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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

US President Donald Trump’s trade war boiled over on Wednesday as China and the European Union adopted retaliatory tariffs against US goods, fuelling fresh market volatility.Trump’s latest salvo of tariffs came into effect on dozens of trading partners earlier Wednesday.”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 platform following the Chinese and EU counterattacks.In one of the most serious tests of China-US ties in recent decades, Trump ramped up the duties he had originally prepared for Chinese goods, finally raising them to 104 percent after Beijing said it would retaliate.Beijing initially planned to impose a 34 percent tariff on imports of US products from 1601 GMT on Wednesday, but the finance ministry said it would now raise the toll to 84 percent after Trump hiked his tariff.”The tariff escalation against China by the United States simply piles mistakes on top of mistakes (and) severely infringes on China’s legitimate rights and interests,” the ministry said.Washington’s moves “severely damage the multilateral rules-based trade system”, it added.China also said it would blacklist six American artificial intelligence firms, including Shield AI and Sierra Nevada Corp.The European Union announced measures targeting more than 20 billion euros’ worth of US products, including soybeans, motorcycles and beauty products, starting April 15.The levies are in retaliation for US duties on global steel and aluminium exports imposed last month.”These countermeasures can be suspended at any time, should the US agree to a fair and balanced negotiated outcome,” the European Commission said after EU member states approved the measures. “The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy,” it added.The EU is still working on a response to the 20 percent levy that took effect on Wednesday.- ‘Cutting your own throat’ -US officials have warned nations against retaliating.”I think what a lot of people are missing here is that the levels that were put out last Wednesday are a ceiling, if you don’t retaliate,” US Treasury Secretary Scott Bessent said at a US banking summit Wednesday.Bessent warned countries that aligning with Beijing “would be cutting your own throat” as China is guilty of excess production and “dumping” inexpensive goods on other economies.Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.”This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing,” Trump posted on Truth Social, adding “DON’T WAIT, DO IT NOW!”But many business experts and economists question how quickly — if ever — this could take place and warn it could reignite inflation.- Markets mixed -The escalating trade war has wiped off trillions of dollars in market value since last week as investors fear that the trade war will spark a recession.After some respite on Tuesday, stock markets were rattled on Wednesday.Wall Street’s main indexes were up in early morning deals while European stock markets were down around three percent in afternoon trading.Tokyo’s Nikkei index closed almost four percent lower.The dollar fell against major currencies while oil prices fell below $60 a barrel, their lowest level in four years.Government bond yields — essentially the interest countries pay to borrow money — rose in the United States, Japan and Britain, among other countries.The Bank of England warned of risks to “UK financial stability” from increased geopolitical tensions, including the fallout from the US tariffs.Italy is preparing to cut its 2025 growth forecast in half, to 0.6 percent from 1.2, a government source said, while Spain is also set to downgrade its outlook.Trump has said his government was working on “tailored deals” with trading partners, with the White House saying it would prioritise allies such as Japan and South Korea, which were hit with tariffs of 24 percent and 25 percent, respectively.His top trade official, Jamieson Greer, told the Senate that Argentina, Vietnam and Israel were among those who had offered to reduce their tariffs. Trump told a dinner with fellow Republicans on Tuesday night that countries were “dying” to make a deal.”I’m telling you, these countries are calling us up kissing my ass,” he said.Trump also said the United States would announce a major tariff on pharmaceuticals “very shortly”, prompting a sell-off in shares of pharmaceutical companies.burs-oho-lth/js

Indian-owned steelmaking giant Tata Steel announced Wednesday it was slashing around 1,600 of the 9,200 jobs at its plant in the Netherlands, sparking a furious reaction from union leaders.Tata blamed weak demand in Europe and global trade tensions, as US President Donald Trump’s punishing tariffs on dozens of countries — including European Union member states — took effect.The tariffs are part of an intensifying trade war that has sparked fresh market panic.”The challenging demand conditions in Europe driven by geo-political developments, trade and supply chain disruptions and escalating energy costs have affected the operating costs and financial performance,” said Tata, based in IJmuiden near Amsterdam.The cuts would fall on management and support roles, Tata added.”Tata Steel remains committed to ensuring that its Netherlands operation achieve their potential of being one of the most competitive, successful and efficient in Europe,” it said.  Dutch unions condemned the decision at the plant, which employs 9,200 workers. In all, Tata employs 11,500 people in The Netherlands.”This was a bolt out of the blue,” said Hans Korver, a negotiator with De Unie, a union that represents mainly white-collar employees at the plant.”We were particularly surprised by the scale of the cuts,” he told AFP.- ‘Chaos’ -The nation’s largest umbrella union federation FNV, said it “did not understand” Tata’s restructuring plan.”Even now there are no detailed plans. They only thing created now is chaos,” it said in a statement.Tata, in its statement, said “over the following weeks, an effective and comprehensive consultation process will be run on the proposed changes”.But the FNV said it would be discussing the announcement with its members on Monday to decide on further steps, with strike action “not excluded”.Tata Steel in November 2023 announced it was scrapping 800 jobs but in reality few jobs were slashed after the announcement.The plant has been facing hefty fines because of harmful emissions in the area.Dutch residents and the health authorities have accused it of being the main source of air, soil and water pollution in the area and of causing illnesses.A pollution watchdog last week gave Tata a few more weeks to ensure that emissions complied to legal norms, or face fines running into millions of euros, Dutch media reports said.Tata, in its statement Wednesday, said it was working towards more environmentally friendly and sustainable methods, such as changing from old blast furnaces to electric arc furnaces.It planned to replace one blast furnace by the end of the decade, which it said would cut five million tonnes a year in carbon dioxide emissions.

China announced Wednesday massive retaliatory tariffs on US goods, sharply escalating a trade war started by President Donald Trump and fuelling fresh panic in global markets.Trump’s latest salvo of tariffs came into effect on dozens of trading partners earlier Wednesday, including punishing duties of 104 percent on imports of Chinese products.Beijing originally planned to respond with a 34 percent tariff on imports of US products from 1601 GMT Wednesday, but the finance ministry said it would now raise the toll to 84 percent after Trump dramatically hiked his own duties on imports from China.”The tariff escalation against China by the United States simply piles mistakes on top of mistakes (and) severely infringes on China’s legitimate rights and interests,” the ministry said.Washington’s moves “severely damage the multilateral rules-based trade system”, it added.In a separate statement, Beijing’s commerce ministry said it would blacklist six American artificial intelligence firms, including Shield AI and Sierra Nevada Corp.Trump did not immediately react to the Chinese counterattack but he called on companies to start relocating to the United States to avoid tariffs.”This is a GREAT time to move your COMPANY into the United States of America, like Apple, and so many others, in record numbers, are doing,” the US president said on his Truth Social platform. He urged: “DON’T WAIT, DO IT NOW!”Trump believes his policy will revive America’s lost manufacturing base by forcing companies to relocate to the United States.But many business experts and economists question how quickly — if ever — this can take place and warn it could reignite inflation.- Recession fears -The escalating trade war has wiped off trillions of dollars in market value since last week as investors fear that the trade war will spark a recession.After some respite on Tuesday, stock markets were in panic mode again, with Tokyo’s Nikkei index closing almost four percent lower on Wednesday.Paris and Frankfurt sank four percent in afternoon trading while London was down 3.5 percent. US equities were expected to open with more losses.The Bank of England warned of risks to “UK financial stability” from increased geopolitical tensions, including the fallout from the US tariffs.Italy is preparing to cut its 2025 growth forecast in half, to 0.6 percent from 1.2, a government source said, while Spain is also set to downgrade its outlook.Central banks in India and New Zealand cut interest rates to boost their economies in the face of tariffs.Oil prices fell below $60 a barrel, their lowest level in four years.Government bond yields — essentially the interest countries pay to borrow money — rose in the United States, Japan and Britain, among other countries.- Drug makers next? -Trump has said his government was working on “tailored deals” with trading partners, with the White House saying it would prioritise allies such as Japan and South Korea, which were hit with tariffs of 24 percent and 25 percent, respectively.His top trade official, Jamieson Greer, told the Senate that Argentina, Vietnam and Israel were among those who had offered to reduce their tariffs. Vietnamese goods were hit with one of the highest tariffs, at 46 percent. Trump told a dinner with fellow Republicans on Tuesday night that countries were “dying” to make a deal.”I’m telling you, these countries are calling us up kissing my ass,” he said.The European Union, whose goods were hit with a 20 percent tariff, is working on response that could be presented next week.A Chinese government white paper released on Wednesday emphasised that the Beijing and Washington could still resolve their differences “through equal-footed dialogue and mutually beneficial cooperation”.Trump on Tuesday said the United States was “taking in almost $2 billion a day” from global tariffs.He also said the United States would announce a major tariff on pharmaceuticals “very shortly”, prompting a sell-off in shares of pharmaceutical companies.Residents in Beijing expressed fears over the escalating trade war.”I hope that everyone can sit down and reconcile and talk, and then put things out step by step, rather than irrationally escalate them,” Yu Yan, a lawyer, told AFP.In the United States, consumers also voiced worries over rising prices.At a supermarket in New York, mother-of-two Anastasia Nevin told AFP she was “just trying to get by. It’s tough”, adding that she was in “survival mode”.burs-oho-lth/js

President Donald Trump’s punishing tariffs on countries around the world, including a 104 percent increase in duties on China, bear the fingerprint of Peter Navarro, a Harvard-trained economist who has long warned against a rising Beijing.Saying Washington’s trade deficit was a sign of unfair competition, Trump announced blanket 10 percent tariffs on countries and territories around the world last week, including islands inhabited only by penguins.And nearly 60 economies face higher duties, including the over 100 percent tax on Chinese imports that took effect Wednesday after tit-for-tat tariffs between Beijing and Washington.Navarro has advised Trump since before the 2016 presidential election, when candidate Trump vowed to crack down on unfair trade practices he argued have destroyed American jobs and left once-mighty US cities a shadow of their former selves.The economist’s works include the documentary film, “Death by China: how America lost its manufacturing base,” connected to his 2011 book showing China as a serial trade cheater, subsidizing export-oriented industries and manipulating its currency. The consequences, including a harsh deindustrialization of the United States, demand a tough response to China, or the “Dragon,” Navarro argued. Navarro has since emerged as one of the president’s most loyal aides, a controversial figure who defended Trump’s campaign to deny the results of the 2020 presidential election that put Joe Biden in the White House.- Jail term -Navarro, who will be 76 in July, has faced censure and ridicule from his political opponents and fellow Republicans alike, as a backlash builds against Trump’s tariffs within his own party.The former university lecturer served a four-month sentence in prison last year for actions stemming from the former president’s efforts to overturn the results of the 2020 election.Navarro was convicted of contempt of Congress for refusing to appear for a deposition and refusing to supply documents to the committee investigating the January 6, 2021 attack on the US Capitol by Trump’s supporters.And in 2020, Navarro clashed with top health expert Anthony Fauci over the Covid-19 pandemic, with the Trump administration official defending the use of an anti-malarial drug against the coronavirus.Billionaire and major Trump backer Elon Musk called Navarro “dumber than a sack of bricks” on Tuesday after the trade advisor said the Tesla boss relies mostly on imported parts to make his electric cars.Musk also dubbed him “Peter Retarrdo” and said Navarro “should ask the fake expert he invented, Ron Vara” — referring to a fictional pundit Navarro quoted in a series of books and a policy memo, using an anagram of his own name.Earlier, Senator Ted Cruz — a staunch Trump loyalist — warned that the United States could be on its way to an economic “bloodbath” after markets crashed on the back of Trump’s tariff announcement.- ‘Visionary’ -Navarro was named to Trump’s team soon after the 2016 election and quickly labeled a “visionary” by the American president. But his appointment spurred immediate unease at Beijing and many observers have seen his standing within the Trump universe as a proxy for the administration’s stance on trade.Under Navarro’s guidance, Trump threatened to pull out of the landmark North American Free Trade Agreement during his first term and demanded renegotiation of the trade relationship.Canada and Mexico eventually agreed to the replacement “USMCA” deal with new wording to boost US jobs.That was after Trump signed an executive order formally ending US participation in the Trans-Pacific Partnership in one of his first official acts as president in January 2017.Long affiliated with the Democratic Party, which historically has been more protectionist of the two major US parties, Navarro received a doctorate in economics from Harvard.Born to a saxophonist father and secretary mother, he was raised by his mother after the two divorced in Bethesda, Maryland, an upscale suburb of the nation’s capital.

Stock markets tumbled along with oil and the dollar Wednesday as US President Donald Trump’s sweeping tariffs against trading partners kicked in, triggering strong retaliation from China. Beijing slapped a higher 84-percent levy on US goods, sharply accelerating losses on European stock markets in early afternoon trading.Growing fears of weakened demand sent oil prices to four-year lows, with international benchmark Brent North Sea crude dropping under $60. Paris and Frankfurt dived almost four percent, also as goods from the European Union now face a 20 percent tariff when entering the United States.London slumped 3.5 percent, with Britain having been hit with a 10 percent levy on Saturday.Most Asian and European equities fell back into the red — Tokyo closed down 3.9 percent — a day after partially rebounding from sharp sell-offs on hopes that Washington might temper some of the levies.But any hopes of a last minute roll-back on tariffs were dashed, as the United States 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.Beijing warned that China had “firm will and abundant means” to fight a trade war, state news agency Xinhua said. 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, dived more than seven percent and British pharmaceutical giant AstraZeneca shed six percent.- Bond yields rise -“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, as expectations for global growth and spending diminished.”It feels like no asset class has been spared as investors continue to price in a growing probability of a US recession,” Reid added.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.Safe-haven yen rose more than one percent. South Korea unveiled a $2 billion emergency support for its crucial export-focused carmakers, warning Trump’s 25 percent tariffs on the sector could deal a terrible blow. To help shore up their economies, India and New Zealand’s central banks cut interest rates.Fears of that Trump’s blow to commerce will spark a global recession saw Wall Street reverse healthy opening gains to end deep in the red on Tuesday — the S&P 500 finished below 5,000 points for the first time in almost a year.- Key figures around 1115 GMT -London – FTSE 100: DOWN 3.5 percent at 7,636.04 pointsParis – CAC 40: DOWN 3.8 percent at 6,835.89Frankfurt – DAX: DOWN 3.9 percent at 19,491.82 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)New York – Dow: DOWN 0.8 percent at 37,645.59 (close)Euro/dollar: UP at $1.1047 from $1.0959 Pound/dollar: UP at $1.2811 from $1.2766Dollar/yen: DOWN at 144.81 yen from 146.23 yen on TuesdayEuro/pound: UP at 86.25 pence from 85.78 penceWest Texas Intermediate: DOWN 5.4 percent at $56.36 per barrelBrent North Sea Crude: DOWN 4.9 percent at $59.68 per barrel

China is trying to tariff-proof its economy by boosting consumption and investing in key industries, but analysts say it remains critically vulnerable to the economic storm triggered by Donald Trump’s 104 percent levies on its goods.Beijing has vowed to “fight to the end” against Trump’s aggressive trade policy, with number two leader Li Qiang saying authorities were “fully confident” in the resilience of the Chinese economy.But even before the tariffs hit, weakness in the post-Covid domestic market, rising unemployment and a long-running property crisis had all dampened consumption.”The Chinese economy has been significantly weakened since Trump’s first term and can’t really withstand the impact of sustained high tariffs,” said Henry Gao, an expert on the Chinese economy and international trade law.Overseas shipments had represented a rare bright spot last year, with the United States the top single country buyer of Chinese goods. US figures put Chinese exports to the United States at around $440 billion in 2024, almost three times the $145 billion worth of imports. Machinery and electronics — as well as textiles, footwear, furniture and toys — make up a majority of the goods sent, and a supply glut could squeeze already crowded domestic consumer markets.Although China’s domestic market is stronger now than in Trump’s previous term, there would inevitably be pain ahead, said Tang Yao from Peking University’s Guanghua School of Management. “Certain products are specifically designed for American or European markets, so efforts to redirect them to domestic consumers will have only a limited effect,” he said.- ‘Strategic opportunity’ -However, a weekend editorial in the Communist Party-backed People’s Daily described the tariffs as a “strategic opportunity” for China to cement consumption as the main driver of economic growth.We must “turn pressure into motivation”, it read. Beijing has been seeking to “recast structural external pressure as a catalyst for long-intended reforms”, said Lizzi Lee from the Asia Society Policy Institute’s Center for China Analysis.Authorities are “projecting confidence”, she said.China’s quick and coordinated response to tariffs reflect lessons learned from Trump’s first term, she added.For example, in addition to readying reciprocal tariffs on US goods set to come into effect Thursday, Beijing’s commerce ministry the same day announced export controls on seven rare earth elements — including ones used in magnetic imaging and consumer electronics.Beijing’s response to any further escalation may no longer be confined to tit-for-tat levies, as China is “refining its retaliatory approach”, Lee said.Since Trump’s first term, China has diversified and fortified relationships with countries in Europe, Africa, Southeast Asia and Latin America, as well as South Korea and Japan. Beijing could also expand government support for the private sector as entrepreneurs fall back into President Xi Jinping’s good graces, added ANZ’s Raymond Yeung.China’s leaders have been trying to promote domestic self-reliance in technology for some time, offering explicit support and reinforcing supply chains in key areas like AI and chips. – ‘No real protection’ -While this time round Beijing has more experience with Trump, it “doesn’t mean the Chinese economy can easily shake off the effects of soaring tariffs”, said Frederic Neumann, chief Asia economist at HSBC.Authorities will be looking to quickly offset falling US demand for Chinese goods, he said.That could look like trade-in schemes or more consumer subsidies that make it easier for Chinese shoppers to buy common household items, from water purifiers to electric vehicles.”By creating demand and trade opportunities for China’s partners in Asia and Europe, the country could help shore up what’s left of the liberal global trading order,” Neumann said.But whether or not Beijing can do that is yet to be seen.The government has “been very reluctant to introduce real consumption stimulus, which is why there’s such low confidence in any so-called consumption-boosting measures”, Gao said. “I don’t think China has any real protection against a trade war,” he added.Success also goes beyond words, and ultimately hinges on Beijing’s ability to deliver the long-awaited consumption boost, HSBC’s Neumann warned.”This is China’s moment to seize economic leadership of the world,” he said. “But that leadership will only come about if domestic demand rebounds and fills the void left by an absent US.”