Trump's tariffs on 7.00 countries, reaching 60% on imports from China, which the United States announced yesterday, came into effect at 104:XNUMX a.m. Greek time, escalating the trade war with the Asian giant.
China was already set to see a 34% tariff hike on Wednesday as part of Donald Trump’s “retaliatory” tariff package. But the president added another 50% after Beijing did not back down from its promise to impose a matching 34% tariff on American goods by noon on Tuesday — bringing the total tariff rate to 84%. That rate comes on top of Chinese tariffs that were already in place before Trump’s second term.
At the same time, the US government says it is ready to start talks with other trading partners that have been targeted by the sweeping tariffs.
Stocks and oil slide again
Asian stocks fell for the fourth time in five days, while oil prices continued their steep decline. In China and Hong Kong, markets were volatile, with signs that state funds were intervening to support the market. Asia-Pacific markets posted strong losses on Wednesday.
Australia's S&P/ASX 200 index fell 1,06% to 7.401,60. In Japan, the Nikkei 225 plunged 3,14%, while the broader Topix index fell 3,26%.
South Korea's Kospi index fell 0,95%, confirming it has entered a bear market, now down 20% from its July high. The small-cap Kosdaq index fell 0,44%.
Hong Kong's Hang Seng sank 3,86%, while the Hang Seng Tech Index fell an impressive 5,42%.
U.S. stocks fell for a fourth straight day on Tuesday after Trump announced tariffs last week, with the S&P 500 closing below 5.000 for the first time in nearly a year. The index is now 18,9% below its most recent high on Feb. 19, close to the 20% decline that defines a bear market.
S&P 500 companies have lost $5,8 trillion in market value since Trump's tariff announcement last Wednesday, the biggest four-day loss since the benchmark index was created in the 1950s, according to LSEG data.
Global markets had previously posted gains on hopes that Trump might be willing to negotiate a reduction in the series of country-by-country and product-by-product trade barriers he has been erecting around the world's largest consumer market.
Oil slides nearly 4%
Oil prices fell to their lowest level in more than four years in early trading on Wednesday, on concerns about looming demand fueled by the escalating tariff war between the United States and China, the world's two largest economies, and rising supply prospects.
Brent crude futures fell $2,13, or 3,39%, to $60,69 a barrel. U.S. West Texas Intermediate crude futures fell $2,36, or 3,96%, to $57,22. Brent hit its lowest level since March 2021 and WTI its lowest level since February 2021.
Tariffs in effect – Talks begin with Japan and South Korea
The government has scheduled talks with South Korea and Japan, two close allies and major trading partners, while Italian Prime Minister Giorgia Meloni is expected to visit next week.
“These are customized, highly customized deals,” Trump said at a White House event, where he signed executive orders aimed at boosting coal production. “We’ve had conversations with many, many countries, over 70, all of them want to be involved. Our problem is we can’t see that many that quickly.”
However, the White House made it clear that country-by-country tariffs, of up to 50%, will still take effect at midnight Tuesday (local time), as scheduled.
Government officials have said they will not prioritize negotiations with the world's number 2 economic power, China.
"Right now, we've been mandated to prioritize our allies and our trading partners, like Japan and South Korea and others," White House economic adviser Kevin Hassett told Fox News.
Source: protothema.gr
