BEIJING: China said on Saturday (Apr 5) “the market has spoken” in rejecting US President Donald Trump’s tariffs, and called on Washington for “equal-footed consultation” after global markets’ dramatic reaction to the trade levies, which drew Chinese retaliation. Several Chinese commerce associations in industries from healthcare and textiles to electronics also issued statements on Saturday calling for unity in exploring alternative markets and warning that the tariffs would worsen inflation in the US. “The market has spoken,” Chinese foreign ministry spokesperson Guo Jiakun said in a post on Facebook on Saturday morning. He also posted a picture capturing Friday’s falls on US markets. Trump introduced additional 34 per cent tariffs on Chinese goods as part of steep levies imposed on most US trade partners, bringing the total duties on China this year to 54 per cent. Trump also closed a trade loophole that had allowed low-value packages from China to enter the US duty-free. This prompted sweeping retaliation from China on Friday, including extra levies of 34 per cent on all US goods and export curbs on some rare earths, escalating the trade war between the world’s two largest economies. However, Hong Kong Financial Secretary Paul Chan told public broadcaster RTHK that Hong Kong would not impose separate countermeasures, citing the need for the city to remain “free and open”. Global stock markets plummeted following China’s retaliation and Trump’s comments on Friday that he would not change course, extending sharp losses that followed Trump’s initial tariff announcement earlier in the week and marking the biggest losses since the pandemic. For the week, the S&P 500 was down 9 per cent. “Now is the time for the US to stop doing the wrong things and resolve the differences with trading partners through equal-footed consultation,” Guo wrote in English. China’s chamber of commerce representing traders in food products called on “China’s food and agricultural products import and export industry to unite and strengthen cooperation to jointly explore domestic and foreign markets”. The metals and chemicals traders’ chamber said the tariffs “will push up the import cost for US importers and the consumption cost for consumers, exacerbate domestic inflation in the US, and increase the possibility of a US recession”. Trump’s broadest tariffs to date took effect on Saturday, with a 10 per cent “baseline” tariff hitting most US imports except goods from Mexico and Canada. Dozens of economies, including China, face even higher rates from Apr 9. The US also said on Wednesday that it will end the tax exemption for packages worth less than US$800 from the Chinese mainland and Hong Kong, starting May 2. Those products will be subjected to a duty rate of 30 per cent of their value, or US$25 per item. The China Express Association, on behalf of China’s postal and express delivery enterprises, expressed firm opposition to the US move to cancel duty-free treatment for low-value packages from China, according to its statement issued on Thursday. The association said that cross-border e-commerce packages from China have helped American consumers meet their personalised consumption needs, reduce their living costs and improve their quality of life, adding that the move will harm the interests of consumers in the United States, especially families and young people, who rely on cross-border e-commerce shopping. “We hope the United States will correct its wrong practice and take necessary measures to create a fair and predictable policy environment for the development of cross-border e-commerce and delivery,” the association said.

US stocks were battered by a steep sell-off Friday after China retaliated against the United States for President Donald Trump’s tariffs in a tit-for-tat that escalates a global trade war. The Dow plunged by 2,231 points, or 5.5%. The broader S&P 500 was 5.97% lower. The tech-heavy Nasdaq Composite was 5.82% lower. The Nasdaq closed in a bear market for the first time since 2022, down more than 20% from its record high in December. The Dow closed in correction, down more than 10% from its record high in December. It is the first time the Dow has closed in correction since March 7, 2022, according to Sam Stovall, chief investment strategist at CFRA Research. The Dow posted its biggest back-to-back losses since March 2020, during the onset of the Covid-19 pandemic. The S&P 500 shed $5.06 trillion in market value across the past two days, according to Howard Silverblatt, senior index analyst at S&P Dow Jones Indices. The benchmark index, which entered correction Thursday, sank more than 10% over the past two days. Investors have been fearful that a dramatic escalation of a trade war could plunge the US and global economies into a recession. JPMorgan analysts said Thursday that America’s economy and the broader world economy both had a 60% chance of sinking into a recession this year. The analysts also said odds of a recession would rise if countries began to retaliate against the United States — and China did so Friday. Retaliation raises the risk of further escalation and could diminish hopes for negotiation. “Markets may actually be underreacting, especially if these rates turn out to be final, given the potential knock-on effects to global consumption and trade,” said Matt Burdett, head of equities at Thornburg Investment Management. “The tariffs have injected a level of uncertainty and volatility we haven’t seen since the early days of the pandemic.” US stocks briefly rallied from their lowest point of the morning after Trump posted on social media that he had a “very productive call” with To Lam, the general secretary of the Communist Party of Vietnam. “(Lam) told me that Vietnam wants to cut their Tariffs down to ZERO if they are able to make an agreement with the U.S. I thanked him on behalf of our Country, and said I look forward to a meeting in the near future,” Trump said. Nike (NKE), which slumped Thursday, rallied 3%. Nike relies extensively on international supply chains and imports from Vietnam, where many of its factories are located. Yet stocks eventually slid to their lows of the day as investors grappled with the extent of Trump’s tariffs and the potential for a slowdown in economic growth. Federal Reserve Chair Jerome Powell said during prepared remarks Friday that inflation could remain elevated because of Trump’s tariffs. “While uncertainty remains elevated, it is now becoming clear that the tariff increases will be significantly larger than expected. The same is likely to be true of the economic effects, which will include higher inflation and slower growth,” said Powell, who spoke at an event just outside Washington, DC. “The size and duration of these effects remain uncertain.”

Tariff anxiety roils Wall Street

Investors Friday morning wrestled with tariff anxiety while also digesting fresh data that showed stronger-than-expected job growth in March. The US economy added 228,000 jobs in March, a significant increase from February’s revised gains of 117,000, according to Bureau of Labor Statistics data released Friday. While job growth beat expectations, tariff angst continues to drive market sentiment. “Unfortunately, the market is no longer focused on the jobs market and focused squarely on tariffs and trade wars as the US plays chicken with the rest of the world, potentially beginning a downward spiral into a worldwide recession,” said Chris Zaccarelli, chief investment officer at Northlight Asset Management. Traders ditched risky stocks, especially tech companies whose products are manufactured overseas and could soon be subject to enormous tariffs. Apple (AAPL), which tumbled more than 9% Thursday, was down another 7.3% Friday. As stock futures tumbled ahead of the opening bell, Trump posted on social media, “To the many investors coming into the United States and investing massive amounts of money, my policies will never change. This is a great time to get rich, richer than ever before!!!” Wall Street’s fear gauge, the Cboe Volatility Index, or VIX, surged 50%. “Extreme fear” was the sentiment driving markets, according to CNN’s Fear and Greed index, which slumped to its lowest level this year as investors braced for an escalating global trade war. And as investors sold stocks, they poured money into traditional safe havens, including government bonds. The 10-year Treasury yield, which briefly fell below 4% Thursday for the first time since October, fell firmly below 4% Friday as investors bought bonds to insulate themselves from a potential economic downturn. Bond prices and yields trade in opposite directions. Gold prices surged above $3,130 a troy ounce Friday morning, setting another record, before sliding to around $3,030. Gold has soared this year as investors seek out safe havens. Investors ditched other commodities, including oil, out of fear that the trade war could send the global economy into a recession. US oil, which plunged nearly 7% Thursday, tumbled another 7.4% to $61.99 a barrel. Brent oil futures, the global benchmark, fell 6.5%. Both US oil and the global benchmark settled at their lowest level since 2021.

China retaliates against Trump’s tariffs

China announced sweeping 34% tariffs on all US goods starting April 10, a major escalation of a trade war that has been raging for years between the world’s two largest economies. But the tit-for-tat tariff escalation kicked into high gear after Trump took office for the second time in January. Trump in February placed an additional 10% tariff on all Chinese goods imported to the US and doubled that rate to 20% in March. On Wednesday, Trump announced that tariffs on China would rise to 54%. That’s on top of existing import taxes, which he and former President Joe Biden already had in place on the country. So the effective tariff rate America imposes on Chinese goods will be well above 54% starting April 9. Markets have been on edge: The Russell 2000, which tracks smaller companies, entered a bear market Thursday. Stocks tumbled all over the world Friday. Europe’s benchmark STOXX 600 index dropped 5.12%, and London’s benchmark FTSE 100 index fell 4.95%, both posting their biggest single-day declines since 2020. Japan’s Nikkei 225 index fell 2.75% after falling 2.77% on Thursday. On Thursday, the Dow fell more than 1,600 points, or nearly 4%. The S&P 500 fell nearly 5% and the Nasdaq plunged nearly 6%. Each of the three major US indexes recorded its worst performance in about five years, since the Covid-19 pandemic. “This is just the tip of the spear. Next it’s going to be retaliation from the EU and other nations. Banks, airlines and other service sector firms are going to get targeted,” said RSM’s Joe Brusuelas. “The Chinese are calling Trump’s bluff.” UBS on Friday lowered its year-end target for the S&P to 5,800 from 6,400 and said the US economy could enter recession in the near-term due to the impact of Trump’s tariffs. “In the near term, we believe the effective tariff rates could be higher still, and without President Trump taking active steps to reduce tariffs over the next three to six months, we are likely to enter a downside scenario, including a meaningful US recession and lower equity markets,” said Solita Marcelli, chief investment officer for the Americas at UBS Global Wealth Management, in a note Friday.

Negotiations or more tariffs?

Trump said Thursday after the market close that he was open to negotiation on trade. He cited TikTok as an example, hoping China would agree to a sale of the popular social media app to a potential US buyer in exchange for lower tariffs. “Every country has called us. That’s the beauty of what we do, we put ourselves in the driver’s seat,” Trump told reporters aboard Air Force One Thursday. “As long as they are giving us something that’s good. For instance, with TikTok as an example, we have a situation with TikTok where China will probably say, ‘We’ll approve a deal, but will you do something on the tariffs?’ The tariffs give us great power to negotiate. They always have.” Some countries say they’re in active negotiations with the United States to lower the tariff barriers Trump announced this week. The United Kingdom, for example, said it is in talks with the United States to strike an economic agreement, British Foreign Minister David Lammy said on Friday. But other countries chose to retaliate. Canada on Thursday announced retaliatory tariffs on some US-made cars. France’s finance minister said the European Union was not considering reciprocal tariffs to respond to the Trump administration’s tariffs, because they could hurt European consumers, but the EU could target individual US companies, Eric Lombard said in an interview Friday with CNN affiliate BFMTV. The New York Times on Thursday reported the EU was considering penalties against Tesla. Trump on Thursday dismissed the massive declines in the stock market, saying it’s “to be expected” and that the economy is in a “transition period.” He called the economy a “sick patient.”

Stocks tumbled on Friday, adding to the previous day’s massive losses and capping off one of the worst weeks on Wall Street since the turn of the century. Market participants started the week cautiously optimistic that the reciprocal tariffs that were slated to be announced Wednesday would give businesses and investors some much-needed clarity on U.S. trade policy. But investors were caught off guard by the sheer size and scope of the taxes, which are expected to lift the U.S. effective tariff rate to its highest level in more than a century. Economists warn tariffs of that magnitude could slash economic growth and reignite inflation. This week’s market sell-off was one of the most punishing in recent memory. Here are some data points that put this very bad week in context:

• The S&P 500 fell 10.5% across Thursday and Friday, the index’s worst 2-day stretch since March 2020 and its third-worst since the turn of the century. The index’s 9.1% loss this week ranks as the seventh-worst week in the last 25 years.
• The Dow had its sixth-worst week of the 21st century; it fell 7.9% over the week and 9.3% in the last two days.
• The Dow shed 2,231 points on Friday, its third-largest one-day point decline on record.
• The Nasdaq Composite has dropped 11.4% since Trump’s tariff announcement, also its worst 2-day stretch since March 2020.
• Shares of Apple (AAPL), the world’s most valuable company, have lost 15.9% of their value since Wednesday’s close, their worst 2-day stretch since September 2008. The rout wiped more than half a trillion dollars off the iPhone maker’s market capitalization.
• 31 companies in the S&P 500 lost more than 20% this week; 247 companies, or nearly half the index, fell 10% or more.
• Just 21 stocks in the benchmark index—mostly healthcare companies and utilities—finished the week higher; on Friday, only 14 stocks rose.
• Nike (NKE) rose 3% Friday, making it the only stock in the blue-chip Dow index to close in the green. Still, shares finished the week 10% lower.
• Even companies with little to no direct tariff exposure were hammered. Palantir (PLTR), the software company that derives most of its revenue from the federal government, tumbled 14% this week. DoorDash (DASH) and Netflix (NFLX), despite not making or selling any physical products subject to tariffs, dropped about 11% and 8%, respectively.

WASHINGTON, April 5 (Reuters) – U.S. customs agents began collecting President Donald Trump’s unilateral 10% tariff on all imports from many countries on Saturday, with higher levies on goods from 57 larger trading partners due to start next week. The initial 10% “baseline” tariff took effect at U.S. seaports, airports and customs warehouses at 12:01 a.m. ET (0401 GMT), ushering in Trump’s full rejection of the post-World War Two system of mutually agreed tariff rates. “This is the single biggest trade action of our lifetime,” said Kelly Ann Shaw, a trade lawyer at Hogan Lovells and former White House trade adviser during Trump’s first term. Shaw told a Brookings Institution event on Thursday that she expected the tariffs to evolve over time as countries seek to negotiate lower rates. “But this is huge. This is a pretty seismic and significant shift in the way that we trade with every country on earth,” she added. Trump’s Wednesday tariff announcement shook global stock markets to their core, wiping out $5 trillion in stock market value for S&P 500 companies by Friday’s close, a record two-day decline. Prices for oil and commodities plunged, while investors fled to the safety of government bonds. Among the countries first hit with the 10% tariff are Australia, Britain, Colombia, Argentina, Egypt and Saudi Arabia. A U.S. Customs and Border Protection bulletin to shippers indicates no grace period for cargoes on the water at midnight on Saturday. But a U.S. Customs and Border Protection bulletin did provide a 51-day grace period, opens new tab for cargoes loaded onto vessels or planes and in transit to the U.S. before 12:01 a.m. ET Saturday. These cargoes need arrive to by 12:01 a.m. ET on May 27 to avoid the 10% duty. At the same hour on Wednesday, Trump’s higher “reciprocal” tariff rates of 11% to 50% are due to take effect. European Union imports will be hit with a 20% tariff, while Chinese goods will be hit with a 34% tariff, bringing Trump’s total new levies on China to 54%. Vietnam, which benefited from the shift of U.S. supply chains away from China after Trump’s first-term trade war with Beijing, will be hit with a 46% tariff and agreed on Friday to discuss a deal with Trump. Canada and Mexico were exempt from both Trump’s latest duties because they are still subject to a 25% tariff related to the U.S. fentanyl crisis for goods that do not comply with the U.S.-Mexico-Canada rules of origin. Trump is excluding goods subject to separate, 25% national security tariffs, including steel and aluminum, cars, trucks and auto parts. His administration also released a list, opens new tab of more than 1,000 product categories exempted from the tariffs. Valued at $645 billion in 2024 imports, these include crude oil, petroleum products and other energy imports, pharmaceuticals, uranium, titanium, lumber and semiconductors and copper. Except for energy, the Trump administration is investigating several of these sectors for further national security tariffs.

Japan stocks led declines in the region on Friday, tracking steep losses on Wall Street after U.S. President Donald Trump’s tariffs rattled global markets. Australia’s S&P/ASX 200 fell 2.44%, sliding into correction territory after declining 11% since its last high in February. Japan’s Nikkei 225 fell 3.04%, while the Topix declined 5.09%. South Korea’s Kospi slipped 1.78% and the small-cap Kosdaq lost 0.87% after the country’s Constitutional Court upheld the impeachment of President Yoon Suk Yeol, ousting him from office. The decision now starts a 60-day countdown where a presidential election must be held to select the next president. Prime Minister Han Duck-soo has been reinstated as acting president in the mean time. Hong Kong and China markets are closed for the Qingming Festival. On Wednesday, Trump unveiled reciprocal tariff rates that over 180 countries and territories will face, raising the risk of a global trade war. U.S. futures fell after Trump’s tariffs led to the largest decline in U.S. equities in five years. Futures tied to the blue-chip index lost 100 points, or 0.3%, after the 30-stock average tumbled more than 1,600 points in the prior session. S&P 500 futures and Nasdaq 100 futures each shed 0.2%. Overnight in the U.S., the three major averages plummeted. The S&P 500 slid back into correction territory, dropping 4.84% to 5,396.52. The Dow Jones Industrial Average tumbled 1,679.39 points, or 3.98%, to close at 40,545.93 and the Nasdaq Composite fell 5.97% to end at 16,550.61, logging its biggest decline since March 2020.

It’s springtime, and “For Sale” signs are popping up in front of homes across the country. But with so much uncertainty in the economy, it’s an open question whether the spring housing market will be hot … or not. Let’s check out the forecast.

Mortgage rates and home prices are both high

It’s certainly not the cheapest time to buy a home. The average 30-year mortgage rate is now 6.65%, down a bit from January, but still pretty high. Many analysts predict that mortgage rates will linger around this level for now, especially since the Federal Reserve has indicated it’s unlikely to cut interest rates until later this year. Selma Hepp, chief economist at real estate analysis firm Cotality, says market volatility could bring down mortgage rates. That’s because mortgages typically follow the yield on 10-year Treasury bonds, which are affected by investors’ worries about the economy. “Because of the concerns around a slowing job market, because of concerns maybe about rising risks of a recession,” Hepp says. But there are other factors keeping mortgage rates high – among them, inflationary policies like tariffs. Another deterrent for buyers is the elevated cost to buy a home. The median home price has shot up 47% in just the last five years.

Good news for buyers: more homes are hitting the market

Last year was the slowest existing home sales market since 1995. It’s wasn’t that people didn’t want to buy — there simply wasn’t much for sale. The big question now is whether a frozen market can begin to thaw. Signs suggest things are starting to shift, with more inventory coming on the market. In February, there were 17% more existing homes for sale compared to last year, followed by a 10% increase in new listings in March compared to a year ago. In the last couple years, as mortgage rates climbed, there’s been concern about a “lock-in effect” causing homeowners with low interest rates to never move. But the recent uptick in listings suggests that as time goes on, people do end up moving. More listings should translate to more sales. Return to office mandates are also spurring some folks to move closer to cities, now that they’ve got to be in the office several days a week. Increased inventory will put buyers on better footing, giving them more options and more leverage. For sellers, more competition could mean they have to be more flexible on price. That’s already starting to happen. Over 17% of active listings included price reductions in March, according to Realtor.com — the highest for any March since 2016.

Economic uncertainty clouds the forecast

Jeremy Masem, 40, is trying to become a homeowner. For the past year, he and his wife have been looking for a home in Fairfield County, Conn. A few weeks ago, they offered $161,000 over a home’s asking price. But their bid still wasn’t enough. This week, they lost again – theirs was one of 17 offers. Masem says they may decide to just keep renting for a while. “I am a little nervous … All the various tariffs,” he says. “What’s going to happen? What’s not going to happen? Maybe just waiting and seeing for another year or two would be in our best interest.” Others may be making that same choice. Pending listings — that is, homes under contract — fell 5.2% year over year in March, according to data from Realtor.com. Those who are worried about losing their jobs might not want to commit to a big down payment right now. “They tend to stay put,” says Hepp at Cotality. “They end up not moving unless they have to.” Also adding to the uncertainty is that costs of homeownership that used to be pretty steady, like home insurance or HOA fees, have skyrocketed in some places. That can make buying a home feel like more of a gamble than it used to.

On top of everything else, how agents are paid has changed

Last year, a settlement with the National Association of Realtors led to a few big changes for both buyers and sellers. Before these new rules went into effect, sellers would typically pay both their own agent and the buyers’ agent. Now, that’s no longer a given. It’s up to the seller whether to pay the buyer’s agent—and how much. A second big change is that now buyers who want to work with a real estate agent must sign an agreement that sets the agent’s compensation – before they can go see any homes. So, pretty much the only way to see a home without signing something these days, is to go to an open house –- or represent yourself and reach out to listing agents directly. Many real estate agents say the system really hasn’t changed much. But the new rules mean more things to negotiate amid what can already be a tricky process in a very expensive transaction. “There’s still confusion over who’s paying whose percentage,” says Masem, the Connecticut home shopper. He says the whole process of looking at homes and making offers can be draining and time-consuming. “A lot of our free time is spent looking at this stuff,” says Masem. “I feel like we’re missing out on just regular things we would like to do.”

Tesla sales plunged 13% in the first three months of this year, the largest drop in deliveries in its history, as backlash against CEO Elon Musk and growing competition took a large bite out of demand for its EVs. Tesla reported Wednesday that it delivered 336,681 cars in the quarter, 50,000 fewer vehicles compared to the first three months of last year. The results were the company’s worst sales in nearly three years. Tesla has faced protests outside its showrooms from those opposed to the actions of Musk in one of his other roles as the head of the Department of Government Efficiency, and the policies of Donald Trump’s presidential administration. There have also been instances of vandalism against Tesla facilities, including its charging stations, as well as some cars. All these incidents may have discouraged some potential Tesla buyers from going ahead with their purchases. But last year, Tesla reported its first annual decline in sales, which accelerated in the first quarter.The plungewas worse than expected by Tesla analysts, who had forecast quarterly sales as low as 350,000.Then Tesla shares, which nearly doubled in value after the presidential election on hopes that Musk’s close ties to Trump would result in policies that were advantageous to the company, have lost 44% of their value since hitting an all-time high in December. Shares of Tesla (TSLA) fell about 2% in early trading following the sales report, but rebounded sharply on a Politico report that Musk will be stepping back from his formal role in the Trump administration but may stay on as an informal adviser.

Musk ‘brand tornado crisis’ hits sales

Analysts continue to worry that Musk’s actions elsewhere are hurting Tesla. “The Street and us knew a bad 1Q was coming but this was even worse than expected,” said Dan Ives of Wedbush Securities, who has been a bull on Tesla, in a note to clients Wednesday. “This quarter was an example of the damage Musk is causing Tesla. This continues to be a moment of truth for Musk to navigate this brand tornado crisis and get onto the other side of this dark chapter for Tesla.” With his high profile, confrontational statements and postings on social media, Musk has become a lightning rod for people opposed to the policies of the Trump administration. A CNN poll last month found just 35% of Americans express a positive view of Musk, with 53% rating him negatively, making him both better known and more substantially unpopular than Vice President JD Vance (whom 33% of Americans rate favorably and 44% unfavorably.) Those negative opinions of Musk are bleeding over into negative views of Tesla, especially among those whoidentify as liberals. Those Americans are a segment of the car buying market most likely to be interested in buying a green electric vehicle. And polling indicates Tesla is losing favor. A February poll by Morning Consult shows that nearly 32% of US buyers “would not consider” buying a Tesla. That’s up from 27% in a Morning Consult survey a year ago, and 17% in 2021. S&P Global Mobility, which tracks sales on a state-by-state basis, said there has been a big change in customer loyalty between so-called “blue states,” which have voted for a Democrat in the last four presidential elections, and “red states” where Republicans won. In blue states, the percentage of current Tesla owners buying another Tesla fell to 65% at the end of 2024 from 72% the year before. Meanwhile, repeat Tesla buyers in red states edged up very slightly from 47.6% to 48.2% during the same time period.

Problems with sales outside United States

Tesla does not break out its sales by market. But sales fell 49% in Europe alone in the first two months of the quarter, according to the European Automobile Manufacturers’ Association, even as EV sales overall grew 28% on the continent. That may be due to opposition to Musk in Europe, thanks to his vocal support of far-right political parties in Germany and the United Kingdom. But even without the political controversy, Tesla is facing headwinds due to growing competition from other automakers, particularly those in China. China is the largest market for EVs and Tesla’s second largest market, after the United States. Chinese automaker BYD reported sales of more than 416,000 pure electric passenger vehicles in the quarter, a 39% rise from a year earlier, once again overtaking Tesla as the world’s largest seller of EVs. BYD has pulled ahead ahead of Tesla in EV sales for a number of quarters in recent years, although Tesla has always maintained the lead in full-year sales. But Tesla is poised to lose that title in 2025, given current sales trends. BYD’s EVs are generally less expensive than Tesla, among other advantages.Earlier this month, BYD unveiled a charging system that it says will give its latest EV model 250 miles of range after plugging in for just five minutes. But despite the competition abroad, BYD and most other Chinese EV makers do not have a presence in the US market.

Asia-Pacific markets plunged on Thursday, after U.S. President Donald Trump imposed hefty reciprocal tariffs on over 180 countries and territories – several of which are in the region. In charts posted on social media, the White House showed the effective tariff rates they claim other countries impose on American goods, including by “currency manipulation and trade barriers.” The White House told CNBC’s Eamon Javers on Wednesday that the new reciprocal rate on China will be added to existing tariffs totaling 20%, meaning the true tariff rate on Beijing under this Trump term is 54%. Meanwhile, goods from India, South Korea and Australia face tariffs of 26%, 25% and 10%, respectively. Chris Kushlis, Chief Emerging Markets Macro Strategist at T. Rowe Price says the fresh tariffs “represent a significant increase in tariffs on Asian exports, and arguably more than anticipated by the market.” The U.S. accounts for approximately 15% of exports from the region, meaning that tariff increases ranging between 20% and 35% “would pose a meaningful headwind to growth this year, especially for the more open trade-oriented economies,” he noted. “Many Asia economies have a relatively high proportion of their export value added that ends up in the US, so the broad application of tariffs globally will hinder effects to redirect trade,” Kushlis added. Japanese markets led losses in Asia. The benchmark Nikkei 225 was down 2.95%, paring losses of over 4% at the open, while the broader Topix index was down 3.30%, also paring losses of over 4%. Hong Kong’s Hang Seng Index fell 1.51% while Mainland China’s CSI 300 was down 0.41% Over in South Korea, the Kospi index fell 1.11%, paring losses from over 3%, while the small-cap Kosdaq was down 0.21%. Australia’s S&P/ASX 200 was down 1.07%. Gold prices hit a record high and were trading at $3,133.57 per ounce as at 10.54 a.m. Singapore time, as investors flocked to the precious metal. U.S. futures cratered as Trump’s sweeping tariffs of at least 10% and even higher for some countries, raised the risks of a global trade war that would adversely affect the already slowing U.S. economy. Overnight stateside, stocks climbed in yet another volatile session. The S&P 500 advanced 0.67% to close at 5,670.97, while the Nasdaq Composite added 0.87% and ended at 17,601.05. The 30-stock Dow Jones Industrial Average added 235.36 points, or 0.56%, and settled at 42,225.32. Shares of Tesla climbed 5.3%, rising on news that President Trump has signaled to his cabinet that Elon Musk will be stepping back

NEW YORK, April 1 (Reuters) – Oil prices edged lower on Tuesday as traders braced for reciprocal tariffs that U.S. President Donald Trump is due to announce on Wednesday, which could intensify a global trade war. However, Trump’s threats to impose secondary tariffs on Russian oil and to attack Iran fueled supply worries, limiting losses. Brent futures settled down 28 cents, or 0.37%, at $74.49 a barrel. The session high was above $75 a barrel. U.S. West Texas Intermediate crude futures fell 28 cents, or 0.39%, to $71.20. On Monday, the contracts settled at five-week highs. The White House provided no details about the size and scope of tariffs that it confirmed Trump will impose on Wednesday. “The market is getting a little jittery with less than 24 hours to go,” said Bob Yawger, director of energy futures at Mizuho. “We may lose some Mexican, Venezuela and Canadian supplies, but there is definitely a chance that demand destruction could outpace those barrels,” he added. A Reuters poll of 49 economists and analysts in March projected that oil prices would remain under pressure this year from U.S. tariffs and economic slowdowns in India and China, while OPEC+ increases supply. Slower global growth would dent fuel demand, which might offset any reduction in supply due to Trump’s threats. “While stricter sanctions on Iran, Venezuela and Russia could constrain global supply, the U.S. tariffs are likely to dampen global energy demand and slow economic growth, which in turn will affect oil demand further out on the curve,” SEB analyst Ole Hvalbye said. “As a result, betting on a clear direction for the market has been – and remains – challenging.” Trump on Sunday said he would impose secondary tariffs of 25% to 50% on Russian oil buyers if Moscow tried to block efforts to end the war in Ukraine. Tariffs on buyers of oil from Russia, the world’s second largest oil exporter, would disrupt global supply and hurt Moscow’s biggest customers, China and India. Trump threatened Iran with similar tariffs and also with bombings if Tehran did not reach an agreement with the White House over its nuclear program. Prices found some support after Russia ordered Kazakhstan’s main oil export terminal to close two of its three moorings amid a standoff between Kazakhstan and OPEC+ – the Organization of the Petroleum Exporting Countries, plus allies led by Russia – over excess production. Kazakhstan will have to start cutting oil output as a result, two industry sources told Reuters. Another source said repair work at the Caspian Pipeline Consortium terminal will take more than a month. The market will watch an April 5 OPEC+ ministerial committee meeting to review policy. Sources told Reuters OPEC+ was on track to proceed with a production hike of 135,000 barrels per day in May. OPEC+ had agreed to a similar hike in production for April.

The S&P 500 climbed on Tuesday in another volatile session as the market awaited clarity from President Donald Trump regarding his tariff policy rollout. Wall Street also faced pressure from weaker-than-expected economic data. The broad market index added 0.38% to close at 5,633.07, while the Nasdaq Composite gained 0.87% and ended at 17,449.89. The Dow Jones Industrial Average slipped 11.80 points, or 0.03%, to settle at 41,989.96. The S&P 500′s whipsaw moves follow a similar pattern of trading from Monday. At its high on Tuesday, the broad market index climbed 0.7%, but the benchmark was down by nearly 1% at its session low. The consumer discretionary sector was the top performer of the day. Shares of Tesla gained 3.6%, while Nike added 2%. Investors got another sour reading on the economy Tuesday due to the threat of tariffs, with the Institute for Supply Management manufacturing survey coming in lighter than expected and in contraction territory. February’s job openings were also slightly below estimates, the Bureau of Labor Statistics said on Tuesday. Looking ahead, the White House on Wednesday is expected to unveil reciprocal tariffs on goods from virtually all countries. Investors had been hoping for a narrow approach toward administering the levies. The White House on Tuesday asserted that Trump’s tariffs would go into effect “immediately” once they are announced. “The lack of certainty and the shroud of secrecy has been driving the market insane,” said Jay Woods, chief global strategist at Freedom Capital Markets. “We have our correction, [though], so perspective is key.” On Tuesday, The Washington Post reported that the Trump administration is considering implementing tariffs of about 20% to most imports into the U.S. To be sure, the report — which cited three sources familiar with the matter — noted that no final decision had been made. The uncertainty has put stocks on a rollercoaster ride. The S&P 500 on Monday touched a six-month low before recovering. For the first quarter, the index lost 4.6%, while the Nasdaq Composite dropped 10%. That marked the worst quarterly performance for both benchmarks since 2022. The Dow dropped 1.3% during the first three months of the year. “While the higher event risk baked in creates room for a potential relief rally in case of less aggressive tariffs, the risk arguably is still to the downside, with markets likely underpricing the trade risks,” Barclays assistant vice president Anshul Gupta wrote in a Tuesday note.