged more than eight percent, Seoul and Singapore each piled on more than five percent, and Sydney and Jakarta more than four percent.Taipei’s 9.3-percent gain was its best rise on record — after Monday’s 9.7-percent drop represented its worst fall.Shares in Vietnam, which was facing some of the heftiest tariffs, jumped 6.5 percent, while Manila and Wellington were also deep in the green.Tech firms were the standout performers, with Sony, Sharp, Panasonic and SoftBank chalking up double-digit gains, while airlines, car makers and casinos also enjoyed strong buying.Apple suppliers posted blockbuster rallies — Hong Kong-listed AAC Technologies surged 23 percent and in Taiwan, Hon Hai added almost 10 percent.”Asia markets are flipping the switch — from fear to euphoria — as Trump throws a 90-day lifeline, pausing the reciprocal tariff barrage,” said Stephen Innes at SPI Asset Management.”The president’s post nodded to the ‘yippy’ reaction to his historic hikes, and honestly, that sums it up. “We just witnessed one of the all-time bouncebacks — and now, we look for Asia investors, much like their North American counterparts, to step in and buy the ‘yips’.”US Treasury yields also edged down, after a successful auction of $38 billion in notes, said Briefing.com.That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.The tumult caused by Trump’s trade war is also causing a headache for the US Federal Reserve as it tries to decide whether to cut interest rates to protect the economy, or keep them elevated to ward off the inflation many say tariffs will fuel.Minutes from the central bank’s March meeting, released Wednesday, showed members were concerned that “the announced or planned tariff increases were larger and broader than many of their business contacts had expected”. That was before the president unveiled his widespread duties of up to 50 percent on friend and foe — now paused until July.Some decision-makers noted that they “may face difficult tradeoffs if inflation proved to be more persistent while the outlook for growth and employment weakened”, the minutes showed.Oil prices edged down after a much-needed bounce of more than four percent on Wednesday. Still, both main contracts remain under pressure amid concerns about the global economy and its impact on demand.Gold also rallied around two percent, while bitcoin put on more than six percent.- Key figures around 0230 GMT -Tokyo – Nikkei 225: 8.3 percent at 34,353.17 (break)Hong Kong – Hang Seng Index: UP 4.2 percent at 21,108.06Shanghai – Composite: UP 1.6 percent at 3,236.06Dollar/yen: DOWN at 147.00 yen from 147.82 yen on WednesdayEuro/dollar: UP at $1.0970 from $1.0948 Pound/dollar: UP at $1.2825 from $1.2810Euro/pound: UP at 85.54 pence from 85.45 penceWest Texas Intermediate: DOWN 0.6 percent at $61.98 per barrelBrent North Sea Crude: DOWN 0.8 percent at $64.96 per barrelNew York – Dow: UP 7.9 percent at 40,608.45 (close)London – FTSE 100: DOWN 2.9 percent at 7,679.48 (close)

US President Donald Trump abruptly paused tariffs on most countries, sparking euphoria on global markets Thursday, but upped the ante on a brutal trade war with superpower rival China.After days of turmoil, stocks on Wall Street and across Asia saw huge surges in reaction to Trump’s announcement that he was halting a levy hike for almost all nations for 90 days.But Trump also said he was raising tariffs on China to 125 percent because of a “lack of respect.”Trump denied that he had backtracked on the tariffs, telling reporters that “you have to be flexible.””People were jumping a little bit out of line, they were getting yippy, a little bit afraid,” Trump said. “Yippy” is a term in sports to describe a loss of nerves.He said he had been watching the “very tricky” state of the crucial US bonds market before his decision.”I saw last night where people were getting a little queasy,” he said, as US bond yields rose during the stocks sell-off — a major economic red light as American sovereign government debt is normally seen as a safe haven for investors in troubled times.Trump also predicted that trade deals will be made with all countries, including China, which has for now, refused to roll back retaliatory tariffs on US goods.”A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said, adding however that China’s leaders “don’t quite know how to go about it.”Trump also said that he “can’t imagine” increasing Chinese tariffs more than he has.- China duel -Markets have been on a rollercoaster ride since Trump’s announcement of sweeping global tariffs one week ago on what he called “Liberation Day” before his dramatic pause on Wednesday.Trump had imposed a 10 percent baseline tariffs on all countries which came into effect on Saturday, and higher rates on key trading partners like China and the European Union that he accused of cheating the United States, which activated on Wednesday.But as markets swayed yet again, Trump said in a surprise announcement on his Truth Social network that “I have authorized a 90 day PAUSE” on the higher tariffs, while the baseline 10 percent would remain.He said that he took the decision after more than 75 countries reached out to negotiate and did not retaliate.Japan — which had been slapped with 24 percent under the so-called reciprocal tariffs — said it welcomed the news but still “strongly” demanded that Washington reconsider other levies on its steel and auto exports.At the same time, Trump ramped up his confrontation with China, which has announced retaliatory tariffs of 84 percent on US imports from 12:01 pm (0401 GMT) on Thursday.Beijing said Washington’s steps pile “mistakes on top of mistakes”.The European Union had earlier launched its own counterattack, announcing measures targeting some US products from next week in retaliation for American duties on global steel and aluminum exports.The 27-nation bloc will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.But the EU notably did not retaliate against the separate “Liberation Day” tariffs of 20 percent that came into effect on Wednesday.- ‘BE COOL!’ -Wall Street stocks rocketed on Trump’s pause announcement.The S&P 500 surged 9.5 percent to 5,456.90, snapping a brutal run of losses over the past week.Markets in Asia on Thursday also rallied, with Hong Kong, Taipei, Australia and Tokyo surging on opening after days of losses.Stocks in Chinese economic powerhouse Shanghai were also up, despite Trump’s decision to further hike tariffs.And Indonesia’s benchmark stock index rallied nearly five percent higher at the open.Before his pivot, Trump said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.”I’m telling you, these countries are calling us up kissing my ass,” Trump told a dinner with fellow Republicans on Tuesday night.Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.With the trade war between the world’s two biggest economies showing little signs of abating, China told tourists on Wednesday to “fully assess the risks” before travelling to the United States.Separately, US Defense Secretary Pete Hegseth warned against Chinese “threats” as he visited Panama, whose canal is at the center of a row between Beijing and Washington.burs-oho/tym

Consumer prices in China fell in March for the second straight month, official data showed Thursday, as the world’s second-largest economy struggles to boost spending and a trade war with the United States deepens.The drop comes as Beijing seeks to boost domestic consumption, which has yet to recover to pre-pandemic levels.The consumer price index (CPI) — a key measure of inflation — was down 0.1 percent year-on-year in March, according to data released by the National Bureau of Statistics (NBS).The figure came in slightly lower than expected by analysts surveyed by Bloomberg who predicted the index would remain unchanged.But the index’s decline narrowed from the 0.7 percent drop year-on-year in February.The past two months have reversed the 0.5 percent uptick seen in January, when a surge in spending during the Lunar New Year boosted inflation to its highest rate in months.The prices of food, tobacco and alcohol in March fell by 0.6 percent year-on-year.While deflation suggests the cost of goods is falling, it poses a threat to the broader economy as consumers tend to postpone purchases under such conditions, hoping for further reductions in prices.A lack of demand can then force companies to cut production, freeze hiring or lay off workers, while potentially also having to discount existing stocks — dampening profitability even as costs remain the same.Beijing unveiled a slew of measures to boost the economy last year, including cutting interest rates and cancelling restrictions on homebuying.China’s fragile recovery is also threatened by a trade war with the United States instigated by President Donald Trump, who further raised tariffs on China to 125 percent on Wednesday.”Deflationary pressure is persistent,” wrote Zhiwei Zhang, president and chief economist at Pinpoint Asset Management, in a note.”The policy uncertainty in the US is still elevated,” he added.Premier Li Qiang in March announced a national growth target of “around five percent” for this year — the same as 2024.Many economists consider the goal to be ambitious given the headwinds facing China’s economy.

It ended not with a bang, but with US President Donald Trump and two top aides writing a social media post.Trump’s decision to pause worldwide tariffs capped an extraordinary week of global panic since he announced the levies on what he called “Liberation Day.” After repeatedly denying that he was considering a halt, the first sign that something was up came as markets braced for another brutal session.”BE COOL!” Trump urged Americans on his Truth Social network at 9:33 am in Washington (1333 GMT) before adding that it was a “GREAT TIME TO BUY!!!”Few seemed to take the 78-year-old Republican seriously, and turmoil started to spread to usually safe bond markets.But Trump later admitted that he had made the decision “early this morning” on Wednesday to pause the tariffs.The author of the “Art of the Deal” is rarely known for his humility, but he appeared to be in a reflective mood as he answered questions about the decision.”Over the last few days, I’ve been thinking about it,” Trump told reporters in the Oval Office as he signed a series of executive orders — including one titled “Maintaining Acceptable Water Pressure in Showerheads.”Trump said he then huddled early Wednesday with Scott Bessent, his bespectacled US Treasury Secretary, and Howard Lutnick, the brash Commerce Secretary and former trader. “It probably came together early this morning,” said Trump. “We didn’t have access to lawyers. We wrote it up from our hearts, right? It was written from the heart, and I think it was well written too.”What emerged was a lengthy post on his Truth Social network at 1:18 pm local time (1718 GMT) saying that Trump had “authorized a 90 day PAUSE” in tariffs, except on China, which he punished with even higher levies of 125 percent.Trump’s administration insisted it was all part of a grand strategy that had brought 75 countries to the negotiating table in his quest to reduce America’s trade deficit.”Many of you in the media clearly missed the art of the deal,” Press Secretary Karoline Leavitt told reporters afterward.Lutnick posted that he and Bessent “sat with the President while he wrote one of the most extraordinary Truth posts of his Presidency.”- ‘Yippy’ -The White House posted a picture of Trump at the Resolute Desk in the Oval Office, flanked by Lutnick and Bessent, with his mobile phone in front of him.It also posted one of Trump’s own posts from 2014, reading: “Deals are my art form. Other people paint beautifully or write poetry. I like making deals, preferably big deals.”As markets made a turbocharged rebound, Trump hosted a group of racing drivers with their brightly-colored cars at the White House.Trump said the markets had become “a little bit yippy, a little bit afraid — unlike these champions,” as he pointed to the drivers.”Liberation Week” turned out to be a frantic one in which the White House struggled to get its message straight about whether or not it was prepared to negotiate.Trump spent the weekend in Florida playing golf, but appeared touchy as he flew back to Washington, saying that “sometimes you have to take medicine to fix something” in reference to the tariffs.Lutnick, who has become one of Trump’s top cheerleaders, repeatedly said there would be no negotiations, as did trade advisor Peter Navarro.But then Bessent was rolled out on Monday to deliver a softer message that, indeed, negotiations might be possible.What followed was the remarkable spectacle of Trump’s tariff-skeptical aide Elon Musk publicly branding Navarro “dumber than a sack of bricks.”But by Wednesday evening it was over — for 90 days at least — and the White House was keen to turn attention towards the stock markets, where the Nasdaq had its biggest single day leap since 2001, while the Dow Jones had its best day since 2020 and the S&P 500 its best since 2008.Trump, who spent most of the week bashing allies and adversaries alike, struck a magnanimous tone about his announcement. “It was written as something that I think was very positive for the world and for us,” he said.

Wall Street stocks rocketed higher Wednesday following President Trump’s shock move to pause many new tariffs, lifting an equity market beaten down by days of losses amid rising recession worries.The catalyst came around 1720 GMT when Trump announced a 90-day pause on the most onerous new tariffs for every country except China, which was targeted with a whopping 125 percent levy.Within moments of Trump’s social media announcement, the Dow index surged ahead around 2,500 points along the way to a nearly eight-percent gain on the session.The tech-rich Nasdaq won 12.2 percent to notch its best day in 24 years.Oil prices jumped more than four percent while the dollar also strengthened.The reversals followed another down day on European bourses reflecting worsening fears of a US recession and global slowdown, in part due to expectations that widespread trade wars would reignite inflation.Instead of the onerous tariff levels unveiled last week during Trump’s “Liberation Day” event, affected US trading partners excluding China would face a 10 percent tariff rate, temporarily reverting to a level that took effect over the weekend. That move had already roiled markets.Trump singled out the world’s second-biggest economy however, saying its tariff rate would be raised to a prohibitive 125 percent “based on the lack of respect that China has shown to the world’s markets.”Trump denied that he had backtracked on the tariffs, telling reporters that “you have to be flexible.””People were jumping a little bit out of line, they were getting yippy, a little bit afraid,” Trump said. “Yippy” is a term in sports to describe a loss of nerves.”When markets are pricing in worst-case scenarios, it doesn’t take much good news to turn that opinion around,” said Art Hogan of B. Riley Wealth Management.Hogan added that investors were waiting for any sense of a more reasonable trade process, saying this situation might “be less of a drag on economic activity and earnings.”Sam Stovall, chief investment strategist at CFRA Research, said most of the equity purchases Wednesday likely came from short-term investors looking for quick gains or traders eager to cover positions purchased prior to the shift in fortune.Investment advisors typically advise clients to avoid trading during periods of great upheaval when even major losses can be reversed if a stockholder’s approach is that of a long-term investor.Retail investors “will want to see whether this story has legs,” Stovall said. “Investors and clients have been whipsawed and they don’t like it.”- Bond market volatility -A secondary factor in Wednesday’s positive US session was the successful auction of $38 billion in US Treasury notes, said Briefing.com.Volatility in the US bond market, including a jump in yields over the last week, has rattled investors, prompting talk that US Treasuries could be losing their status as a safe haven asset.Trump’s reversal lifted the entire Dow index with Nvidia the biggest gainer at 18.7 percent. Both Apple and Boeing piled on more than 15 percent, while Disney, Goldman Sachs and Nike were among the names winning more than 10 percent.Earlier, European bourses suffered another down day as the European Union announced reprisals for steel and aluminum tariffs that entered force last month, targeting more than 20 billion euros ($22 billion) of US products including soybeans, motorcycles and beauty products.Most Asian equities markets fell back into the red. Tokyo closed down 3.9 percent.- Key figures around 2030 GMT -New York – Dow: UP 7.9 percent at 40,608.45 (close)New York – S&P 500: UP 9.5 percent at 55456.90 (close)New York – Nasdaq Composite: UP 12.2 percent at 17,124.97 (close)London – FTSE 100: DOWN 2.9 percent at 7,679.48 (close)Paris – CAC 40: DOWN 3.3 percent at 6,863.02 (close)Frankfurt – DAX: DOWN 3.0 percent at 19,670.88 (close)Tokyo – Nikkei 225: DOWN 3.9 percent at 31,714.03 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,264.49 (close)Shanghai – Composite: UP 1.3 percent at 3,186.81 (close)Euro/dollar: DOWN at $1.0948 from $1.0958 Pound/dollar: UP at $1.2810 from $1.2765Dollar/yen: DOWN at 147.82 yen from 146.27 yen on TuesdayEuro/pound: DOWN at 85.45 pence from 85.84 penceWest Texas Intermediate: UP 4.7 percent at $62.35 per barrelBrent North Sea Crude: UP 4.2 percent at $65.48 per barrelburs-jmb/aha

US President Donald Trump abruptly paused tariffs on most countries Wednesday after admitting they made the markets nervous, but doubled down on a brutal trade war with superpower rival China.Following days of market turmoil, Wall Street stocks saw historic surges in reaction to Trump’s announcement that he was halting a levy hike for almost all nations for 90 days.But Trump said he was raising tariffs on China to 125 percent because of a “lack of respect.”Trump denied that he had backtracked on the tariffs, telling reporters as he welcomed a group of motor racing champions at the White House that “you have to be flexible.””People were jumping a little bit out of line, they were getting yippy, a little bit afraid,” Trump said. “Yippy” is a term in sports to describe a loss of nerves.He said he had been watching the “very tricky” state of the crucial US bonds market before his decision. “I saw last night where people were getting a little queasy.”Trump however predicted that trade deals will be made with all countries, including China. “A deal’s going to be made with China. A deal’s going to be made with every one of them,” Trump said, adding however that China’s leaders “don’t quite know how to go about it.”Trump insisted that he “can’t imagine” increasing Chinese tariffs more then he has.- China duel -Markets have lost trillions of dollars in value since Trump’s announcement of sweeping global tariffs one week ago on what he called “Liberation Day.”Trump had imposed a 10 percent baseline tariffs on all countries which came into effect on Saturday, and higher rates on key trading partners like China and the European Union that he accused of cheating the United States, which activated on Wednesday.But as markets swayed yet again, Trump said in a surprise announcement on his Truth Social network that “I have authorized a 90 day PAUSE” on the higher tariffs, while the baseline 10 percent would remain.He said that he took the decision after more than 75 countries reached out to negotiate and did not retaliate.At the same time, Trump ramped up his confrontation with China.Beijing had raised tariffs on US imports to 84 percent earlier Wednesday — in retaliation for Trump himself ramping up duties on Chinese goods to 104 percent.China’s finance minister said that “the United States simply piles mistakes on top of mistakes.”The European Union had earlier launched its own counterattack, announcing measures targeting some US products from Tuesday in retaliation for American duties on global steel and aluminum exports.The 27-nation bloc will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.But the EU notably did not retaliate against the separate “Liberation Day” tariffs of 20 percent that came into effect on Wednesday.- ‘BE COOL!’ -Wall Street stocks rocketed on Trump’s pause announcement.The S&P 500 surged 9.5 percent to 5,456.90, snapping a brutal run of losses over the past week.European and Asian stock markets had earlier tumbled along with oil and the dollar.US bond yields had also risen amid a sharp sell-off  — a major economic red light as American sovereign government debt is normally seen as a safe haven for investors in troubled times.Before his pivot, Trump said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.”I’m telling you, these countries are calling us up kissing my ass,” Trump told a dinner with fellow Republicans on Tuesday night.Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.The tariffs have raised tensions between the world’s two biggest economies.China warned tourists on Wednesday to “fully assess the risks” before travelling to the United States.And US Defense Secretary Pete Hegseth then warned against Chinese “threats” as he visited Panama, whose canal is at the center of a row between Beijing and Washington.burs-arp/jgc

US President Donald Trump abruptly backed down Wednesday in his global trade war with a 90 day tariff pause for most countries — but slapped even more levies against China in what has become a brutal duel between the world’s two largest economies.Following days of global market turmoil, Wall Street stocks surged in reaction to Trump’s sudden announcement on his Truth Social network.”I have authorized a 90 day PAUSE” on higher tariffs that took effect on Wednesday, Trump said, adding that he took the decision after more than 75 countries had reached out to negotiate and did not retaliate against the United States.Only a flat rate of 10 percent tariffs on all countries that took effect on Saturday will remain in place. This marked a stunning reverse from often punishing levies that hit even many of the closest US allies.But Trump accused China of still “ripping off” his country.”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 percent, effective immediately,” Trump said.Trump had only hours earlier ramped up the duties on Chinese goods to a giant 104 percent. China then retaliated by rising tariffs on US imports to 84 percent.”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,” Trump said.US Treasury Secretary Scott Bessent insisted that Trump had not backtracked, saying: “This was his strategy all along, and you might even say that he goaded China into a bad position.”- ‘BE COOL!’ -The European Union had earlier launched its own counterattack, announcing measures targeting some US products from Tuesday in retaliation for American duties on global steel and aluminum exports.The 27-nation bloc, which Trump has accused of being created to “screw” the United States, will hit more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products.But the EU notably did not retaliate against the separate 20 percent US tariffs on all goods that came into effect a minute after midnight on Wednesday.Trump announced a week ago on what he called “Liberation Day” that he would impose a 10 percent baseline tariff on all countries, taking effect Saturday.Additional rates kicked in, starting Wednesday, for many individual economies including China and the EU, but also remote islands that barely trade with the United States — and in one case an uninhabited territory near Antarctica.Amid stock market panic, Trump earlier Wednesday urged Americans to “BE COOL!” and said that “Everything is going to work out well”Wall Street stocks rocketed on Trump’s pause announcement.Minutes later, the S&P 500 surged 6.0 percent to 5,281.44, snapping a brutal run of losses over the past week.European and Asian stock markets had earlier tumbled along with oil and the dollar as the confrontation escalated.US bond yields had also risen amid a sharp sell-off  — a major economic red light as sovereign government debt is normally seen as a safe haven for investors in troubled times.- ‘Kissing my ass’ -Before his pivot, Trump said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.”I’m telling you, these countries are calling us up kissing my ass,” Trump told a dinner with fellow Republicans on Tuesday night.But China doubled down. “The tariff escalation against China by the United States simply piles mistakes on top of mistakes,” the Chinese finance ministry said.Bessent earlier warned countries at a banking summit Wednesday that aligning with Beijing “would be cutting your own throat.”Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.The billionaire former property tycoon has particularly raged against China, accusing it of excess production and “dumping” inexpensive goods on other economies.China warned tourists on Wednesday to “fully assess the risks” before travelling to the United States.And US Defense Secretary Pete Hegseth then warned against Chinese “threats” as he visited Panama, whose canal is at the center of a row between Beijing and Washington.burs-dk

US Treasury Secretary Scott Bessent warned countries Wednesday against closer alignment with China on trade, as he defended President Donald Trump’s move to remake the world’s biggest economy through market-shaking tariffs.Bessent told a summit of bankers in Washington that economies potentially eyeing closer ties with Beijing over the US shift may want to think twice, saying “that would be cutting your own throat.””They just keep producing and producing, dumping and dumping, and it’s going somewhere,” he added.Bessent’s remarks came hours after Trump’s fresh tariffs on dozens of countries — including many US allies — kicked in, and shortly after Beijing unveiled equally steep counter tariffs.Trump’s latest action took new US tariffs on Chinese products this year to a staggering 104 percent, piling atop earlier duties.Shortly after the levies took effect, US government bonds saw a sharp sell-off, despite usually being seen as a safe financial asset in uncertain times, as investors priced in a likely US recession and sought to cover losses on equity markets.For now, Bessent said he is gearing up for talks with around 70 partners, adding that Trump could probably reach tariff deals with US allies.”And then we can approach China as a group,” he added.The Treasury chief stressed that Trump’s country-specific tariff levels are “a ceiling” if governments did not retaliate, suggesting Trump would hold off from further hikes if he did not face pushback.Bessent said China chose to escalate the situation.Despite financial market upheaval, he added that the US economy remained “very solid” and in “pretty good shape.”- ‘Main Street’s turn’ -Bessent also said the Treasury Department would work on reforms involving bank regulation.”Wall Street has grown wealthier than ever before, and it can continue to grow and do well,” he told the American Bankers Association’s Washington Summit.”But for the next four years, the Trump agenda is focused on Main Street. It’s Main Street’s turn,” Bessent added, referring to smaller businesses, investors and institutions.”For too long, financial policy has served large financial institutions, at the expense of smaller ones. No more,” the former hedge fund manager added.The Trump administration has been pursuing an economic policy, including tariffs, with a stated aim of transforming the US economy by boosting domestic industrial sectors and pushing for deregulation.Bessent flagged the need as well to ensure that Trump’s tax cuts from his first presidency did not expire, saying this would help support the economy.

Wall Street rose but European and Asian stock markets tumbled along with oil on Wednesday as President Donald Trump’s trade war cranked up a notch.US President Donald Trump’s sweeping tariffs against trading partners kicked in, triggering strong retaliation from China which slapped a higher 84-percent levy on US goods.The EU announced reprisals for steel and aluminium tariffs that entered force last month, targeting more than 20 billion euros ($22 billion) of US products including soybeans, motorcycles and beauty products.Growing fears of weakened demand sent oil prices to four-year lows, with international benchmark Brent North Sea crude dropping under $60.Frankfurt fell by three percent and Paris by 3.3 percent, as goods from the European Union now face a 20 percent tariff when entering the United States.London slumped 2.9 percent, with Britain having been hit with a 10 percent levy on Saturday.Most Asian equities markets fell back into the red — Tokyo closed down 3.9 percent.Wall Street’s main indices wobbled but were up in midday trading, with Trump urging calm after most indexes fell about 10 percent over the past week. “BE COOL! Everything is going to work out well. The USA will be bigger and better than ever before!” Trump posted on his Truth Social network.IG chief market analyst Chris Beauchamp said “volatility is a given from here,” with extended rallies possible even in a bear market.”Until we see some hard data on the impact of tariffs it will be impossible to say that the low” point has been reached, he added.Any hopes of a last minute roll-back on tariffs were dashed as the United States earlier hit China — its major trading partner — with tariffs now reaching 104 percent.”The world’s largest and second largest economies are now locked in a trade war, and neither nation seems willing to back down,” said Susannah Streeter, head of money and markets at Hargreaves Lansdown.Speculation that Beijing will unveil stimulus measures helped Shanghai and Hong Kong stocks buck the downward trend in Asian equities.Pharmaceutical firms took a heavy hit after Trump said he would be announcing a major levy on the sector. Europe’s most valuable company, weight-loss drug maker Novo Nordisk, and British pharmaceutical giant AstraZeneca both fell around seven percent.- Bond yields rise -“Perhaps even more alarmingly, US Treasury markets are also experiencing an incredibly aggressive selloff… adding to the evidence that they’re losing their traditional haven status,” said Jim Reid, managing director at Deutsche Bank.The sharp rise in yields on US government bonds triggered similar increases to borrowing costs in the UK and Japan.”It feels like no asset class has been spared as investors continue to price in a growing probability of a US recession,” Reid added.The rising yields may be an indication that investors need to sell bonds to cover losing positions in equity markets, which have fallen sharply in recent weeks. “When a few asset classes come under pressure, losses can pile up for investors and traders who are then forced to sell other investments including haven assets like government bonds,” said XTB research director Kathleen Brooks.Foreign exchange markets were similarly rattled on Wednesday — Beijing has allowed the yuan to weaken to a record low against the dollar, while the South Korean won also hit its weakest since 2009 during the global financial crisis.The dollar took a knock against the euro and the yen. – Key figures around 1530 GMT -New York – Dow: UP 0.4 percent at 37,806.08 pointsNew York – S&P 500: UP 0.6 percent at 5,010.71New York – Nasdaq Composite: UP 1.3 percent at 15,459.11London – FTSE 100: DOWN 2.9 percent at 7,679.48 (close)Paris – CAC 40: DOWN 3.3 percent at 6,863.02 (close)Frankfurt – DAX: DOWN 3.0 percent at 19,670.88 (close)Tokyo – Nikkei 225: DOWN 3.9 percent at 31,714.03 (close)Hong Kong – Hang Seng Index: UP 0.7 percent at 20,264.49 (close)Shanghai – Composite: UP 1.3 percent at 3,186.81 (close)Euro/dollar: UP at $1.1062 from $1.0959 Pound/dollar: UP at $1.2785 from $1.2766Dollar/yen: DOWN at 144.86 yen from 146.23 yen on TuesdayEuro/pound: UP at 86.52 pence from 85.78 penceWest Texas Intermediate: DOWN 4.5 percent at $56.93 per barrelBrent North Sea Crude: DOWN 4.2 percent at $60.19 per barrelburs-rl/gv