White House says Canada exempt from Trump’s baseline reciprocal tariffs, raises China’s to 125%

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CTV National News: Trump shocks global markets with 90-day tariff pause

CTV National News: Canada exempt from U.S. reciprocal tariffs

Trump after raising tariffs on China to 125 per cent: 'China wants to make a deal'

Trump announces 90-day pause on reciprocal tariffs, raises China’s tariffs to 125 per cent

Trade war steering global economy to recession: Money manager

U.S. President Donald Trump “authorized” a 90-day pause on some tariffs while vowing to raise levies against China to 125 per cent, effective immediately, he said Wednesday.

It’s not yet clear how those fees will be applied.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” the president wrote.

Trump’s explosive post sent markets surging, which have been prone to huge swings recently, not just day to day, but hour to hour.

Here are the events of the day:

Pause a ‘welcome reprieve,’ Carney says

Carney says Trump’s pause on reciprocal tariffs are a “welcome reprieve for the global economy.”

“As President Trump and I have agreed, the U.S. President and the Canadian Prime Minister will commence negotiations on a new economic and security relationship immediately following the Federal election,” Carney wrote on X.

He adds that with this move, the U.S. is willing to engage in bilateral negotiation, “which will likely result in a fundamental restructuring of the global trading system.”

Despite this reprieve, Canada will continue its efforts to strengthen relationships with other trading partners.

Lynn Chaya, breaking news assignment editor

Trump gives muddled answer

Asked by a reporter about when he arrived at the decision to pause the tariffs on most countries for 90 days, Trump gave a muddled answer.

“For a period of time. I would say this morning. Over the last few days, I’ve been thinking about it,” the president said. He added, “Fairly early this morning.”

Earlier in the day, before announcing the pause, Trump on social media urged people to “BE COOL” and said “THIS IS A GREAT TIME TO BUY!!!”

After members of his administration gave conflicting answers in recent days about whether the tariff hikes were a negotiating ploy, Trump said Wednesday, “A lot of times it’s not a negotiation until it is.”

Commerce Secretary Howard Lutnick, who was in the Oval Office with Trump, said the European Union did not face further retaliatory tariffs like China did because the tariffs that the bloc announced Wednesday do not take effect immediately.

“I’m glad that they held back” Trump said.

The Associated Press

Canada exempt from baseline tariffs

In an email to CTV News Wednesday afternoon, the White House confirmed that Canada is exempt from the 10 per cent baseline reciprocal tariffs it’s imposing on dozens of other countries.

Several other U.S. tariffs remain in place, however, including 25 per cent on foreign-made automobiles, of which Canadian vehicles are exempt until U.S. administration “establish(es) a process” to tax exclusively the non-American vehicle components of Canada-U.S.-Mexico Agreement (CUSMA)-compliant products.

Levies on steel and aluminum — which took effect on March 12 — are also in place.

And 25 per cent tariffs on all Canadian imports and 10 per cent on Canadian energy, which are related to border security, also apply to all non-CUSMA-compliant goods.

Spencer Van Dyk, CTV News Ottawa News Bureau writer & producer. With files from CTV News Ottawa News Bureau supervising producer Stephanie Ha

S&P 500 soars 9.5% to one of its biggest gains since WWII

Stocks surged to one of their biggest gains since World War II after President Donald Trump paused his tariffs against most other nations, as investors had desperately hoped he would. The S&P 500 soared 9.5% Wednesday.

The index is still below where it was when Trump announced his sweeping set of tariffs last week.

The Dow Jones Industrial Average flew nearly 3,000 points higher, and the Nasdaq composite jumped 12.2%.

The S&P/TSX composite index was up more than five per cent as markets closed, a gain of more than 1,200 points.

The Dow was up almost eight per cent, while the Nasdaq was up more than 12 per cent.

Stan Choe, The Associated Press. With files from The Canadian Press

Canada seeking clarity from U.S.: LeBlanc

International Trade Minister Dominic Leblanc has reached out to U.S. Commerce Secretary Howard Lutnick seeking clarity on Trump’s latest tariff move.

Luca Caruso-Moro, digital breaking news assignment editor

The ‘scariest financial data point’

Ernie Tedeschi, former chief economist at the White House Council of Economic Advisors, suggested Trump may have ordered the pause on reciprocal tariffs in part due to the market turmoil seen in the last weeks, and more importantly, the bond market.“

Equity market turmoil was one thing, but having international investors begin to question the safety value of U.S. treasuries is a whole different level,” he told CTV News, adding that it’s the “scariest financial data point that we’ve seen since the tariffs began.”

When asked whether he agrees with the Treasury Secretary’s claim that the pause is not because of the market, Tedeschi says “I just plain don’t believe that.”

Lynn Chaya, breaking news assignment editor

Could some companies be exempt?

Trump says he’s open to tariff carve outs for companies in industries that, “by no fault of their own,” operate in industries that are more reliant on international trade.

“We’re going to take a look at that,” he said, without going into details of which companies could expect such treatment. “You have to have flexibility.”

When asked how he would make those determinations, he said, “Just instinctively.”

“You almost can’t take a pencil to paper. It’s really more of an instinct,” he said.

Luca Caruso-Moro, digital breaking news assignment editor

Stocks rally during afternoon trading

Equity markets saw significant gains Wednesday afternoon.

The S&P/TSX Composite Index was trading 4.74 per cent higher at around 23,572.85. In New York, the S&P 500 Index rose around 7.63 per cent to 5,362.71, the Dow Jones Industrial Average was up 6.41 per cent to 40,057.04 and the Nasdaq Composite Index was up about 9.4 per cent to 16,701.68.

The TSX financials, information technology and materials subgroups were among the most influential upside contributors.

Shopify Inc., Brookfield Corp. and Royal Bank of Canada were some of the companies adding the most points to the index.

Daniel Johnson, BNNBloomberg.ca writer

Trump: ‘China wants to make a deal’

“China wants to make a deal, they just don’t know how quite to go about it,” said Trump, addressing reporters during a photo op with race car drivers in Washington, repeating an idea also suggested yesterday by his press secretary – that Chinese negotiators aren’t yet sure how to approach the United States.

“They’re proud people,” he said, referring to the Chinese. “They’ll figure it out.”

Luca Caruso-Moro, digital breaking news assignment editor

White House claims Trump demonstrated ‘Art of Deal’ as he suspends some tariffs

“Many of you in the media clearly missed the ‘Art of the Deal,‘” White House press secretary Karoline Leavitt told reporters, in a nod to the Trump’s 1987 memoir and advice book.

“You clearly failed to see what President Trump is doing here. You tried to say that the rest of the world would be moved closer to China, when in fact, we’ve seen the opposite effect — the entire world is calling the United States of America, not China, because they need our markets,” she added.

The Associated Press

Bessent says U.S. was ‘overwhelmed’ with offers to negotiate

In a briefing at the White House, U.S. Treasury Secretary Scott Bessent clarified that reduced 10 per cent baseline tariffs will remain in place for most countries after U.S. President Donald Trump announced a 90-day pause.

He said the move is being taken because the U.S. has been “overwhelmed with responses from allies who want to negotiate in good faith” since Trump announced the latest round of tariffs.

Bessent said the pause is being taken due to “a processing problem.” He added that the solution for each country will be “bespoke” and Trump wishes to be personally involved in each negotiation.

He said “everything is on the table” when it comes to negotiations.

He shrugged off suggestions that tariffs are being reduced due to pressure on stock markets and credited Trump’s negotiating strategy for giving the U.S. new leverage in negotiations.

Joshua Freeman, CTVNews.ca federal election writer

U.S. markets jump after Trump announces ‘pause’

U.S. stock markets jumped higher after U.S. President Donald Trump announced his “pause” on some “reciprocal” tariffs.

The Dow Jones was up more than five per cent at about 1:40 p.m. ET, while the S&P 500 rose more than six per cent and the Nasdaq by about eight per cent.

Michael Lee, CTVNews.ca lead morning producer

Trump raises tariffs on China, again

In a Truth Social post, Trump announced that he will increase tariffs on China again “based on the lack of respect China has show to the World’s Markets.

”The tariffs charged to China are now at 125 per cent, “effective immediately,” he said.

“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.”

Lynn Chaya, breaking news assignment editor

Unifor endorses Canada’s tariffs

Unifor, the Canadian union representing nearly 22,000 auto workers, publicly endorsed Canada’s retaliatory tariffs on American vehicles, which come into force today.

“Canada did not start this trade war, but we have no choice but to fight,” Unifor National President Lana Payne said in a statement on Wednesday.

“We refuse to back down and sacrifice Canada’s auto jobs and industry on Donald Trump’s altar.”

Canada’s auto tariffs, like the American levies they counter, only affect vehicles that don’t comply with the countries’ free trade agreement, known as CUSMA.

Imported vehicles that are compliant with CUSMA will only face tariffs on content not originating in Canada or Mexico.

CUSMA requires that a certain percentage of the vehicle be made with North American steel and aluminum. It also requires a 75 per cent “regional value content,” meaning that value of the good needs to originate from Canada, the United States, or Mexico.

It also includes a labour value content requirement, meaning a significant portion of the value of the vehicle must be produced by a worker earning at least US$16 per hour.

Luca Caruso-Moro, digital breaking news assignment editor

Trade war brings uncertainty for Delta

Delta Air Lines, which believed as recently as January that it was on track for its best financial year in company history, said Wednesday that disruptions in global trade have created such enormous uncertainty that it scratched its performance expectations for 2025.

It is a remarkable walk-back for the United States’ most profitable airline, and other companies are following suit. Hours after Delta removed its guidance for the year, Walmart dropped the first-quarter operating profit guidance it had provided to investors, citing tariff risks.

Delta is cutting its flight schedule in anticipation of a slowdown in spending as businesses and households brace for higher prices.

The Associated Press

Tech stocks keep Wall St. afloat

The Nasdaq inched higher on Wednesday, as investors bought beaten-down technology stocks in a choppy session that remained centered on tariff moves as China retaliated with more levies on U.S. goods.

Large technology stocks led the gains, with Apple AAPL.O rising 3.3% and Nvidia NVDA.O up 2%. The tech sector .SPLRCT was up 1.5%.

“The reflex to buy the dip is very strong and certainly the wipeout you’ve seen in tech stocks makes them cheap relative to where they were,” said Chris Beauchamp, chief strategist at IG.

The S&P 500 .SPX and the Dow .DJI, however, edged lower.

Reuters

Canada’s main index falls

Canada’s main stock index fell in late-morning trading, weighed down by losses in the utility and financial sectors, while U.S. stock markets climbed higher even as China raised its tariffs on U.S. goods in response to the latest moves by U.S. President Donald Trump.

“Growing concern about the potential impact of tariffs on the world economy has put stocks under pressure again today,” said SIA Wealth Management portfolio manager and chief market strategist Colin Cieszynski in a note Wednesday.

The S&P/TSX composite index was down 41.29 points at 22,465.61.

The Canadian Press. Read the full story here.

Trade war brings uncertainty for most profitable airline in the U.S.

Delta Air Lines, which believed as recently as January that it was on track for its best financial year in company history, said Wednesday that disruptions in global trade have created such enormous uncertainty that it scratched its performance expectations for 2025.

It is a remarkable walk-back for the nation’s most profitable airline, and other companies are following suit. Hours after Delta removed its guidance for the year, Walmart dropped the first-quarter operating profit guidance it had provided to investors, citing tariff risks.

Delta is cutting its flight schedule in anticipation of a slowdown in spending as businesses and households brace for higher prices.

The Associated Press

Tariffs necessitate new strategies that may lead to higher prices for consumers: European Chamber in China

The European Chamber in China said Wednesday that the latest U.S. tariffs will necessitate a strategic rethink of business models and supply chains for many.

This will lead to a substantial increase in operational costs and inefficiencies, and ultimately higher prices for consumers.

Some companies that currently produce in China for export to the U.S. will need to identify alternative markets, while others may need to move production from China in order to continue servicing the U.S. market.

China’s countermeasures will also have a negative impact on some foreign-invested enterprises in China that import certain components from the U.S. for their production. For companies that are unable to source alternatives, this could also result in them having to move their production out of China altogether.

The Associated Press

Monitoring metals

Gold futures rose for a second straight day, with futures climbing more than 3% to US$3,085 per ounce Wednesday morning.

Interest in buying gold typically spikes in times of uncertainty, as anxious investors seek a “safe haven” for parking their money.

Copper prices rose for the first time in five days, gaining 1.4% to $4.20 per pound. Silver gained nearly 2% to $30.22 per ounce.

The Associated Press

Trump disrupts economic order, even though the U.S. is dominant

By declaring a trade war on the rest of the world, U.S. President Donald Trump has panicked global financial markets, raised the risk of a recession and broken the political and economic alliances that made much of the world stable for business after World War II.

Trump’s latest round of tariffs went into full effect at midnight Wednesday, with higher import tax rates on dozens of countries and territories taking hold.

Economists are puzzled to see Trump trying to overhaul the existing economic order and doing it so soon after inheriting the strongest economy in the world. Many of the trading partners he accuses of ripping off U.S. businesses and workers were already floundering.

“There is a deep irony in Trump claiming unfair treatment of the American economy at a time when it was growing robustly while every other major economy had stalled or was losing growth momentum,” said Eswar Prasad, professor of trade policy at Cornell University.

“In an even greater irony, the Trump tariffs are likely to end America’s remarkable run of success and crash the economy, job growth and financial markets.‘’

The Associated Press. Read the full story here.

Beijing asks citizens to think twice before visiting U.S.

Beijing today issued a travel advisory asking its citizens to evaluate risks of visiting the U.S. as tourists and to exercise caution.

The advisory, issued by the Chinese Ministry of Culture and Tourism, cited the deterioration of the China-U.S. economic and trade relations as well as the “safety situation” in the U.S. The advisory came shortly after China raised its tariffs on the U.S. to 84%, as the trade war between the two countries escalated.

The Associated Press

EU imposes new tariffs on US$23B in goods

European Union member states voted to approve the retaliatory tariffs on US$23 billion in goods in response to Trump’s 25% tariffs on imported steel and aluminum.

The tariffs will go into effect in stages, with some on April 15 and others on May 15 and Dec. 1. The EU executive commission didn’t immediately provide a list of the goods Wednesday.

Members of the 27-country bloc repeated their preference for a negotiated deal to settle trade issues: “The EU considers U.S. tariffs unjustified and damaging, causing economic harm to both sides, as well as the global economy. The EU has stated its clear preference to find negotiated outcomes with the U.S., which would be balanced and mutually beneficial.”

The head of the EU’s executive commission, Ursula von der Leyen, has offered a zero-for-zero tariffs deal on industrial goods including cars. But Trump has said that’s not enough to satisfy U.S. concerns.

The Associated Press

Pharma shares tumble on Trump’s tariff pledge

U.S. President Donald Trump is promising to impose tariffs on pharmaceuticals so that more medications would be made in the U.S. Some investors aren’t waiting around to find out the exact details.

“We’re going to be announcing, very shortly, a major tariff on pharmaceuticals,” Trump said Tuesday night.

Eli Lilly shares dropped 2.7% early Wednesday, while Pfizer shares gave back 2.4%. Merck and Johnson & Johnson each fell almost 2%. In overseas trading, Novartis shares fell 5.8% and Roche Holding dropped 4.6%.

Trump lamented that the U.S. no longer produces many of the pharmaceuticals that Americans take, and said new tariffs would change that by bringing production of medication back to the U.S.

The Associated Press

China uses World Trade Organization meeting to lash out at Trump

China has used a meeting of the World Trade Organization to lash out at the Trump administration’s tariffs, accusing the United States of setting the global trading system “ablaze.”

A Chinese envoy at a WTO council meeting on Wednesday said the U.S. tariffs infringed on the right of countries to develop, and noted for example that earthquake-hit Myanmar was facing an “exorbitant” 44% tariff and even an “uninhabited island, home only to penguins and seals” faced a 10% tariff.

The official said U.S. President Donald Trump’s tariffs contravened the U.S.’s commitments under WTO rules, and the “so-called ‘reciprocal tariff” has set the very architecture of the multilateral trading system ablaze."

The Chinese mission provided a copy of the statement in the closed-door session to The Associated Press but declined to identify the speaker by name.

Contacted by the AP, the U.S. diplomatic mission in Geneva declined to comment.

The Associated Press

Trump promotes investing in U.S. as antidote

Trump says tariffs will be “ZERO” for companies that come back to America.

“This is a GREAT time to move your COMPANY into the United States of America,” the Republican president wrote on his social media site as he continues to defend sweeping global tariffs he announced last week that have roiled the stock market.

U.S. stock futures were sinking again in premarket trading on Wednesday after massive U.S. tariffs against China kicked in overnight, followed by China retaliating with a huge tariff increase on U.S. imports.

The Associated Press

S&P/TSX composite opens down more than 100 points

TORONTO - Canada’s main stock index was down more than 100 points in early trading, while U.S. stock markets were mixed as China hit back with a tariff increase of its own on the U.S.

The S&P/TSX composite index was down 140.14 points at 22,366.76.

In New York, the Dow Jones industrial average was down 253.61 points at 37,391.98. The S&P 500 index was down 15.23 points at 4,967.54, while the Nasdaq composite was up 70.96 points at 15,338.87.

The Canadian dollar traded for 70.58 cents US compared with 70.44 cents US on Tuesday.

The move on the markets came as the latest set of U.S. tariffs, including a 104 per cent charge on Chinese imports, came into force. China has responded by raising its retaliatory tariff on the U.S. to 84 per cent, up from 34 per cent, effective Thursday.

Stock markets have been falling since Trump announced plans for so-called reciprocal tariffs last week. The move imposed higher import tax rates on dozens of countries around the world, prompting increased fears of a global recession due to the trade war.

The Canadian Press

JPMorgan CEO expects recession and defaults

NEW YORK - JPMorgan Chase CEO Jamie Dimon said on Wednesday that sweeping tariffs imposed by U.S. President Donald Trump will probably lead to a recession and defaults by borrowers, he told Fox Business’ Mornings with Maria.

“So long as you have rates going up ... inflation is sticky and credit spreads are gapping out, which they’re going to, I think you’ll see more credit problems,” Dimon said.

Dimon urged fast progress on trade negotiations with U.S. trading partners in order to calm markets, which have been roiled by tariff announcements.

“I hope what they really do is... get those things done quickly,” he said, referring to trade negotiations between U.S. Treasury Secretary Scott Bessent and other nations. “If they want to calm down markets, show progress on those things.”

Dimon, 69, is one of the most prominent voices in corporate America and has regularly been consulted by administrations during times of crisis. His name was floated for senior economic roles in government during the 2024 presidential campaign, including Treasury secretary, but he stayed put at the bank.

“I’m taking a calm view, but I think it could get worse if we don’t make some progress here,” Dimon said.

JPMorgan’s economists raised the risk of a U.S. and global recession this year to 60% from 40% after Trump unveiled the trade barriers.

Dimon also said that the economy is facing considerable turbulence and tariffs will have lasting negative consequences in his annual letter published on Monday.

By Nupur Anand, Suzanne McGee, Reuters

China retaliates with 84% tariffs on U.S. goods

China has again vowed to “fight to the end,” raising tariffs on American goods to 84% to match Trump’s addition of a 50% tariff, while adding an array of additional countermeasures Wednesday.

The 84% tariff will go into effect Thursday, and comes as a 104% tax on the country’s exports to the U.S. came into effect. “If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce wrote in a statement introducing the white paper.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

“If the U.S. truly wants to resolve issues through dialogue and negotiation, it should adopt an attitude of equality, respect and mutual benefit,” said Ministry of Foreign Affairs spokesman Lin Jian Wednesday.

The Associated Press

Tata Steel to cut around 20% of workforce

Tata Steel said Wednesday it was cutting 20% of its Dutch workforce, citing in part geo-political developments. Some 1,600 workers are set to lose their jobs

Facing rising energy prices and Chinese competition, the Indian-owned firm has been struggling for several years. During the last financial year, which ended in March 2024, it booked a 556 million euro (US$613 million) loss.

The company is also facing a 25% tariff imposed by the Trump administration. Around 12% of what the company produces in the Netherlands is exported to the United States.

“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,” Tata said in a statement.

The Associated Press

`We are a little worried about the future’

Francois-Xavier Huard, the head of the French dairy federation, says the impact of U.S. tariffs on the sector will be significant, with likely greater losses than in 2019 when the previous Trump administration already imposed heavy duties on cheese and other European Union products.

Speaking to The Associated Press on Wednesday, Huard said losses on French cheese exports at the time amounted to 15 million euros (US$16.6 million). He said food price inflation in the U.S., combined with the new tariffs, was likely to have an even greater impact on cheese sales, including high-end varieties.

“It is expected to be in the tens of millions of euros,” he said, insisting on the need for a response at EU level. “So we are vigilant and also a little worried about the future. The idea is that we have to react, but be careful not to overreact, as world trade is a highly inflammable matter.”

The Associated Press

Futures slide as China announces additional tariffs on U.S. goods

U.S. stock index futures moved sharply lower on Wednesday after China announced additional tariff measures on U.S. goods, retaliating to President Donald Trump’s reciprocal tariffs which came into effect.

China will impose 84% tariffs on U.S. goods from Thursday, up from the 34% previously announced, the finance ministry said.

At 07:08 a.m. ET, Dow E-minis were down 709 points, or 1.87%, S&P 500 E-minis were down 86.5 points, or 1.72% and Nasdaq 100 E-minis were down 250.75 points, or 1.45%.

(Reporting by Shashwat Chauhan in Benglauru; Editing by Arun Koyyur)

Reuters

Futures points to more losses for U.S. stock markets

TORONTO - The futures market suggested more losses were in store for U.S. stock markets when trading begins this morning as U.S. President Donald Trump’s latest round of tariffs went into full effect.

Stock markets in Asia and Europe were down as the latest set of U.S. tariffs, including a 104 per cent charge on Chinese imports, came into force.

China has responded by raising its retaliatory tariff on the U.S. to 84 per cent, up from 34 per cent, effective April 10.

Stock markets have been falling since Trump announced plans for so-called reciprocal tariffs last week.

The move imposed higher import tax rates on dozens of countries around the world.

It has also prompted increased fears of a global recession due to the trade war.

The Canadian Press

Pakistan sending high-level delegation to the U.S.

Pakistan’s Prime Minister Shehbaz Sharif on Wednesday said he is sending a delegation to the United States for talks with the Trump administration over 29% tariffs on Pakistani imports.

According to a government statement, the delegation will include prominent business leaders and key exporters.

It said the decision was made during a high-level meeting chaired by Sharif in Islamabad to discuss how to enhance exports and review the impact of U.S. tariffs on Pakistan.

Pakistan heavily relies on foreign loans, and any decline in its exports will harm its already fragile economy.

The Associated Press

France says ‘nothing has been ruled out’

French businesses should suspend their investments in the United States “at least during the first weeks and months of negotiations” about trade tariffs, government spokesperson Sophie Primas said, echoing a similar call last week by President Emmanuel Macron.

‘We need to stand united,” Primas said, while she acknowledged Paris and Brussels can’t prevent European companies “from moving elsewhere.”

“But I think a pause (in investments) is welcome,” she said.

Europe’s response to the tariffs will be “united, proportionate and determined,” Primas said. “Nothing is set in stone at this stage as we obviously need to negotiate with all our European partners. But nothing has been ruled out,” she added.

Primas said it’s only through maintaining a power struggle with the U.S. that “we’ll be able to protect our interests,” even though she stressed the EU would prefer a “negotiated solution.”

The Associated Press

Japanese officials aim for stability

Japanese Finance Ministry official Atsushi Mimura told reporters Wednesday his ministry had agreed with Bank of Japan and the Financial Services Agency “to do their utmost to keep stability in the global financial markets.”

Mimura made the comment to Kyodo and other reporters after he met with Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and other financial officials at the ministry’s offices.

Although the name of U.S. President Donald Trump was not mentioned, the hastily called meeting appeared to be a response to recent volatility in global stock markets, including the Tokyo Exchange, that has followed Trump’s tariffs, as well as worries about possible damage to the Japanese economy.

The Associated Press

China vows to fight to the end

China again vowed to “fight to the end” against Donald Trump’s tariffs in a lengthy policy statement published Wednesday, arguing that trade between the two countries is in balance as a 104% tax on the country’s exports to the U.S. came into effect.

The government declined to say whether it would negotiate with the White House, as many other countries have started doing.

“If the U.S. insists on further escalating its economic and trade restrictions, China has the firm will and abundant means to take necessary countermeasures and fight to the end” the Ministry of Commerce wrote in a statement introducing the white paper.

The paper says that the U.S. has not honored the promises it made in the phase 1 trade deal concluded during Trump’s first term, and argues that taking into account trade in services and U.S. companies’ domestic Chinese branches, economic exchange between the two countries is “roughly in balance.”

The Associated Press

Spanish PM says all will lose from trade war

On a visit to Hanoi, Spanish Prime Minister Pedro Sánchez is strengthening commercial ties with Vietnam amid the global economic turmoil caused by the United States’ sweeping tariffs.

The U.S. has slapped Spain, as a European Union member, with a 20% blanket tariff that rises to 25% for cars, steel and aluminum. Vietnam fared even worse and faces a crippling 46% duty.

Sánchez, making a first ever visit by a Spanish president to the southeast Asian country, said that “Spain and Vietnam are advancing toward a strategic, integral relationship” and announced a credit line of 305 million euros for Spanish companies to invest in Vietnam, especially in transport, infrastructure, energy and water resources.

Sánchez said that both countries were committed to the multilateral trade status quo that is being shaken by Donald Trump’s tariffs.

“We are firm believers in free trade to achieve development and prosperity,” Sánchez said after meeting with Vietnamese Prime Minister Pham Minh Chinh. “A trade war favors no one. We all will lose.”

Spain’s government wants to offer cheap credit for domestic companies whose export business to the U.S. could be harmed by Trump’s tariffs. Spain’s economy minister said Tuesday that 80% of Spain’s total of 18.6-billion euros worth of exports to the U.S. could be impacted.

After his stops in Hanoi and Ho Chi Minh City, Sánchez will visit China on Friday seeking closer economic and diplomatic ties with Trump’s No. 1 tariff target.

The Associated Press

European shares slide

Germany’s DAX lost 2.1% to 19,857.36. In Paris, the CAC 40 declined 2.1% to 6,949.92. Britain’s FTSE 100 gave up 2% to 7,753.42.

The future for the S&P 500 lost 0.7% while that for the Dow Jones Industrial Average was down 0.5%.

The Associated Press

China says it will take ‘resolute measures’

China said it will take “resolute measures” to defend its trading rights, but gave no details on how it will respond to U.S. moves that have pushed tariffs on Chinese goods to an unprecedented 104%.

Foreign Ministry spokesperson Lin Jiang said at a daily briefing Wednesday that China would “by no means” accept the U.S. tariff hikes and extreme pressure exerted on China.

Lin repeated China’s assertion that it would “fight to the end” against what it has described as trade bullying by the U.S., but did not say whether it would add to the 34% tariffs earlier announced on U.S. imports or apply other means. And Lin repeated Beijing’s belief that the U.S. must first “demonstrate sincerity for talks.”

The Associated Press

India’s Central Bank cuts key repo rate

India’s Central Bank cut its key repo rate by 25 basis points on Wednesday, in a move to aid the sluggish economy that faces heat from the U.S reciprocal tariffs which are set to dampen New Delhi’s aspirations for an export-led recovery. That is the interest rate at which the institution lends money to commercial banks when there is a need for short-term needs.

The Monetary Policy Committee of the Reserve Bank of India unanimously voted to lower the repo rate to 6% for the second consecutive time this year, and changed its monetary policy stand from “neutral” to “accommodative.”

Governor Sanjay Malhotra said in a statement the latest tariffs have “exacerbated uncertainties clouding the economic outlook across regions, posing new headwinds for global growth and inflation.”

India continues to make steady progress though towards its goals of price stability, economic growth and inflation, but the Bank remains vigilant to the possible risks from global uncertainties, said Malhotra.

Bank of Japan calls meeting on global economy and markets.

Top officials from the Bank of Japan, the Finance Ministry and the Financial Services Agency met Wednesday to discuss the nation’s response to what they said were the recent shifts in the global economy and markets.

The unexpectedly called meeting was believed to be over Trump’s recent tariffs, which have set off gyrations in global financial markets, including the Tokyo Stock Exchange. Trump was not mentioned in the announcement about the meeting.

Attending the meeting were Koji Nakamura and Seiichi Shimizu, directors at the Bank of Japan, and two officials each from the ministry and the agency.

The Associated Press

Asia markets close down

Japan’s Nikkei 225 lost 3.9% to 31,714.03. In Hong Kong, the Hang Seng lost 0.4% to 20,041.03, while the Shanghai Composite index reversed early losses, gaining 0.9%. to 3,173.56.

Taiwan led losses in Asia, as its Taiex plunged 5.8%. Big tech manufacturers were among the biggest decliners. Computer chip giant TSMC Corp. dropped 3.8% while iPhone maker Hon Hai Precision Industry plunged 10%.

South Korea’s Kospi lost 1.7% to 2,293.70, and the government said it would provide help for its beleaguered automakers.

The S&P/ASX 200 in Australia declined 1.8% to 7,375.00. Shares in New Zealand also fell.

In India, the Sensex declined 0.5% as the central bank cut its benchmark interest rate, while Bangkok’s SET shed 0.8%.

The Associated Press

Asia markets slide after tariffs go into effect

Japan’s Nikkei 225 dipped more than 5% and other Asian shares also sank Wednesday as the latest set of U.S. tariffs, including a massive 104% levy on Chinese imports, took effect.

Markets have been wobbly for days, with investors flummoxed over what to make of President Donald Trump’s trade war.

On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%.

Stocks had rallied globally on Tuesday, with indexes up 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. Any optimism or buying enthusiasm appeared to have dissipated by the time the sharply higher tariffs became reality.

The Nikkei 225 was down 4.7% at 32,475.57 as of mid-afternoon Tokyo time.

In Hong Kong, the Hang Seng lost 1.8% to 19,769.24, while the Shanghai Composite index edged just 4 points lower, to 3,141.46.

South Korea’s Kospi lost 1.9% to 2,290.87, while the S&P/ASX 200 in Australia declined 1.8% to 7,374.80. Shares in New Zealand also fell.

The Associated Press

Bangladesh manufacturers worry about losing U.S. market share

Garment manufacturers and exporters in Bangladesh, the world’s second largest after China, are worried about losing its share in the apparel market of the United States, which is imposing new tariffs of 37%.

The U.S. is Bangladesh’s largest market as a single destination where the country’s nearly $39 billion industry exported apparel goods worth $7.34 billion in 2024.

Now, Bangladesh’s manufacturers say their U.S. buyers are halting orders, which could help competitors like India and Pakistan overtake Bangladesh in the U.S. market.

Bangladesh has already sought postponement of the application of the new tariff for three months to help the country assess the situation and smoothly implement its initiatives.

Asif Ashraf, managing director of Urmi Group, says they are worried about the U.S. market “because it will change the global equilibrium.” The sector employed about 4 million workers, mostly women from rural areas, and the industry accounts for about 80% of the country’s total annual exports.

The Associated Press

South Korea launches emergency funding program for auto industry

South Korea has launched an emergency funding program worth 3 trillion won ($2 billion) to help its automobile industry cope with the impact of increased tariffs imposed by the Trump administration.

The government package announced on Wednesday includes expanded low-cost financing from state-run lenders, as well as a new financing program backed by auto giants Hyundai and Kia, along with financial institutions, aimed at supporting struggling carmakers and auto parts manufacturers. The government will also expand subsidies for electric vehicle purchases.

Cars and auto parts stand as South Korea’s top export items to the United States, according to the Ministry of Trade, Industry and Energy, which raised concerns that the Trump administration’s imposition of a 25% tariff on these products will have a “significant shock” on the industry. The ministry says South Korea’s exports of automobiles to the United States totaled $34.7 billion last year, while exports of auto parts amounted to $8.2 billion.

The Associated Press

Trump’s new tariffs go into effect

President Donald Trump’s sweeping new tariffs went into full effect just after midnight Wednesday.

When Trump announced the latest round of tariffs on April 2, he declared that the U.S. would now tax nearly all of America’s trading partners at a minimum of 10% — and impose steeper rates for countries that he says run trade surpluses with the U.S.

The 10% baseline already went into effect Saturday. Trump’s higher import tax rates on dozens of countries and territories took hold at midnight.

The steeper levies run as high as 50% — with that biggest rate landing on small economies that trade little with the U.S., including the African kingdom of Lesotho. Some other rates include a tax of 47% on imports from Madagascar, 46% on Vietnam, 32% on Taiwan, 25% on South Korea, 24% on Japan and 20% on the European Union.

Some of these new tariffs build on previous trade measures. Trump last week announced a tariff of 34% on China, for example, which would come on top of 20% levies he imposed on the country earlier this year. Trump has since threatened to add an another 50% levy on Chinese goods in response to Beijing’s recently promised retaliation. That would bring the combined total to 104% against China.

The Associated Press