Asian, US stocks dive as Donald Trump’s global tariff deadline nears
US stock futures and Asian markets tumbled on Wednesday after the White House pledged to go ahead with sweeping tariffs on global trade partners, including a hefty 104% levy on China.
A photograph of US President Donald Trump sits on a desk as traders work on the floor of the New York Stock Exchange (NYSE) at the opening bell on April 8, 2025, in New York City.(AFP)
Stocks sank and Treasuries sold off as financial markets were hit by fresh turmoil after Donald Trump ratcheted up the pressure on China and pledged to push ahead with sweeping global tariffs.
All three major US indices finished firmly in the red, with the S&P 500 shedding 1.6 per cent to 4,982.77, its first close below 5,000 points in nearly a year.
The Dow Jones Industrial Average ended down 0.8 per cent at 37,645.59, a swing of about 1,780 points below its session peak, while the tech-rich Nasdaq Composite Index shed 2.2 per cent to 15,267.91, reported AFP.
S&P 500 companies have lost $5.8 trillion in stock market value since President Donald Trump’s tariff announcement last Wednesday, the deepest four-day loss since the benchmark was created in the 1950s, according to Reuters.
Also Read | Donald Trump admin says India among 50 nations willing to lower trade tariffs
All 11 sectors in the S&P 500 finished the day in the red, while most of the Dow was also in negative territory. The big losers in the blue-chip index included Apple, which was down 5% and Nike, which lost 4.2%.
“The volatility reflects the new situation in which no one knows what the rules of road are, or even what the desired destination is,” Que Nguyen at Research Affiliates LLC told Bloomberg.
“Until investors reset expectations or those rules and goals are better understood, markets will continue these wild swings between hope and fear,” she added.
Benchmark gauges fell from Australia to Hong Kong, while equity-index futures for the S&P 500 dropped more than 1.8%. Oil extended its selloff. The yen gained on haven demand, while the offshore yuan rebounded after sinking to the lowest since it began trading in 2010.
Weak auction demand for Treasuries underlined the cracks in the haven status of US government debt, with 10-year yields surging 35 basis points this week.
104% tariff on China
The White House on Wednesday said that additional US tariffs on Chinese imports are set to reach 104 per cent as Washington doubles down on planned action after Beijing vowed a “fight to the end” on levies.
“104% additional tariffs went into effect at noon eastern time because China has not removed its retaliation. The 104% additional tariff will be collected starting tomorrow April 9th,” the White House said.
The development comes after US President Donald Trump announced on Tuesday that he was awaiting a response from China before implementing duties exceeding 100 per cent, however, other officials in his administration had stated that China will not be prioritized in upcoming trade negotiations.
Also Read | Chinese Premier reacts to Donald Trump’s 104% tariffs: ‘Beijing is equipped to…’
Donald Trump has already imposed a 10 per cent tariff on nearly all imports into the US, and further targeted tariffs, which could reach up to 50 per cent on many trading partners, are set to take effect on Wednesday, April 9.
China, however, had refused to back down from what it calls “blackmail,” vowing to “fight to the end” after Trump threatened to escalate tariffs to as high as 104 per cent in retaliation for China’s reciprocal tariffs announced last week.
(Inputs from agencies)
