Earth Science News
TRADE WARS
Stocks tank, havens rally as Trump tariffs fan trade war
Stocks tank, havens rally as Trump tariffs fan trade war
by AFP Staff Writers
Hong Kong (AFP) April 3, 2025

Equity markets suffered a bloodbath Thursday after Donald Trump delivered a "haymaker" blow with sweeping tariffs against US partners and rivals, fanning a global trade war that many fear will spark recessions and ramp up inflation.

Tokyo's Nikkei led an Asian selloff, collapsing more than four percent, while US futures plunged, safe haven gold hit a record high and the yen jumped one percent amid worries that retaliation will send the crisis spiralling.

The panic came after the US president on his so-called Liberation Day unveiled a blitz of levies aimed at correcting trade deficits with other countries following what he says has been years of the United States being "ripped off".

Against a White House backdrop of US flags, Trump announced that "for decades, our country has been looted, pillaged, raped and plundered by nations near and far, both friend and foe alike".

Trump reserved some of the heaviest blows for what he called the "nations that treat us badly," including 34 percent in new levies on rival China, 20 percent on key ally the European Union and 24 percent on Japan.

A number of other countries will face specifically tailored tariff levels, and for the rest, Trump said he would impose a "baseline" tariff of 10 percent. Auto tariffs of 25 percent kicked in on Thursday.

Investors are now steeling themselves for retaliatory measures, with governments making their anger clear.

China vowed "countermeasures" and urged Washington to cancel the tariffs, while calling for dialogue. Japan said the move was "extremely regrettable" and could contravene World Trade Organization rules.

European Union chief Ursula von der Leyen called Trump's announcement a "major blow to the world economy" but vowed the bloc was "prepared to respond".

Thailand said it had a "strong plan" to handle the new US measures while Canadian Prime Minister Mark Carney warned "we are going to fight these tariffs with counter measures. We are going to protect our workers".

Stephen Innes of SPI Asset Management said: "President Trump walked into the Rose Garden and detonated the most aggressive trade shock the market's seen in decades. This isn't a jab -- it's a full-on haymaker."

Wall Street "had talked itself into a softer, more symbolic move. Instead, Trump carpet-bombed the global supply chain".

"This was a 'shock and awe' tariffs campaign, dressed up in 'reciprocity' language but designed to throttle the trade deficit through brute force."

He said the measures meant that inflation risks had surged and economic growth expectations would be cut, with the US Federal Reserve "pinned between a hawkish rock and a deflationary hard place".

Tokyo pared its hefty drop slightly but remained well under pressure, while Hong Kong, Sydney, Seoul, Manila and Bangkok gave up more than one percent. There were also losses in Shanghai, Singapore, Wellington and Mumbai.

Vietnam's stock exchange dived five percent after the country was hit with levies of almost 50 percent.

Wall Street futures were also battered, with the Dow dropping 2.4 percent, the Nasdaq plunging more than four percent and the S&P 500 more than three percent off. European futures were also deep in the red.

Safe havens rallied as traders sought to dump risk assets.

Gold hit a new peak of $3,167.84 and the Japanese yen strengthened to 147.69 per dollar from 150.50 the day before.

Among other currencies, the South Korean won, Vietnamese dong, Thai baht, Malaysian ringgit and Chinese yuan all sank.

US Treasury yields sank to their lowest level in five months -- yields and prices go in opposite directions.

Oil also suffered big losses, with both main contracts down more than two percent on fears that the shock to economies would hit demand.

Among the big losers on the corporate front, Japanese tech giant Sony shed five percent, while its South Korean rival Samsung was almost three percent down.

Car titan Toyota was off more than six percent, Nissan lost more than four percent and Honda was down 1.8 percent. Tokyo-listed tech investment firm SoftBank was off more than three percent.

And Hong Kong-listed e-commerce giants fell after Trump's removal of a duty-free exemption for small parcels from China. Sector leaders Alibaba and JD.com shed around five percent.

Tai Hui of JP Morgan Asset Management said the scale of the measures raised concerns about growth.

"US consumers may cut back on spending due to pricier imports, and businesses might delay capital expenditures amid uncertainty about the tariffs' full impact and potential retaliation from trade partners," he wrote in a note.

- Key figures around 0400 GMT -

Tokyo - Nikkei 225: DOWN 3.4 percent at 34,528.09

Hong Kong - Hang Seng Index: DOWN 1.6 percent at 22,835.91 (break)

Shanghai - Composite: DOWN 0.5 percent at 3,333.09 (break)

Dollar/yen: DOWN at 147.50 yen from 149.39 yen

Euro/dollar: UP at $1.0916 from $1.0814 on Wednesday

Pound/dollar: UP at $1.3068 from $1.2985

Euro/pound: UP at 83.53 pence from 83.33 pence

West Texas Intermediate: DOWN 2.3 percent at $70.06 per barrel

Brent North Sea Crude: DOWN 2.2 percent at $73.33 per barrel

New York - Dow: UP 0.6 percent at 42,225.32 (close)

London - FTSE 100: DOWN 0.3 percent at 8,608.48 (close)

dan/tym

Dow

S&P Global Ratings

Sony

Samsung Electronics

TOYOTA MOTOR

NISSAN MOTOR

HONDA MOTOR

SOFTBANK GROUP

INDEX CORP.

Related Links
Global Trade News

Subscribe Free To Our Daily Newsletters
Tweet

RELATED CONTENT
The following news reports may link to other Space Media Network websites.
TRADE WARS
Stock markets edge up but Trump tariff fears dampen mood
Hong Kong (AFP) April 1, 2025
Asian and European markets squeezed out gains Tuesday, clawing back some of their recent hefty losses, though sluggish sentiment and increased uncertainty saw gold hit another record high as Donald Trump prepares to unveil sweeping tariffs. Investors have been rushing to position themselves for the US president's "Liberation Day" on Wednesday, when he warned he will impose levies on "all countries" for what he has said is years of them ripping off Americans. Trump said Monday he would be "very k ... read more

TRADE WARS
China urges firms to follow laws after Bangkok building collapse

US says team on way to quake-hit Myanmar, defends pace

Thai authorities probe collapse at quake-hit construction site

WHO says Myanmar quake a top-level emergency, seeks urgent funding

TRADE WARS
Kazakhstan discovers its 'largest' rare earths deposit

Scientists build novel quantum material from two extreme compounds

Metamaterials enable ultra-efficient mechanical energy storage

World's third largest steelmaker posts nearly $1 bn loss

TRADE WARS
Deep sea mining impacts visible for 'many decades'

Future of ocean economy at threat, OECD says

3D nanotech blankets offer new path to clean drinking water

Canadian deep sea miner to seek US permit as intl talks drag on

TRADE WARS
Denmark criticises 'tone' of Vance's Greenland comments

Vance says Denmark has 'under-invested' in Greenland

Putin calls dismissing U.S. interest in Greenland a 'profound mistake'

Vance due in Greenland as anger mounts over Trump takeover bid

TRADE WARS
Technology developed by MIT engineers makes pesticides stick to plant leaves

EU unveils plans to help wine sector; France says China grants delay over cognac duties

Hundreds of fungi species threatened with extinction: IUCN

Brought to eel: France busts elver-smuggling ring

TRADE WARS
Rescue hopes fading three days after deadly Myanmar quake

Japan 'megaquake' could kill 298,000 people: govt

7.0-magnitude offshore quake hits near Tonga: USGS

Myanmar junta accused of air strike even after quake

TRADE WARS
Guinea ex-dictator freed from jail after 2009 massacre pardon: junta

Sudan army chief says war will not end until RSF lays down its arms

DRC seeking 'safe exit' for southern African troops

In Gabon, French army base shifts focus as one of last in Africa

TRADE WARS
Colombia's lonely chimp Yoko finds new home in Brazil

Beijing simplifies marriages to encourage Chinese to wed

When did human language emerge?

Study reveals how rising temperatures could lead to population crashes

Subscribe Free To Our Daily Newsletters




The content herein, unless otherwise known to be public domain, are Copyright 1995-2024 - Space Media Network. All websites are published in Australia and are solely subject to Australian law and governed by Fair Use principals for news reporting and research purposes. AFP, UPI and IANS news wire stories are copyright Agence France-Presse, United Press International and Indo-Asia News Service. ESA news reports are copyright European Space Agency. All NASA sourced material is public domain. Additional copyrights may apply in whole or part to other bona fide parties. All articles labeled "by Staff Writers" include reports supplied to Space Media Network by industry news wires, PR agencies, corporate press officers and the like. Such articles are individually curated and edited by Space Media Network staff on the basis of the report's information value to our industry and professional readership. Advertising does not imply endorsement, agreement or approval of any opinions, statements or information provided by Space Media Network on any Web page published or hosted by Space Media Network. General Data Protection Regulation (GDPR) Statement Our advertisers use various cookies and the like to deliver the best ad banner available at one time. All network advertising suppliers have GDPR policies (Legitimate Interest) that conform with EU regulations for data collection. By using our websites you consent to cookie based advertising. If you do not agree with this then you must stop using the websites from May 25, 2018. Privacy Statement. Additional information can be found here at About Us.