Tariffs from dozens of countries that came into effect on Wednesday, including 104% of goods from China, drastically increased a potential global trade war. The tariffs are held at 12:01 a.m. ET.
Asian financial markets resumed slides, with Tokyo’s Nikkei 225 down 5%.
U.S. stock futures lost for the fifth straight day on Wall Street, with the S&P 500 down 2.17%, the Dow Jones Industrial Average Futures Term was 1.89%, and the Nasdaq Comprehensive Futures fell 2.12% as of 1:20 AM at 1:20 PM.
Since the weekend continued, the global economy has shaken the global economy after the 10% tariff was imposed, with imports from exporters such as the EU or Japan increasing on Wednesday.
China – Washington’s largest economic rival, but also a major trading partner – is the hardest hit.
Mr Trump said Tuesday that his administration is conducting “tailored deals” with trading partners, and the White House said it would prioritize allies such as Japan and South Korea.
His top trade official, Jamieson Greer, told the Senate that Argentina, Vietnam and Israel were those willing to lower tariffs.
The president told a dinner with fellow Republicans Tuesday night that countries were eager to reach a deal.
But Beijing showed no sign of standing, vowing to “end” with the trade war and hoped to defend its own interests.
China’s retaliatory tariffs on 34% of U.S. goods will take effect on Thursday.
The president said his policy would restore lost manufacturing bases in the United States by forcing companies to move to the United States.
However, many business experts and economists question the speed at which this could happen, warning inflation to raise prices.
Mr. Trump said Tuesday that the U.S. “collects nearly $2 billion a day” from tariffs.
He initially announced an additional 34% tariff on Chinese goods.
But Trump added another 50% of his duties after China refuted the same amount of tariffs on its own on U.S. products.
Calculate existing levies implemented in February and March, which will increase the cumulative tariffs on Chinese goods during Trump’s second presidency to 104%.
He insisted that the ball was in a Chinese court, saying Beijing “want to make a bad deal but they don’t know how to start.”
Later on Tuesday, Mr. Trump also said the U.S. would announce major tariffs on pharmaceuticals “soon”.
Canada said its tariffs on certain U.S. auto imports will take effect on Wednesday.
The EU is trying to ease tensions, and group chief Ursula von der Leyen warned not to exacerbate trade conflicts in a call with Chinese Prime Minister Li Qiang.
EU readers said she emphasized stability to the world economy and “further escalation needs to be avoided.”
The Chinese Prime Minister told Von der Leyen that his country could survive the storm, saying “totally confident that he can sustain and healthy economic development.”
EU – Mr Trump criticized its tariff regime – could announce a response it faces to a 20% tax.
In retaliation against the U.S. steel and aluminum tax that came into effect last month, the EU plans to tariffs on U.S. goods from soybeans to motorcycles as high as 25%, according to a document from AFP.
