Donald Trump's tariffs on numerous economies took effect on Wednesday morning, including a 104 per cent levy on Chinese goods, as the US president introduced a fresh round of tariffs targeting several trade partners.
Import rates to the US from exporters such as the European Union and Japan increased further at midnight ET (5am UK time) on Wednesday, following the implementation of broad 10 per cent tariffs that have shaken the global economy since they took effect over the weekend.
China has been the most affected by the tariffs but has shown no indication of backing down, pledging to continue the trade war "to the end" and vowing countermeasures to protect its interests.
China's retaliatory tariffs of 34 per cent on US goods are set to take effect on Thursday.
Trump's tariffs on numerous economies took effect on Wednesday
REUTERSOther tariffs include rates of 20 per cent on the European Union, 26 per cent on India and 49 per cent on Cambodia.
On Tuesday, Trump stated that his administration was working on "tailored deals" with trading partners, with the White House emphasising a focus on allies such as Japan and South Korea.
His chief trade official, Jamieson Greer, also informed the Senate that countries like Argentina, Vietnam, and Israel had offered to lower their tariffs.
During a dinner with fellow Republicans on Tuesday night, Trump claimed that countries were "dying" to strike a deal, saying: "I'm telling you, these countries are calling us up kissing my ass."
He added: "They ripped us off left and right. But now it's our turn to do the ripping. And I do think that the war with the world, which is not a war at all, because they're all coming here. Japan is coming here as we speak."
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A sell-off resumed across Asian markets on Wednesday, with Japan’s Nikkei dropping more than three per cent, Hong Kong plunging over three per cent, and South Korea’s currency hitting a 16-year low.
Government bonds also experienced significant losses.
Australian shares lost billions in value, while Taiwan’s stock market fell 5.8 per cent in afternoon trading.
Trillions of dollars in equity value have been wiped off global markets in recent days.
Foreign exchange markets also saw turbulence, with the South Korean won hitting its lowest level against the dollar since 2009
REUTERS
Foreign exchange markets also saw turbulence, with the South Korean won hitting its lowest level against the dollar since 2009.
China’s offshore yuan also reached an all-time low against the US dollar, as Beijing’s central bank weakened the yuan for the fifth consecutive day, according to Bloomberg.
Oil prices plummeted, with West Texas Intermediate closing below $60 for the first time since April 2021.
India’s central bank lowered interest rates, citing “challenging” global conditions.
Indian pharmaceutical stocks also fell 1.7 per cent on Wednesday. The US accounts for a third of India’s total pharma exports.
Indian pharmaceutical stocks also fell 1.7 per cent on Wednesday
GETTY
The European Union has sought to de-escalate tensions, with EU chief Ursula von der Leyen urging against worsening the trade conflict during a call with Chinese Premier Li Qiang.
She emphasised the importance of stability for the global economy and “the need to avoid further escalation,” according to an EU statement.
EU member states are set to vote today on a list of US goods that will be subject to retaliatory tariffs.
The proposed targets, which would face mainly a 25 per cent levy, include items ranging from almonds and yachts to diamonds, dental floss, soybeans, and steel parts.
However, bourbon and wine have been excluded from the list.
