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US President Donald Trump’s delay of steeper tariffs may have won brief respite on Wall Street, but analysts say his actions — which hit China especially hard — already bring the average US effective tariff rate to its highest in over a century.Besides imposing sweeping new 10 percent tariffs on goods from most US trading partners, Trump has also unleashed steep duties on imports of steel, aluminum and autos since his White House return.But on Wednesday, he backed off even higher rates on dozens of economies, including the European Union and Asian manufacturing hub Vietnam, following a sharp sell-off in US government bond markets — though he doubled down on action against China.Many goods from the world’s second biggest economy now face levies of at least 145 percent — the total additional figure Trump has imposed this year.”The newly imposed tariffs now affect $2.4 trillion of US imports, or nearly 75 percent,” said Erica York of the Tax Foundation.”Compared to Trump’s first term, this is a massive escalation, as his first tariffs affected about $380 billion of US imports or 15 percent,” she told AFP.- ‘Highest since 1903′ -Researchers from the Budget Lab at Yale University estimate that “consumers face an overall average effective tariff rate of 27 percent, the highest since 1903.””This is only slightly different from where the effective rate was before the late-April 9 announcement,” they added.Even after accounting for consumption shifts, the average tariff rate will be 18.5 percent, the Budget Lab anticipates. This would be the highest since 1933.Thibault Denamiel, a fellow at the Center for Strategic and International Studies (CSIS), estimates that the US tariff rate was 2.4 percent in December 2024 — a figure which now stands north of 20 percent.”That’s mostly due to the fact that we still have a 125 percent tariff rate on China,” he said, referring to the latest duty Trump imposed on Chinese goods.The 125 percent tariff, which took effect Thursday, coupled with an earlier 20 percent over China’s alleged role in the fentanyl supply chain, putting Trump’s new tariffs targeting China this year to 145 percent.Even a much lower tariff would significantly impact the world’s biggest economy, Denamiel said, noting that China is the United States’ third most important trading partner.Analysts have also pointed out that Trump’s actions marked the biggest tariff increase since the Smoot-Hawley Act of 1930, which deepened the Great Depression.- Shrinking imports -Trump has claimed the United States was “taking in almost $2 billion a day” from tariffs.He has referred to them as a means to raise government revenue, boost the country’s industrial sectors and to pressure other governments on US priorities.But experts warn that prohibitively high duties on China will likely cause US imports from the country to contract.With Chinese tariffs reaching punitive levels, even conservative estimates suggest that China’s share of imports “should shrink dramatically,” said JPMorgan chief US economist Michael Feroli in a recent note.If this were to happen, York of the Tax Foundation added that imports from China would end up generating “very little tariff revenue.””Overall, we estimate the tariffs and announced retaliation will shrink US GDP by 1.0 percent,” she said.With Trump’s latest actions, Feroli expects “the drag from trade policy is likely to be somewhat less than before, and thus the prospect of a recession is a closer call.””However, we still think a contraction in real activity later this year is more likely than not,” he added.

Wall Street stocks resumed their free fall Thursday while the dollar stumbled as persistent concerns about the economic fallout from President Donald Trump’s trade wars put a fast end to the prior session’s surge.Major US indices spent the entire day in the red, disappointing traders who had been hoping to extend Wednesday’s rally following Trump’s pivot on tariffs.”There’s still a lot of apprehension,” said Tom Cahill of Ventura Wealth Management, who described the level of uncertainty now permeating markets as “nearly unprecedented for my 30-year career.”The broad-based S&P 500 finished down 3.5 percent at 5,268.05. The index had soared 9.5 percent on Wednesday.The dreary US session also put a damper on the day’s buoyant rounds in Europe and Asia, with Tokyo surging 9.1 percent and Frankfurt winning 4.5 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 gains in Asia and Europe followed Wednesday’s historic rally in New York following Trump’s decision to pause for 90 days many of his most onerous tariffs on trading partners, while doubling down on levies on China.US stocks wiped out trillions of dollars in value in the sessions after President Trump’s “Liberation Day” tariff announcement before the president’s reversal on Wednesday.But by Thursday, investors realized that Trump’s tariff pause “is not enough to get people back in this market,” said Peter Tuchman, senior floor trader at TradeMas Securities.  “It’s still no clarity,” Tuchman said. “We’re still in the midst of a major trade war with China, and so where do we go from here?”Data showed that US consumer inflation contracted 0.1 percent from a month earlier in a reading that was lower than analyst expectations.But traders have been unnerved by the massive reversals in Trump’s policies, resulting in uncertainty that economists warn can paralyze consumers and businesses.Oil prices tumbled on fears slowing growth would hit demand, while haven assets like gold and the Swiss franc benefitted from the search for safety.The dollar, meanwhile, slid more than two percent against the euro, evidence of the diminishing outlook for the US economy.”When you talk about rewriting the rules of economics, the result is going to be weaker growth in the United States,” said Adam Button on ForexLive. “The market is looking ahead to a period where ultimately the US is going to have a terrible policy of slow growth and high inflation.”- Key figures around 2050 GMT -New York – Dow: DOWN 2.5 percent at 39,593.66 (close)New York – S&P 500: DOWN 3.5 percent at 5,268.05 (close)New York – Nasdaq: DOWN 4.3 percent at 16,387.31 (close)London – FTSE 100: UP 3.0 percent at 7,913.25 (close)Paris – CAC 40: UP 3.8 percent at 7,126.02 (close)Frankfurt – DAX: UP 4.5 percent at 20,562.73 (close)Tokyo – Nikkei 225: UP 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)Euro/dollar: UP at $1.1183 from $1.0949Dollar/yen: DOWN at 144.79 yen from 147.76 yen on WednesdayPound/dollar: UP at $1.2954 from $1.2820Euro/pound: UP at 86.33 pence from 85.43 penceWest Texas Intermediate: DOWN 3.7 percent at $60.07 per barrelBrent North Sea Crude: DOWN 3.3 percent at $63.33 per barrel

President Donald Trump claimed victory over Europe in the US tariffs war but acknowledged a “cost” to his surging trade offensive against superpower rival China as markets plunged again Thursday.Trump sought a victory lap at a White House cabinet meeting, saying the European Union had backed off from imposing retaliatory tariffs because of his tough stance on China.”They were very smart. They were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, ‘We’re going to hold back a little bit,'” he said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”Treasury Secretary Scott Bessent was upbeat, telling reporters that “I don’t see anything unusual today,” as he touted better than expected US inflation numbers and other economic indicators.But major indices spent the entire day in the red, with the broad-based S&P 500 finishing down 3.5 percent after soaring 9.5 percent on Wednesday.The Dow Jones Industrial Average shed 2.5 percent, while the tech-rich Nasdaq slumped 4.3 percent.Oil and the dollar also slid on fears of a global slowdown in economic activity, while safe-haven asset gold hit a new record.Thursday’s market losses followed giddy gains on Wednesday in the aftermath of a stunning Trump climbdown, where he maintained a 10 percent blanket tariff on most countries but paused plans for tariffs of 20 percent on the EU and even higher levies on multiple other trade partners.The dialing back of the planned global trade war left most of the focus on China, the world’s number two economy after the United States.The White House on Thursday clarified that levies on Chinese imports are now at a staggering total of 145 percent — not the previously reported 125 percent.This was because the latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.- Relief -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.Howard Lutnick, his commerce secretary, was bullish, posting on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”Amid questions over how far Trump is ready to push, the European Union welcomed the US president’s partial row-back on his original threat to impose 20 percent tariffs against the bloc.The 27-nation grouping responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ ($22.4 billion) worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Trump likewise warned that the partial thaw could return to deep freeze after a 90-day truce period.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump brushed off Beijing’s clampdown on US films, saying, “I think I’ve heard of worse things.”burs-sms-tgb/md

The US-China trade war intensified Thursday, sending the global economy into unknown territory and dampening relief after President Donald Trump’s earlier climbdown from a wider tariff onslaught against the rest of the world.The White House clarified that Trump’s big hike in tariffs on China announced 24 hours earlier had actually taken his total levies this year on imports from the world’s second biggest economy to a staggering total of 145 percent — not the previously reported 125 percent.This was because latest tariff hike comes on top of a 20 percent tariff already imposed earlier. China has retaliated with levies of 84 percent on US imports.The superpower confrontation threw a deep shadow over jubilation that Trump was retreating from threats to impose punishing tariffs on dozens of other countries — everywhere from European Union allies to Asian manufacturing hubs like Vietnam and even tiny, remote ocean islands.Trump maintained a blanket 10 percent tariff on most countries. However, his retreat from more damaging levies against European countries prompted the EU to pause plans for its own retaliation.Amid relief, Asian and European stock markets rocketed, with Tokyo closing 9.1 percent higher.But realization that Trump’s splashy about-face on Wednesday masked the reality of a surging trade war with China dampened spirits.The Dow Jones in New York fell more than three percent and the S&P dropped 4.5 percent in morning trading. Gold prices hit a record high as the US dollar crumbled.- EU wants negotiations -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States.Howard Lutnick, his commerce secretary, was bullish, posting on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”Amid questions over how far Trump is ready to push, the European Union welcomed the US president’s partial row-back on his original threat to impose 20 percent tariffs against the bloc.The 27-nation grouping responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.burs-sms/bgs

Wall Street shares fell Thursday as a rally faded over lingering concerns about the economic fallout from President Donald Trump’s trade war despite his U-turn on steep new tariffs.A larger-than-expected drop in US consumer inflation in March added to the pessimistic outlook, as it suggested that uncertainty over Trump’s tariff plans has already taken a toll on the world’s largest economy.Investors in response sold off the dollar, which had already taken a hit from the trade war worries, even though slowing inflation would give the Federal Reserve more room to cut interest rates to spur growth.”Is inflation moving sustainably lower or did businesses and consumers pull in the reins as they brace for an economic slowdown?” said Bret Kenwell, US investment analyst at the eToro trading platform.”Getting lower inflation due to a material drop in economic activity — and thereby jeopardising the economy — isn’t the best route to take,” he added.Wall Street indices on Wednesday had posted their biggest one-day gains since 2008 after Trump announced the tariff pause, which had sent stocks lower around the globe in recent sessions.Asian and European markets staged their own rallies on Thursday.The shock decision to delay bigger levies on goods from scores of countries by 90 days drove the European Union to put its counter-tariffs on hold.The trade war fears had also pummelled US Treasuries — normally considered the safest option in times of crisis — a sign of how nervous investors had become.”The bottom line is that the tariff narrative still remains too volatile for comfort, and markets are searching for equilibrium in a sea of uncertainty,” said Fawad Razaqzada, a market analyst at StoneX.Trump nonetheless kept a baseline 10 percent tariff intact and ramped up his trade war with Beijing by hiking duties Chinese goods to 125 percent after facing strong retaliation.But Chinese markets still benefitted from the relief rally across Asia and Europe on Thursday, also gaining support from optimism that Beijing will unveil fresh stimulus measures to support its economy.Hong Kong rose more than two percent — a third day of gains after collapsing more than 13 percent on Monday, its worst trading day since the Asian financial crisis in 1997. “Crucially, we are currently still on course for a disorderly economic decoupling between the world’s two largest economies, with no immediate signs of either US or China backing down,” said Jim Reid, an analyst at Deutsche Bank. US Treasury yields have edged down after a successful auction of $38 billion in notes.That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.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.Gold climbed two percent to $3,140 an ounce — closing in on its record touched last month — thanks to the weaker dollar and the metal’s safe-haven status. Oil prices dropped after bouncing more than four percent Wednesday, again under pressure from concerns about the global economy and its impact on demand.- Key figures around 1350 GMT -New York – Dow: DOWN 1.8 percent at 39,878.20New York – S&P 500: DOWN 2.1 percent at 5,339.21New York – Nasdaq: DOWN 2.8 percent at 16,641.78London – FTSE 100: UP 3.9 percent at 7,979.04 pointsParis – CAC 40: UP 4.9 percent at 7,200.24Frankfurt – DAX: UP 5.3 percent at 20,704.23 Tokyo – Nikkei 225: UP 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)Euro/dollar: UP at $1.1130 from $1.0948 Dollar/yen: DOWN at 144.80 yen from 147.82 yen on WednesdayPound/dollar: UP at $1.2928 from $1.2810Euro/pound: UP at 86.12 pence from 85.45 penceWest Texas Intermediate: DOWN 4.5 percent at $59.51 per barrelBrent North Sea Crude: DOWN 4.2 percent at $62.73 per barrel

The EU paused plans for retaliatory tariffs on US goods Thursday after President Donald Trump abruptly suspended higher US duties on the bloc and other countries, leaving China in the crosshairs of his trade war.Trump’s about-face on Wednesday triggered a massive market rebound but Wall Street’s rally fizzled on Thursday and the dollar slumped, as investors remain on edge over the outlook for the world economy.The US president halted steep tariffs on scores of nations for 90 days. But he kept a global baseline tariff of 10 percent intact and punished Beijing for retaliating by slapping a 125 percent duty on its goods.The European Union, which had faced a 20 percent tariff, welcomed Trump’s U-turn, saying it was an “important step towards stabilising the global economy”.The 27-nation bloc responded with its own olive branch, suspending for 90 days tariffs on 20 billion euros’ worth of US goods that had been greenlit in retaliation to duties on steel and aluminium.”We want to give negotiations a chance,” EU chief Ursula von der Leyen said in a statement.She warned, however, that “if negotiations are not satisfactory, our countermeasures will kick in” and that all options remain on the table.Other countries are also lining up to bargain.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.- China hits Hollywood -But there was no let-up in Trump’s trade war with China, which said the US tariffs policy “goes against the will of the world and goes against the whole world”.The heightened tariffs against China took effect at the same time as retaliatory levies of 84 percent imposed by Beijing on US imports.Beijing added Hollywood to its target list on Thursday as it announced it would “moderately reduce” the number of US films it imports.But China’s commerce ministry said the door remained open for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump has 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 at the White House. However,  China’s leaders “don’t quite know how to go about it”.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.- ‘A little queasy’ -Markets have been on a roller-coaster ride since Trump announced his tariff plans last week, with the 10 percent global levy taking effect on Saturday and the higher ones on Wednesday before the pause.Investors also began to dump US government bonds — a major economic red light since American sovereign debt is normally seen as a haven for investors in troubled times.”I saw last night where people were getting a little queasy,” Trump said Wednesday, though he denied that he backtracked on the tariffs.Wall Street’s main index were all down more than two percent as trading resumed on Thursday, a day after the tech-heavy Nasdaq soared 12 percent higher and the S&P 500 surged 9.5 percent.Asia and Europe caught up on Thursday, with Tokyo closing 9.1 percent higher as the Japanese government welcomed the tariff pause but demanded that other levies be halted.Paris and Frankfurt were up more than five percent in afternoon deals while London rose 4.5 percent.”This will go down in American history as the greatest trade negotiating day we have ever had,” said Trump’s senior trade advisor Peter Navarro.”We’re in a beautiful position for the next 90 days” to seek trade deals with partners, he told ABC News, adding that more than 75 have sought to negotiate with Washington.burs-oho-lth/phz

As stock prices flashed across a huge screen at a bustling intersection in China’s business hub Shanghai, finance workers shared their concerns after getting front-row seats to the global market turmoil wreaked by Donald Trump this week.After equities tanked at the beginning of the week, the US president on Wednesday paused the sweeping tariffs he had introduced on most countries. But he increased levies on China to 125 percent, citing a “lack of respect” over Beijing’s introduction of retaliatory duties. At lunchtime on Thursday in central Shanghai, the news didn’t appear to be disrupting people’s enjoyment of a warm spring day — but asked whether it had been an interesting week at work, a woman who gave her name as Catherine laughed. “Every night Trump sends out a social media post, then the market goes up or down… us finance professionals are getting first-hand experience of this,” she said, standing in front of a bronze-coloured statue of a bull charging.Shanghai lost over seven percent on Monday, though it has subsequently clawed back some of those losses. “We think (Trump’s) words and deeds have attacked all our financial systems, especially the global stock market,” a fellow worker surnamed Zhang told AFP. “He is a hugely unpredictable, uncertain factor, and this is a very big risk point from an investment perspective.”- ‘Just emotional rage’ -The Chinese government on Thursday urged the United States to meet it “halfway”, but the stand-off currently shows no sign of de-escalating. Catherine said that at this point the exact figure of the constantly rising tariff percentage made little difference. “As soon as (Trump) put 60 percent on, the trade relationship is over, so if he puts 100, over 100 percent on, that’s just another number, it’s just him expressing his emotional rage,” she said. Zhang said that although she hadn’t noticed any effect on her own life yet, the whole economy would eventually be impacted because of the importance of foreign trade to China’s growth. Overseas shipments represented a rare bright spot in a sluggish economy last year, with the United States as the top single country buyer of Chinese goods. “I hope there will be a mutual rejection of tariffs, that it can be negotiated as soon as possible, and that the negotiations will end well,” Zhang said.Semi-retired Arthur Zheng, who was taking his dog Charlie for a stroll in a pram, said he thought China could ultimately thrive on the competition. “If he raises (tariffs), we will also raise them… and everyone’s costs will get higher and higher,” he said. “But I think for everyday Chinese people… most things are not imported,” he said, gesturing at the pink floral shirt his dog was wearing. “It’s all domestically produced, we’re self-sufficient.” The 57-year-old held no animosity for the US president. “I think this guy is a hero,” he said animatedly. “The world needs someone to stir things up like this. But I hope he’s able to guide things in a positive direction — you don’t want him to stir and stir, stir the whole world up and then just stop at that, that’s not ok.”

Stocks markets rocketed and the dollar fell Thursday after Donald Trump paused steep tariffs on most countries, while investors appeared to brush off the US president’s decision to ramp up duties on China. Trump’s shock decision Wednesday to delay most of the new tariffs by 90 days drove the European Union to put its counter-tariffs on hold, boosting European and Asian indices.Trump’s announcement came after European stock markets had closed down by around three percent Wednesday, but in time to send Wall Street soaring.Trump back tracked on the punishing tariffs after global equities plummeted and US Treasuries — considered the safest option in times of crisis — showed signs of cracking.But he kept a baseline 10 percent tariff intact and ramped up his trade war with Beijing by hiking duties Chinese goods to 125 percent after facing strong retaliation.Global stock markets soared in response. Paris and Frankfurt cruised almost six percent higher in afternoon deals Thursday while London advanced around 4.5 percent.In Asia, Tokyo surged nine percent.While the tariffs pause was welcomed by investors, “the lack of long-term clarity may become more of an issue as time goes on”, said AJ Bell investment director Russ Mould.Chinese markets also gained support Thursday from optimism that Beijing will unveil fresh stimulus measures to support its economy.Hong Kong rose more than two percent — a third day of gains after collapsing more than 13 percent on Monday, its worst trading day since the Asian financial crisis in 1997. Shanghai ended up more than one percent Thursday.”Crucially, we are currently still on course for a disorderly economic decoupling between the world’s two largest economies, with no immediate signs of either US or China backing down,” said Jim Reid, an analyst at Deutsche Bank. US Treasury yields have edged down after a successful auction of $38 billion in notes.That eased pressure on the bond market, which had fanned worries that investors were losing confidence in the United States.Elsewhere in Asia, Seoul, Singapore, Jakarta, Sydney, Saigon and Bangkok climbed between four and 6.6 percent.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.Europe’s banking sector soared, with Barclays and Deutsche Bank up 10 percent while French banks BNP Paribas and Societe Generale gained around eight percent.Gold climbed almost three percent to $3,120 an ounce — around $50 short of its record touched last month — thanks to the weaker dollar and the metal’s safe-haven status. Trump’s trade war is causing a headache for the Federal Reserve as it weighs cutting interest rates to protect the economy, or holding them steady to ward off the inflation many analysts say tariffs will fuel.Investors are awaiting data later in the day that is expected to show US inflation slowed in March. Oil prices dropped after bouncing more than four percent Wednesday, though they remain under pressure amid concerns about the global economy and its impact on demand.- Key figures around 1100 GMT -London – FTSE 100: UP 4.6 percent at 8,032.11 pointsParis – CAC 40: UP 5.7 percent at 7,252.45Frankfurt – DAX: UP 5.7 percent at 20,800.69 Tokyo – Nikkei 225: UP 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)New York – Dow: UP 7.9 percent at 40,608.45 (close)Dollar/yen: DOWN at 145.57 yen from 147.82 yen on WednesdayEuro/dollar: UP at $1.1077 from $1.0948 Pound/dollar: UP at $1.2906 from $1.2810Euro/pound: UP at 85.80 pence from 85.45 penceWest Texas Intermediate: DOWN 2.7 percent at $60.70 per barrelBrent North Sea Crude: DOWN 2.6 percent at $63.78 per barrel

Stocks rocketed Thursday as a relief rally spread through markets after Donald Trump paused crippling tariffs on US partners, with Chinese investors even brushing off his decision to ramp up duties on Beijing to 125 percent.The across-the-board gains tracked a blistering performance on Wall Street as the US president said he would delay for 90 days measures announced last week that set off a firestorm on trading floors and sparked global recession fears.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.China’s own 84 percent retaliatory measures kicked in at 0401 GMT Thursday, later saying that the United States “goes against the whole world” with the measures and called on Washington to “meet halfway”. Trump made the decision to delay because investors were “jumping a little bit out of line”, he said, after markets collapsed and US Treasuries — considered the safest option in times of crisis — showed signs of cracking.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”.And his top trade advisor Peter Navarro said: “This will go down in American history as the greatest trade negotiating day we have ever had.”We’re in a beautiful position for the next 90 days, we’ve got over 75 countries that are going to come in and negotiate with us and what they’re going to have to do, without fail, is they’re going to have to lower their non-tariff barriers.”Trump’s shock announcement on his Truth Social network sparked a buying frenzy as Asian and European investors chased beaten-down stocks.”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.”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’.”Tokyo’s Nikkei surged more than nine percent, while Taipei’s 9.3 percent gain was its best rise on record — after Monday’s 9.7 percent drop represented its worst fall.- ‘Fear to euphoria’ -Hong Kong rallied more than two 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 China will unveil fresh stimulus to support its economy.Seoul, Singapore, Jakarta, Sydney, Saigon and Bangkok climbed between four and 6.6 percent. Manila and Wellington were also well in the positive territory.In early trade, Paris and Frankfurt cruised more than six percent higher and London rallied more than four percent.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.Gold surged almost three percent around $3,120 — around $50 short of its record touched last month — thanks to the weaker dollar and as the uncertainty saw investors rush into the safe haven. Chihiro Ota, at SMBC Nikko Securities, said: “What happens now? If the US takes hardline stance (in negotiations), then the market would be disappointed. If it turns out that they can engage in talks, then it may create a room for (an upswing).”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 investors were losing confidence in the United States.However, observers warn the China-US standoff could mark a step towards a disengagement between the world’s top two economies.”The escalation of the trade war between the US and China suggests that a full trade decoupling is increasingly likely,” said Mali Chivakul, emerging markets economist at J. Safra Sarasin bank. “Even if we may see a de-escalation later, a decoupling could still be the result.”Trump’s trade war is also causing a headache for the Federal Reserve as it weighs cutting interest rates to protect the economy or holding them to ward off the inflation many say tariffs will fuel.Minutes from its March meeting, released Wednesday, showed members felt they “may face difficult trade-offs if inflation proved to be more persistent while the outlook for growth and employment weakened”.Oil prices dropped after bouncing more than four percent Wednesday, though they remain under pressure amid concerns about the global economy and its impact on demand.- Key figures around 0810 GMT -Tokyo – Nikkei 225: 9.1 percent at 34,609.00 (close)Hong Kong – Hang Seng Index: UP 2.1 percent at 20,681.78 (close)Shanghai – Composite: UP 1.2 percent at 3,223.64 (close)London – FTSE 100: UP 4.7 percent at 8,042.33Dollar/yen: DOWN at 146.50 yen from 147.82 yen on WednesdayEuro/dollar: UP at $1.1012 from $1.0948 Pound/dollar: UP at $1.2870 from $1.2810Euro/pound: UP at 85.55 pence from 85.45 penceWest Texas Intermediate: DOWN 2.0 percent at $61.11 per barrelBrent North Sea Crude: DOWN 2.1 percent at $64.12 per barrelNew York – Dow: UP 7.9 percent at 40,608.45 (close)

China on Thursday urged the United States to meet it “halfway” as US President Donald Trump imposed more levies on Chinese goods but, in a huge relief to global markets, paused tariffs on other countries.Stocks on Wall Street, across Asia and Europe rocketed 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 from an earlier 104 percent, the latest salvo in an escalating standoff between the world’s two largest economies.The heightened tariffs against China took effect at the same time Thursday as retaliatory levies of 84 percent slapped on by Beijing on US imports.China’s commerce ministry warned the tariffs risked “severely” impacting the global economy, but stressed that “the door to dialogue is open”.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Beijing’s foreign ministry also warned the tariff hikes were going “against the whole world”.Trump has 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 at the White House. However, China’s leaders “don’t quite know how to go about it,” he added.As Beijing weighs the costs of further escalation, Bloomberg reported that its top leadership is meeting Thursday to hash out plans for additional stimulus to boost its fragile economy — already ailing before the trade war.- ‘A little queasy’ -Markets have been on a rollercoaster ride since Trump imposed a 10-percent baseline tariff on all countries and higher rates on key trading partners that he accused of cheating the United States, which activated on Wednesday.But as markets swayed yet again, Trump said in a surprise announcement that he had authorised a 90 day pause on the higher tariffs — although the baseline 10-percent rate remains.Trump denied that he backtracked on the tariffs, saying he remains flexible.”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.”What a day, but more great days coming!!!” he wrote on his Truth Social network later on Wednesday.Trump’s senior trade advisor Peter Navarro said “this will go down in American history as the greatest trade negotiating day we have ever had.””We’re in a beautiful position for the next 90 days” to seek trade deals with partners, he told ABC News, adding more than 75 have sought to negotiate with Washington.- China duel -Japan — which had been slapped with 24 percent under the so-called reciprocal tariffs — said it welcomed the pause but still “strongly” demanded that Washington reconsider other levies on its steel and auto exports.The 10-member Association of Southeast Asian Nations, for which the United States is their main export market, said on Thursday they would not impose any “retaliatory measures” and were ready for dialogue.And Vietnam said it and the United States had agreed to start negotiations on a reciprocal trade agreement.The European Union earlier launched its own counterattack, announcing measures targeting more than 20 billion euros’ worth of US products.- ‘Kissing my ass’ -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 also rallied Thursday, with Hong Kong, Tokyo, Australia, Indonesia and Singapore sharply higher. Taipei closed up a record 9.3 percent. Stocks in Chinese economic powerhouse Shanghai were also up, despite Trump’s decision to further hike tariffs.And in Europe, markets rebounded sharply on the pause.The EU’s chief Ursula von der Leyen on Thursday welcomed Trump’s decision to pause the tariff increases as an “important step towards stabilising the global economy”.Trump has said world leaders were rushing to negotiate “tailored” deals with the United States, with Japan and South Korea among those sending delegations to Washington.”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.burs-oho/hmn