U.S. to impose 104% tariffs against China tonight, Canada ready to launch auto levies

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The U.S. will impose 104 per cent tariffs against China at 12 a.m. on Wednesday, White House spokesperson Karoline Leavitt confirmed at a press briefing.

“If China reaches out to make a deal, (Trump) will be incredibly gracious, but he’s going to do what’s best for the American people,” she said from the podium.

On Monday, the U.S. president promised to raise tariffs against China after that country levied its own 34 per cent counter-taxes against American goods. China had upped the ante on the U.S. after Trump unveiled his “Liberation Day” tariffs against trading partners around the world.

Trump’s Tuesday announcement is the latest escalation in a trade war that has rocked financial markets around the world, prompting wild swings and major selloffs.

Here’s a look at everything that happened on April 8, 2025.

U.S. markets close in red

U.S. stocks dove Tuesday following another stunning reversal, with Wall Street veering from a huge gain at the opening of trading to more losses at the close, because investors still have no idea what to make of U.S. President Donald Trump’s trade war, which is scheduled to kick into a higher gear after midnight.

After blasting to an early gain of 4.1%, which would have marked its best day in years, the S&P 500 quickly lost all of it. It then careened to a loss of 3 per cent before paring its drop to 1.6 per cent. That left the index, which sits at the heart of many investors’ 401(k) accounts, nearly 19 per cent below its record set in February.

The Dow Jones Industrial Average lost 320 points, or 0.8 per cent, after erasing an earlier surge of 1,460 points, while the Nasdaq composite dropped 2.1 per cent.

The Associated Press

U.S. senator asks: Who is responsible if Americans suffer?

Trump’s top trade negotiator came under fire Tuesday from senators unnerved by the president’s sweeping global tariffs, a market meltdown and the heightened risk of recession from an upended global trading order.

“It seems like we’ve decided to begin a trade war on all fronts,″ said Republican Sen. Thom Tillis of North Carolina. He said he wanted to know who in the Trump administration he should hold responsible — and “choke″ — if the tariffs fail and Americans suffer from higher prices and slower economic growth.

“I wish you well,″ he told U.S. Trade Representative Jamieson Greer. ”But I am skeptical.‘’

The Associated Press

Bitcoin moves lower

The price of bitcoin, the most popular cryptocurrency, fell to around $76,600 as it gave up an earlier gain, similar to stocks.

Also, the U.S. Justice Department announced it is disbanding a team of prosecutors who targeted cryptocurrency crimes and is shifting its focus away from complex crypto-related cases involving banking and securities law, according to a memo reviewed by The Associated Press.

The Associated Press

Canadian auto tariffs to hit U.S. tonight

Canada’s tariffs on American autos are set to take effect tonight, Finance Minister François-Philippe Champagne confirmed.

The measures, first announced on April 3, were drawn in response to widespread U.S. import tariffs on vehicles. Canada’s tariffs charge an extra 25 per cent tax on non-CUSMA compliant vehicles imported from the U.S.

It also charges 25 per cent tariffs on non-Canadian, non-Mexican content of CUSMA-compliant vehicles from the U.S. Read the full list here.

“The government is firmly committed to getting these U.S. tariffs removed as soon as possible, and will protect Canada’s workers, businesses, economy and industry,” Champagne said in a press release.

How does CUSMA apply to autos?

CUSMA requires that a certain percentage of the vehicle is 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

Markets sputter

After a strong open on Tuesday, North American markets are now hovering around yesterday’s close.

The Dow Jones, S&P 500, Nasdaq and TSX all dipped into the red at 2:30 p.m. EDT, despite spending most of the day comfortably in the green.

Luca Caruso-Moro, digital breaking news assignment editor

New York Fries?: Trade war tests Canadian companies with U.S. names

Canada’s tariff war with the U.S. has many homegrown companies hoping customers remember there’s more to them than their names.

Despite branding themselves with nods to the U.S., Boston Pizza, New York Fries, Montana’s, California Sandwiches and The Great American Backrub are all Canadian and have been working to ensure the public doesn’t forget.

“Not going to lie, we’ve had to do a little bit of pivoting,” said Alyssa Berenstein, senior director of marketing at Vaughan, Ont.-headquartered New York Fries.

“We’ve had to do a little bit of answering questions to consumers who may or may not understand the fact that we are wholeheartedly a Canadian brand owned by a Canadian company.”

The Canadian Press. Read the full story here.

European markets rally

Stock markets throughout Europe notched broad gains amid hopes that the potential for negotiations still exists over economically damaging tariffs.

Germany’s DAX closed 2.5 per cent after shedding 4.1 per cent on Monday. France’s CAC 40 rose 2.5 per cent after shedding 4.8% on Monday. Britain’s FTSE 100 rose 2.7 per cent after falling 4.4 per cent on Monday.

European markets have been following the same volatile twists and turns as U.S. and Asian markets. They will likely remain volatile amid the uncertainty over how and where the U.S. imposes tariffs, how other nations retaliate and how much damage the global economy sustains.

The Associated Press

‘Magnificent Seven’ bounce back

The dominant group of U.S. stocks known as the “Magnificent Seven” is bouncing back, helping power the broad rally on Wall Street.

Chipmaker Nvidia and Tesla are leading the pack in midday trading with a gain of 5.5 per cent and 5.4 per cent, respectively. Microsoft, Apple, Amazon, Meta Platforms and Google parent Alphabet are all up between 3 per cent and 2.1 per cent.

The solid rebound comes a day after the a mixed finish for the group.

The “Magnificent Seven” are so massive in size, their movements carry more weight on the S&P 500 and other indexes than other stocks.

The Associated Press

U.S. ‘simply can’t’ produce enough softwood lumber alone: expert

American consumers could be paying more to build new homes after the U.S. announced it will more than double existing duties on Canadian softwood lumber.

“In the end, the U.S. consumer ends up paying additional money,” Supply-Build Canada president Liz Kovach told CTV’s Your Morning on Tuesday. “It is an extra cost that is being passed on to the U.S. consumer and that’s not an ideal situation when you are looking for housing affordability.”

Claiming that the Canadian lumber industry is unfairly subsidized, the U.S. Department of Commerce announced Friday that it planned to hike duties on Canadian softwood lumber from 14.4 per cent to 34.45 per cent.

The softwood lumber dispute between the U.S. and Canada has spanned decades. The root of the issue is that Canadian timber is largely harvested from provincially owned land at set fees, while U.S. trees typically come from privately owned lots. The new duties are separate from proposed tariffs.

“We don’t need their lumber because we have our own forests,” U.S. President Donald Trump previously told the World Economic Forum in Davos in January.

“The reason why we supply so much material is they simply can’t produce it alone,” Kovach said.

Daniel Otis, CTVNews.ca writer. Read the full story here.

Canada needs ‘growth-first’ agenda: Scotiabank CEO

The head of Scotiabank says Canada needs a “growth-first agenda” as the country finds itself at a crossroads.

Speaking at the bank’s annual general meeting in Halifax, chief executive Scott Thomson said it has become abundantly clear that for too long Canada has let its growth and productivity stagnate.

Thomson says it’s time to stop relying so much on external relationships that Canada has perhaps taken for granted, and instead build more capacity at home.

The Canadian Press. Read the full story here.

Chipmakers power broader market’s gains

Nvidia surged 5.3%, Broadcom jumped 7.6% and Advanced Micro Devices rose 3.5%. The companies and broader technology sector jumped amid hopes for negotiations over tariffs.

Chipmakers and other technology companies have an outsized impact on the broader market because of their pricey valuations. Big moves for the sector’s most valuable companies can swing the market on their own or accentuate an already sharp move.

Technology companies have seen their values skyrocket over hopes for artificial intelligence advancements. Higher costs for chips and other technologies pose a risk to that development and the earnings growth prospects for those companies.

The Associated Press

U.S. sees fewer overseas visitors

Visits to the U.S. from overseas fell 11.6% in March compared to the same month last year, according to preliminary government data.

Tourism industry experts suspect foreign travellers have been angered by U.S. President Donald Trumps’ tariffs and rhetoric, and alarmed by reports of tourists getting arrested at the border.

The CEO of research institute that studies the preferences of Chinese tourists says leisure trips to places like Disneyland, Hawaii and New York are decreasing dramatically. He calls the trend the “Trump Slump.”

The Travel and Tourism Office data released Tuesday didn’t include arrivals from Canada or land crossings from Mexico. Industry analysts are expecting U.S. visits by Canadians to drop significantly.

The Associated Press

Gains among top TSX movers

Top movers on the TSX include TD (share price: $81.58, up 2.81 per cent), Power Corporation of Canada (share price: $49.70, up 1.78 per cent), Baytex Energy Corp. (Share price: $2.40, up three per cent), Whitecap Resources Inc. (share price: $7.78, up 1.63 per cent) and Shopify Inc. (share price: $120.40, up 7.2 per cent).

Shares mentioned: TD, POW, BTE, WCP, SHOP

Luca Caruso-Moro, digital breaking news assignment editor

TSX rallies alongside U.S. markets

The TSX Composite Index is also showing gains this morning, rising more than 500 points by 10:15 a.m. EDT for a 2.3 per cent bump since yesterday’s close.

Though, there is still a lot of ground to cover to make up for the losses incurred since Trump’s reciprocal tariffs were announced on April 2.

Luca Caruso-Moro, digital breaking news assignment editor

Global markets bounce back

The bounce back for global markets on Tuesday perhaps shouldn’t be a surprise. Stocks don’t go in one direction forever, and some of the best days in the market’s history have been clustered around some of its worst days.

The biggest gain for the S&P 500 since World War II was an 11.6 per cent surge on Oct. 13, 2008, for example. That was during the depths of the Great Recession, when worries were high that the financial system was collapsing and the S&P 500 was in the midst of a nearly 57 per cent plunge from its peak in late 2007 until its bottom in March 2009. A couple weeks later, the index had another one of its best days in history, soaring 10.8 per cent.

That’s one of the reasons many financial advisers suggest not trying to time the market and selling stocks and other investments meant for the long term when nervous, because of the risk of missing out on such huge up days.

The Associated Press

Small business optimism slips in March

Small business owners’ optimism slipped in March, as they dealt with looming tariffs and other new policies implemented by the Trump administration.

Optimism fell 3.3 points in March to 97.4, according to a poll by The National Federation of Independent Business, which is a widely used gauge of the economic health of small businesses.

The index fell slightly below the 51-year average of 98, following four months above the average.

“The implementation of new policy priorities has heightened the level of uncertainty among small business owners over the past few months.” said NFIB Chief Economist Bill Dunkelberg. “Small business owners have scaled back expectations on sales growth as they better understand how these rearrangements might impact them.”

The Associated Press

The gold bounce

After hitting a new high last week, gold prices have tumbled following Trump’s “Liberation Day.” But futures bounced back some Tuesday morning.

The price of New York spot gold hit all-time record on April 2, per FactSet, closing at about $3,134 per Troy ounce -- the standard for measuring precious metals -- just before Trump unveiled his self-described “reciprocal” tariffs. Prices fell in the days following, closing at nearly US$2,982 Monday.

A rebound could be ahead. Futures jumped up to over $3,032 Tuesday morning.

Interest in buying gold typically spikes in times of uncertainty, as anxious investors seek a “safe haven” for parking their money. Many of Trump’s previously-imposed tariffs have helped fuel gold’s gains in recent months, even amid stock market turmoil. But precious metals are also volatile assets, so the future is never promised.

The Associated Press

Levi Strauss says any price hikes to be `surgical’

Levi Strauss executives said on a conference call with investors late Monday said that any price increases it undertakes related to tariffs would be “surgical,” instead of broad-based.

Shares of Levi Strauss rose 9% in early trading after the jeans maker posted better first-quarter profit than Wall Street forecast and said it expected “minimal” impact from tariffs in the second quarter.

“Most of the product for spring, early summer is already in the U.S.,” said chief financial officer Harmit Singh.

Just how much President Donald Trump’s widespread tariffs would affect pricing has been a major concern for investors and analysts because tariffs generally act as a tax that gets passed on to consumers.

Levi earned 38 cents-per-share in the first quarter, easily topping the 28 cents-per-share that analysts forecast.

The Associated Press

Tesla’s decline far outpaces S&P 500 average

Tesla stock market value has lost nearly US$400 billion since the S&P 500 hit a peak on Feb. 19, a stunning 35% plunge. The index, by contrast, has fallen 17%.

Investors pushed Tesla stock to a record high after Donald Trump was elected on hopes Musk’s close ties would help the company. Instead, car buyers angry at Musk’s support for Trump and other right-wing politicians have boycotted his company.

A passing driver signals support to people protesting outside a Tesla dealership as part of a coordinated international day of “Tesla Takedown” protests, Saturday, March 29, 2025, in Miami. (AP Photo/Rebecca Blackwell)

A sharp decline Monday put Tesla’s stock at $233.29 and below its price on March 19, a key date. That is when Commerce Secretary Howard Lutnick made a surprising endorsement, urging Fox TV viewers to buy the stock in violation of a federal law banning government officials from endorsing companies.

Shares recovered somewhat in premarket trading Tuesday.

The Associated Press

Dow Jones up at Tuesday’s open

The Dow Jones Industrial Average was up more than three per cent shortly after this morning’s open.

It marks a departure from recent trading days, which were plagued by volatility as investors reacted to U.S. President Donald Trump’s wide-ranging tariffs.

Luca Caruso-Moro, digital breaking news assignment editor

South African farmers say tariffs threaten 35,000 jobs in citrus sector

The Citrus Growers’ Association of Southern Africa say reciprocal tariffs will deeply damage to South Africa’s largest agricultural export.

The Association said Tuesday the tariffs - due to come into effect on Wednesday would threaten 35,000 jobs in the sector.

It said the tariffs would likely make South African citrus fruits cost $4.25 more per carton for American consumers.

The Associated Press\

Australian PM and opposition leader lock horns over who’s best to deal with Trump

Australia’s prime minister and opposition leader have argued over who would best deal with U.S. President Donald Trump in the first debate ahead of federal elections on May 3.

Center-left Labor Party Prime Minister Anthony Albanese said the 10% tariff the United States imposed on Australian imports would pose a challenge but noted that “Australia got the best deal of any country on the planet.”

Conservative Liberal Party leader Peter Dutton said Australia negotiated a better deal during the first Trump administration, when it exempted Australian steel and aluminum imports from U.S. tariffs.

Dutton added that the prime minister “should have the ability and the strength of character to be able to stand up against bullies, against those who would seek to do us harm.”

Albanese said he would not allow the tariff dispute to disrupt Australia’s agreement with the United States and Britain that will deliver an Australian fleet of submarines powered by U.S. nuclear technology.

A second debate is on April 16.

The Associated Press

Sri Lanka launches trade talks with US to ease tariff burden

Debt-stricken Sri Lanka says it has initiated trade talks with the U.S. to ease the new tariff hikes that could burden its already fragile economy.

Sri Lanka is struggling to emerge from a devastating economic crisis and a 44% tariff increase makes it among the worst-hit countries.

On Tuesday, Economic Development deputy minister Anil Jayantha told parliament that Sri Lanka government is in “continuous dialogue with the White House and U.S. trade representative office.”

The trade deficit favors Sri Lanka which exports nearly $ 3 billion-worth of goods to the U.S which only exports a tenth of that to the southeast Asian nation. Most of Sri Lanka’s exports include garments tea, fish and rubber.

Jayantha told parliament officials discussed “possible mitigation options to reduce this trade deficit” without giving further details.

Meanwhile, Sri Lankan president Anura Dissanayake has written a letter to president Donald Trump, “highlighting the possible ways of mitigating the things, action that we can take and requesting for collaboration to reduce tariff,” said Jayantha.

The Associated Press

Indonesian president pledges to bolster economy to withstand U.S. tariff

Indonesia’s President Prabowo Subianto vowed to build the country’s economy with the goal of standing on “our own feet” as his administration scrambles to contain market jitters following an American decision to impose a 32% import tariff on the country’s goods.

He met investors, market players and economists in Jakarta on Tuesday to formulate how to strengthen Indonesia’s economic resilience.

“What is happening now, the world is in turmoil due to the world’s strongest economy country making policies to increase tariffs so high for many countries,” Subianto said in his opening speech at the meeting. He said the resulting uncertainty underlined the need to “rely more on ourselves to build our economy with our own feet.”

During the meeting, Chief Economic Minister Airlangga Hartarto emphasized that the Indonesian government will not take any retaliatory measures and has sent a request letter for negotiations on the reciprocal tariff policy through the United States Trade Representative the Secretary of Commerce.

“What America wants is a balancing of the trade balance,” Hartarto said, “We will increase our purchase of American products.”

The Associated Press

World shares and U.S. futures advanced, led by gains in Tokyo

World shares and U.S. futures advanced Tuesday, led by gains in Tokyo where the Nikkei 225 shot up just over 6% as markets calmed somewhat. The modest rebound for most markets followed a wild day on Wall Street, where stocks careened after Trump threatened to crank his double-digit tariffs higher.

Germany’s DAX gained 0.9% to 19,975.81 while the CAC 40 in Paris was up 1.3% at 7,018.79. Britain’s FTSE 100 also picked up 1.3%, to 7,804.73.

The future for the S&P 500 gained 1.5% early Tuesday while that for the Dow Jones Industrial Average was up 1.9%.

In Tokyo, the Nikkei 225 closed a smidgen over 6% higher, at 33,012.58.

Hong Kong also recovered some lost ground, but nothing close to the 13.2% dive Monday that gave the Hang Seng its worst day since 1997, during the Asian financial crisis.

The Hang Seng gained 1% to 20,036.03. The Shanghai Composite index jumped 1.4% to 3,140.15 after the government investment fund Central Huijin directed state-owned companies to help support the market with share purchases.

Full story on BNNBloomberg.ca

Pakistan markets show slight recovery

The Pakistan Stock Exchange recovered 1.5% on Tuesday after going down 3.3% overall the previous day.

The latest development comes a day after Pakistani stocks went down, with Islamabad facing 29% tariffs from the U.S.

The improvement in the stock market came after authorities said the U.S. Secretary of State Marco Rubio had spoken with Pakistan’s deputy premier Ishaq Dar about economic cooperation.

Pakistan plans to send a government delegation to Washington this month to negotiate the issue of tariffs with the administration.

The Associated Press

Von der Leyen urges China to avoid escalating trade war with U.S.

European Commission President Ursula von der Leyen is urging China to avoid escalating a tariff war with the United States and to help ensure that Chinese products don’t flood other markets due to the fallout.

In a phone call with Chinese Premier Li Qiang, von der Leyen “called for a negotiated resolution to the current situation, emphasizing the need to avoid further escalation,” her office said Tuesday.

She “underscored the vital importance of stability and predictability for the global economy,” and said that it was up to Europe and China “to support a strong reformed trading system, free, fair and founded on a level playing field.”

The commission negotiates trade deals and disputes on behalf of the 27 EU member countries. It is setting up a task force to monitor for any dumping as the tariffs hit trade flows.

The Associated Press

China says U.S. doesn’t appear to want ‘sincere dialogue’

China’s Foreign Ministry on Tuesday questioned America’s “willingness for sincere dialogue” and said Beijing would “fight to the end” after Trump threatened to impose more tariffs.

“I think what the U.S. has done doesn’t reflect a willingness for sincere dialogue,” Foreign Ministry spokesperson Lin Jian said at a news briefing.

“If the U.S. really wants to engage in dialogue, it should adopt an attitude of equality, mutual respect and mutual benefit. If the U.S. disregards the interests of both countries and the international community and insists on a tariff war and trade war, China will surely fight to the end,” Lin added.

The Associated Press

Indian foreign minister speaks with Rubio about trade agreement

Indian Foreign Minister S. Jaishankar spoke with his U.S. counterpart, Secretary of State Marco Rubio, late Monday to push for an early conclusion of negotiations over a bilateral trade deal.

The call came days after the U.S. slapped a 26% tariff on Indian imports. India wants to seek concessions as part of the trade deal, the first tranche of which is expected by fall.

Brendan Lynch, a U.S. assistant trade representative, visited India last month to discuss the initial contours of the deal. The U.S is pushing India to grant greater market access for agricultural and dairy products, but New Delhi is reluctant since its farm sector employs the bulk of the country’s workforce and is a main source of family income.

The Associated Press

Malaysia prime minister says ASEAN will send a delegation to Washington

Malaysian Prime Minister Anwar Ibrahim says his government and others in Southeast Asia will send a delegation to Washington to discuss the tariff situation.

In a keynote speech Tuesday at the Association of Southeast Asian Nations’ Investment Conference in Kuala Lumpur, Anwar said ASEAN leaders would try to build a consensus and present a united response to Trump’s tariffs.

“We do not believe in megaphone diplomacy,” Anwar said. “As part of our soft diplomacy of quiet engagement, we will be dispatching together with our colleagues in ASEAN our officials in Washington to begin the process of dialogue.”

The Associated Press

Indonesia markets plunge after holiday break

Indonesia’s stock market plunged 9.2% in early trading on Tuesday, as markets in the Southeast Asian country reopened after an extended Eid holiday break.

Its currency, the rupiah, also sank to a record low, hitting 16,846 against the U.S. dollar.

The Indonesia Stock Exchange halted trading for 30 minutes following the steep decline. When it resumed, shares recovered slightly but remained down nearly 8%.

Hong Kong leader calls tariffs ‘bullying’ and ‘ruthless behavior’

Hong Kong leader John Lee has described the latest U.S. tariffs as “bullying,” saying the “ruthless behavior” has damaged global and multilateral trade and brought great risks and uncertainties to the world.

At a news conference on Tuesday, Lee pledged to take several steps to address the tariffs. He said the city would seize more opportunities in China’s development, sign more free trade agreements with other economies, and continue to push for Hong Kong’s accession to the 15-nation Regional Comprehensive Economic Partnership.

He also vowed to advance international financial cooperation, attract foreign companies and capital to Hong Kong, and support Hong Kong enterprises to cope with the tariff impacts.

The Associated Press

New Zealand prime minister criticizes tariffs as a ‘shift away from agreed rules’

New Zealand Prime Minister Christopher Luxon has delivered stronger criticism of the U.S. tariffs, decrying what he says is a “shift away from agreed rules” of trade and warning of the risk of “backsliding into a global trade war.”

“A trade war is in nobody’s interests,” Luxon told reporters in Wellington on Tuesday. “It will slow global growth, hurt jobs and reduce the amount of money we have in our wallets.”

He said New Zealand, which is set to receive the 10% baseline tariff rate on goods exported to the U.S., would not impose retaliatory tariffs on the U.S.

The U.S. in January overtook Australia to become New Zealand’s second-largest export partner, behind China, with New Zealand exports largely made up of meat, dairy, wine and agricultural machinery.

The Associated Press

Asian markets open higher after volatile session a day earlier

Asian markets opened higher on Tuesday, with Japan’s Nikkei 225 benchmark shooting up more than 6% after it fell nearly 8% a day earlier.

The rebound followed a wild day on Wall Street as U.S. stocks careened after Trump threatened to crank his double-digit tariffs higher.

Hong Kong also recovered some lost ground, but not anything close to its 13.2% dive on Monday that gave the Hang Seng its worst day since 1997 during the Asian financial crisis. The Hang Seng gained 1.7% to 20,163.97 on Tuesday morning.

The Shanghai Composite index jumped 0.8% to 3,121.72, South Korea’s Kospi gained 1.6% to 2,364.22, and the S&P/ASX 200 also was up 1.6%, at 7,462.60.

The Associated Press

Japan’s prime minister meets with Cabinet after call with Trump

Japanese Prime Minister Shigeru Ishiba met with his Cabinet on Tuesday to discuss how to respond to the U.S. tariffs, after he spoke by phone late Monday with Trump.

Ishiba has appointed Ryosei Akazawa, the economy revitalization minister, as Japan’s trade negotiator with the U.S., Chief Cabinet Secretary Yoshimasa Hayashi said Tuesday. The appointment was based on an agreement between Ishiba and Trump, Hayashi added.

Japan’s prime minister also dispatched senior officials from the foreign and trade ministries to Washington to follow up on his conversation with Trump.

Ishiba is considering traveling to Washington for direct talks with Trump at an appropriate time, Hayashi said.

At Tuesday’s Cabinet meeting, Ishiba instructed his ministers to fully examine and mitigate the tariffs’ impact on Japanese industries and pursue diplomatic efforts to address them. Ishiba told his ministers the tariffs would be a blow to all industries. He said the auto industry is essential to Japan, while steel and aluminum are also key to its economy.

The Associated Press