Donald Trump tariff live updates: Trump’s 10% global tariff kicks in midnight Saturday

US President Donald Trump is "actively negotiating" tariffs with India, Vietnam and Israel, CNN reported citing officials. This came after Trump administration imposed 10% tariff on all US imports, which is set to take effect this Saturday, with steeper tariffs scheduled to follow on April 9.

Meanwhile, no such confirmation has been made from India's side. The central government has, however, said that it was "carefully examining" the tariff situation.

In his most expansive trade action to date, US president Donald Trump's imposed 10% "baseline" tariff on most imported goods started Saturday at midnight. The sweeping measure, aimed at addressing the country’s trade deficits, spares only Mexico and Canada and was enacted under emergency economic powers. The White House cited a lack of reciprocity and foreign tax policies as justification for the tariffs.

The move is already fueling global tensions. China responded to a separate 34% tariff set to hit its exports next week by announcing identical tariffs on American goods, effective April 10. Beijing also pledged to file a complaint with the World Trade Organisation and restrict exports of rare earth materials essential to technology and medical devices.

While China has moved swiftly, other major US trading partners are still assessing the situation. Meanwhile, concerns are mounting over a possible global economic downturn, as fears of a trade war intensify. President Trump, in a post on social media, warned that “China played it wrong,” and insisted the US would stand firm.

J P Morgan projected that the United States will slip into a recession by the end of 2025, attributing the decline largely to President Donald Trump's newly announced reciprocal tariffs. The forecast comes days after Trump imposed sweeping duties on imports in a bid to rebalance trade ties, with further hikes targeted at countries with major trade deficits with the US, including India.

The US stock markets tanked more than 5 per cent on Friday after Donald Trump's reciprocal tariffs sparked fear among investors of a global economic recession. The Dow Jones index closed with a decline of more than 5.50 per cent, making it one of the highest losses of the index. The S&P 500 index declined approximately 6 per cent by the closing, while Nasdaq tanked 5.73 per cent.

Beijing hit the brakes on the TikTok deal Thursday after Trump announced wide-ranging tariffs around the globe, including against China. ByteDance representatives called the White House to indicate that China would no longer approve the deal until there could be negotiations about trade and tariffs, said the person, who spoke on the condition of anonymity to discuss the sensitive details of the negotiations, reported AP.

Taiwan's Premier Cho Jung-tai announced that USD 2.66 billion (NT$88 billion) would be allocated to support the industrial and agricultural sectors in response to the latest US tariff policy. Speaking at a press conference on Friday, Cho outlined the government's plans to assist export supply chains following US President Donald Trump's decision to impose a 32% reciprocal tariff on Taiwanese imports.

The government will implement 20 measures, with NT$70 billion directed towards the industrial sector to cover administrative costs, boost competitiveness, and stabilise employment. NT$18 billion will be allocated to the agricultural sector. Cho added that the Trade Negotiations Office would continue discussions with the US to strengthen beneficial trade relations, and 190 hotlines would be set up for public assistance. Trump's tariffs, aimed at addressing unfair trade practices, will affect various Taiwanese industries, including electronics, steel, machinery, and auto parts.

US President Donald Trump dismissed market turmoil, reinforcing his hardline trade approach, which he claims will ultimately boost the American economy. In a post on Truth Social, Trump stated: “Big business isn’t worried about the tariffs, because they’re here to stay. They’re focused on the BIG, BEAUTIFUL DEAL, which will SUPERCHARGE our economy.”

His comments followed Wall Street’s steep decline, with the S&P 500 dropping 6%, losing $5 trillion in market value. This was triggered by China’s retaliatory tariffs, set to take effect on April 10. Despite the downturn, Trump remained resolute, urging action and asserting that the economic pain would lead to long-term benefits.

Heading into this year, many US farmers hoped to break even or achieve a small profit by managing their soaring costs. However, they now face the prospect of losing their biggest export market due to China's retaliatory tariffs in response to President Donald Trump's trade policies. "There's just not any margin for error in the current farm economy," said Kentucky farmer Caleb Ragland, president of the American Soybean Association.

Soybean farmers, in particular, are deeply concerned as China has long been the largest buyer of American soybeans, with half of the U.S. crop exported. China has also purchased significant amounts of other US agricultural products, including corn, beef, chicken, and sorghum, contributing to $24.65 billion in US agricultural exports last year. With China imposing a 34% tariff on all U.S. products, these goods will now be much more expensive, pushing crop prices down.

Farmers like Tim Dufault, from northwest Minnesota, are seeing their profits diminish. With prices dropping sharply, Dufault expressed concern that the tariffs could drive many farmers, especially younger ones, out of business. "I just hope to God they can stay in business," he said.

A significant worry is that American farmers may lose market share as China turns to Brazil and other countries for soybeans and other products. While some hope for government aid, many farmers, including Bryant Kagay of Kagay Farms, prefer solutions that do not rely on handouts, urging the government to negotiate better trade deals rather than escalate tariffs.

On Friday, US President Donald Trump spoke with To Lam, General Secretary of Vietnam's Communist Party, who expressed Vietnam's willingness to eliminate tariffs if an agreement could be reached with the US. Trump shared this news on Truth Social, stating, "I had a very productive call with To Lam, who told me that Vietnam wants to cut their tariffs to zero if we can make a deal."

Trump thanked Lam on behalf of the US and expressed eagerness for a future meeting. Vietnam is set to face some of the highest reciprocal tariffs, with rates reaching 46%, starting April 9, according to Trump's new tariff policy. This move could significantly increase the cost of products from Vietnam, such as electronics, clothing, and footwear.

Vietnam has become an important trade partner for the US, with imports rising from $42 billion in 2016 to $137 billion last year. The tariffs are part of Trump's broader strategy to ensure fairness in global trade.

On Friday, China announced it would impose a 34% tax on all US imports starting next week, marking the latest and strongest retaliatory action against US President Donald Trump's tariffs. These tariffs, set to take effect Thursday, mirror the 34% rate Trump recently imposed on Chinese goods. In earlier months, Trump had already enacted two rounds of 10% tariffs on Chinese imports, citing Beijing's role in the fentanyl crisis.

China’s response included additional export controls on rare earth minerals, crucial for tech industries, and a lawsuit at the World Trade Organization (WTO) against Trump’s "reciprocal tariffs." Beijing also suspended imports from six US companies, expanded trade restrictions on 27 firms, and launched an anti-monopoly probe into DuPont China Group Co.

Trump, however, remained defiant, posting on Truth Social that "China played it wrong" and suggested there could still be room for negotiation with China on issues like TikTok. He extended the app's deadline to divest from its Chinese parent company by 75 days.

Experts noted that China’s latest response is more aggressive than previous ones, signaling diminishing hopes for a near-term trade deal. The escalation raises concerns about the potential for further conflict and the challenges of deescalating without losing face on either side.

Mexican stocks dropped by 4.87% on Friday, despite being excluded from US President Donald Trump's list of countries subject to reciprocal tariffs. The decline was driven by widespread panic in global markets over the onset of a potential trade war. Meanwhile, Argentine stocks were hit even harder, plummeting more than 7% following Trump's announcement of extensive import duties on several countries, including Argentina, just two days earlier.

Wall Street's crisis deepened on Friday, with the S&P 500 plummeting 6% after China matched President Donald Trump's tariff hikes, escalating the trade war and heightening fears of a global recession. Despite a stronger-than-expected US job report, markets continued their downward spiral. The Dow Jones dropped 2,231 points, and the Nasdaq fell 5.8%. China’s retaliatory tariffs, including a 34% levy on US imports, further worsened the outlook. While US job growth remained solid, the market’s concerns were future-driven. Trump appeared unfazed, expressing confidence that the tariffs would eventually lead to better trade deals. Meanwhile, the Federal Reserve signaled caution in rate cuts due to inflation risks. The impact was severe on companies reliant on Chinese business, like DuPont and GE Healthcare. Global markets also suffered, with major European and Asian indexes following the US downturn.

Oil prices plummeted to their lowest since mid-2021 on Friday, with Brent crude dropping nearly 8% to $64.59 per barrel and US WTI crude falling 8.8% to $61. This decline followed China's retaliatory tariffs against US President Trump's trade moves. The drop in oil prices gave India an opportunity to reduce fuel costs, potentially easing inflationary pressure from the tariffs. Oil Minister Hardeep Puri noted that if the trend continues, fuel price cuts are likely. Since India imports 85% of its oil, lower prices will reduce the import bill, current account deficit, and support the Rupee, aiding economic stability.

As stock markets plummeted after President Trump's sweeping tariffs, many Republican lawmakers expressed concern but struggled to take action. Despite long-standing GOP principles supporting free trade, most lawmakers refrained from opposing the president, focusing instead on his tax cuts. Senate Majority Leader John Thune and others gave Trump the benefit of the doubt, hoping the tariffs were a negotiating tactic.

Some Republicans, including Kentucky's Mitch McConnell, criticized the tariffs, warning they could harm working families and lead to trade wars. McConnell joined Democrats in passing a resolution to nullify the tariffs, but House Speaker Mike Johnson quickly blocked it from a vote. Meanwhile, a younger faction of Republicans, like Senator Josh Hawley, supported Trump’s “America First” policy, hoping tariffs would revive U.S. manufacturing.

Democrats criticized the tariffs as a tactic to fund tax breaks for the wealthy, with Senate Leader Chuck Schumer accusing Trump of raising costs for American families. Some Republicans, like Senator Rand Paul, feared the tariffs would repeat the mistakes of the Great Depression. In response, Senator Chuck Grassley introduced a bill requiring congressional approval for new tariffs, hoping to rein in the president’s trade powers.

Although many Republicans privately opposed the tariffs, few were ready to directly challenge Trump. The struggle underscored a divide within the party on trade policy and raised questions about the balance of power between Congress and the executive branch.

Two days after announcing tariffs that sent shockwaves through the economy, President Donald Trump remained steadfast in his trade policies, insisting they would not change. From his private Mar-a-Lago estate in Palm Beach, Trump spent the morning at his nearby golf course, continuing his routine while asserting on social media that it was “a great time to get rich.” He waved to supporters lining the streets, embodying his usual weekend presence in the area.

Despite the economic fallout, including fears of a potential recession and rising prices from the tariffs, Trump remained in his Florida bubble. Critics, including Senate Democrats, accused him of being out of touch with ordinary Americans struggling with the economic impact. “While people are trying to make ends meet, Trump is out golfing,” said Senator Ben Ray Luján.

Trump defended his policies, promising on Truth Social that they would never change, claiming they were necessary to bring jobs back to the US. He also shared a controversial video suggesting his policies would ultimately lead to financial gain for investors, despite experts’ concerns. Amid mounting global tension over the tariffs, Trump continued to engage in talks with foreign leaders, including those in Vietnam and China, while celebrating positive job growth figures in the U.S. as evidence his approach was working.

Global financial markets are in freefall, with the S&P 500 and Nasdaq dropping 5.7%, and the Dow Jones plunging 2,100 points. The crisis deepens as China matches President Trump's tariff hike, escalating the trade war. Despite strong US job market data, markets continued to slide, with oil prices hitting their lowest since 2001. The economic outlook remains bleak.

EU trade chief Maros Sefcovic told US officials on Friday that President Donald Trump's 20% tariffs on the EU were "unjustified," reaffirming the bloc's commitment to "meaningful negotiations." Following a "frank" two-hour discussion with US Commerce Secretary Howard Lutnick and trade envoy Jamieson Greer, Sefcovic stated on X, "US tariffs are damaging and unjustified. The EU-US trade relationship needs a fresh approach. The EU is committed to meaningful talks but is also prepared to defend our interests. We remain in contact."

Automakers are adjusting to the 25% tariff on car imports imposed by US President Donald Trump, which came into effect on Thursday. The levy applies to vehicles not made in the US, prompting car manufacturers to pause production, raise prices, or halt certain models.

Bank of America estimates that 7.3 million vehicles, or 8% of global auto sales, will be impacted by the tariff. Ford CEO Jim Farley warned in February that the tariffs would lead to "a lot of cost and a lot of chaos" for automakers.

In addition, tariffs on car parts will gradually take effect, raising key questions for the US auto market: how much will prices increase, and how much will consumer demand fall?

Volkswagen has already informed US dealers of an "import fee" on vehicles shipped from Europe and Mexico. Bank of America predicts US vehicle prices could rise by $10,000 if manufacturers fully pass on the tariff costs, although they expect consumers may not bear the entire increase. Analysts anticipate price hikes of about $4,500.

Luxury carmakers like Porsche may also struggle to absorb tariff costs on lower-end models, such as the Macan SUV. Ferrari has already announced price increases of up to 10% on US sales.

Ford, which manufactures most of its vehicles in the US, has capitalised on the situation with an advertising campaign highlighting its American-made cars.

US automakers, including Ford, GM, and Stellantis, have urged Trump to ease the tariffs, as supply chains in Canada and Mexico have been disrupted.

If you have ever bought a pair of jeans from an American brand like Levi’s or Wrangler, chances are they were manufactured at a factory in the small southern African nation of Lesotho.
Textile manufacturing is one of Lesotho's key industries, exporting some 75% of its output to the United States.

This is expected to change after U.S. President Donald Trump slapped a 50% tariff on imports from Lesotho, the highest among all countries. According to Trump, Lesotho charges a 99% tariff on U.S. goods, but the government said it doesn't know how the U.S. administration calculated that figure. Government officials did not say Thursday what Lesotho's tariffs on U.S. goods are.

The EU has said "everything is on the table" as it readies its response -- including possibly targeting US Big Tech and taxing more American goods -- to President Donald Trump's sweeping new tariffs should talks with Washington fail.
The European Commission, in charge of the EU's trade policy, refuses to give any details on what its response to Trump's 20 percent tariffs starting April 9 could include.

But France, Germany and Austria have suggested targeting the biggest digital companies, including Google and Facebook owner Meta.

These are the options the 27-country European Union has been discussing:

The Trump administration’s expansive new tariffs will likely lead to higher inflation and slower growth, and the Federal Reserve will focus on keeping price increases temporary, Fed Chair Jerome Powell said Friday.
Powell said that the tariffs, and their impacts on the economy and inflation, are “significantly larger than expected.” He also said that the import taxes are “highly likely” to lead to “at least a temporary rise in inflation,” but added that “it is also possible that the effects could be more persistent.”

“Our obligation is to ... make certain that a one-time increase in the price level does not become an ongoing inflation problem,” Powell said in remarks being delivered in Arlington, Virginia.

Powell’s focus on inflation suggests that the Fed will likely keep its benchmark interest rate unchanged at about 4.3% in the coming months. That is likely to disappoint Wall Street investors, who now expect five interest rate cuts this year, a number that has increased since President Donald Trump announced the tariffs Wednesday.

Wall Street's top 'fear gauge' soared to an eight-month high on Friday as US stocks tumbled sharply after China imposed sweeping new tariffs on all US goods. This latest escalation in the trade war between the world's two largest economies rattled global markets, deepening investor anxiety and fueling fears of an impending recession.

The Cboe Volatility Index (.VIX), an options-based measure of stock investors' anxiety, spiked as much as 15.54 points to 45.56, its highest level since August. It later settled at 38.27, still up 8.25 points on the day. Historically, a VIX reading above 40 signals heightened fear and market stress, often indicative of systemic risks spreading across asset classes, as reported by Reuters.

"Just had a very productive call with To Lam, General Secretary of the Communist Party of Vietnam, who 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 on a Truth Social.

Picture this: you’re at the grocery store, reaching for your usual $3 avocado, only to find it now costs $4.50. You look around for answers — inflation? Greedy grocers? Nope. It’s a global trade war. Welcome to Trump’s America, Round Two: Tariffs Edition.On Wednesday, President Donald Trump stood in the Rose Garden, squinting into the sun and declaring a “Declaration of Economic Independence.” Translation: a massive tax on nearly everything Americans buy, cleverly disguised as patriotic defiance. The headliner? A 10 percent tariff on all imports, plus extra tariffs — up to a spicy 50 percent — for countries he doesn’t particularly like this week.

China played it wrong, they panicked - the one thing they cannot afford to do!: Donald Trump said on Truth Social. He reacted a few hours after China imposed a 34% retaliatory tariff on all US products.

A nonprofit group sued US President Donald Trump and his administration over alleged misuse of emergency powers to impose tariffs on all imports from China earlier this year.

The lawsuit disputed the legality of Trump's executive order from February 1, not the broader set of tariffs announced on Wednesday that also target a number of US allies and trading partners around the world.

Trump's February executive order, based on a 1977 law granting presidents sweeping powers during an economic emergency, was "unconstitutional," said the nonprofit, New Civil Liberties Alliance, in the filing to a Florida federal court.

The 1970s law "authorizes presidents to order sanctions as a rapid response to international emergencies. It does not allow a president to impose tariffs on the American people," argued the group.

The new far-reaching tariffs, unveiled by Trump on Wednesday, sowed panic in the markets, setting off a global stocks rout and sending oil prices to the lowest levels since December 2021.

A leading trade expert has indicated that the calculations behind the Trump administration's tariff decisions are "not standard economics" and frequently result in rates exceeding those applied by targeted nations to American products. Julia Spies, who heads trade and market intelligence at the International Trade Center, expressed concerns about the unclear methodology used by the US Trade Representative's office and other American officials in determining these tariffs.

According to Spies, the tariff figures announced by Trump appear to be derived from a calculation involving the US trade balance with specific countries, divided by imports from those nations, with that result halved to determine the reciprocal tariff.

"This is not standard economics," Spies told reporters by video to a UN briefing in Geneva.

She explained that the American calculations incorporated various factors beyond simple tariffs, including regulations affecting US exports, currency manipulation accusations, sanitary requirements, and technical trade barriers, all of which contributed to their final tariff determinations.

The International Trade Center, situated in Geneva, operates as a joint venture between the United Nations and World Trade Organisation, focusing on supporting small enterprises from developing nations in international trade.

The price of copper slumped more than five percent on Friday as China said it would slap extra levies on US imports after Trump's tariff blitz.

Copper -- a vital component for energy storage, electric vehicles, solar panels and wind turbines -- slumped 5.1 percent to $8,890.50 a tonne, its biggest intraday drop since July 2022.

China said it had filed a lawsuit with the World Trade Organization (WTO) over sweeping US tariffs imposed on its exports. "China has filed a lawsuit under the WTO dispute settlement mechanism," Beijing's commerce ministry said in a statement.

China's finance ministry announced on Friday that it will impose additional tariffs of 34% on all U.S. goods, effective April 10, as a countermeasure to the sweeping tariffs imposed by U.S. President Donald Trump.

Several Pacific island nations have voiced deep concern over sweeping new US tariffs imposed by President Donald Trump, labelling the move as “unfair” and damaging to their economies. The United States recently imposed tariffs well above the new 10% baseline on Fiji, Vanuatu, and Nauru—penalising the small nations for running trade surpluses with Washington.

The increased duties are expected to strain already fragile economies and have led to rising distrust toward the US, which has previously slashed humanitarian aid to the region.

“This adds to growing reasons for Pacific countries to lose confidence in the US,” said Blake Johnson, senior analyst at the Australian Strategic Policy Institute. He warned that the situation could create fresh openings for China to strengthen its influence through trade, after years of expanding aid programmes in the region.

Key exports from the Pacific include kava, a traditional plant-based drink, and Fiji Water—one of the US's most prominent bottled water imports, owned by California-based The Wonderful Company.

Vanuatu, which posted a US$6.6 million trade surplus with the US in 2024, now faces 22% tariffs that are likely to hurt kava farmers. Still, some in the industry are pushing back.

“We won’t lower our prices—the American consumer can just deal with it,” said Jonathan Naupa, who runs kava exporter Mount Kava. “This might even be good for us. Maybe the US will start respecting our cultural exports more.”

Nauru, whose modest exports include phosphate remnants and fishing rights, now faces a 30% tariff, despite a small $1.4 million trade surplus with the US—equivalent, as noted by observers, to the cost of a Manhattan apartment.

Fiji, with a much larger $252 million goods trade surplus fuelled by exports of bottled water, fish and kava, is now hit with a 32% blanket tariff. The Fijian government has slammed the decision.

“These tariffs are disproportionate and unjustified,” said finance minister Biman Prasad. He added that Fiji is seeking clarity from Washington on the rationale behind the move.

Trade experts argue that deficits aren’t inherently problematic and often reflect normal economic dynamics. Roland Rajah of the Lowy Institute noted that smaller countries like those in the Pacific may struggle to get Washington’s attention amid bigger global trade disputes.

Meanwhile, Papua New Guinea, the largest Pacific island nation, announced it would not retaliate, with Prime Minister James Marape stating, “If the US market becomes harder to access, we’ll focus on Asia and the Pacific, where our goods are valued and trade is based on mutual respect.”

Indonesia's main business lobby has backed Jakarta to negotiate better terms with Washington after US President Donald Trump imposed hefty tariffs on goods from Southeast Asia's biggest economy.
Trump announced sweeping, harsher-than-expected global levies this week, punishing allies like security partner Indonesia for running a trade surplus with the economic superpower.

The escalation saw the archipelago nation hit with an additional 32 percent levy on its goods, higher than the baseline 10 percent for all countries and more than Southeast Asian neighbours Malaysia, Singapore and the Philippines.

Jakarta's foreign ministry said it would send a high-ranking delegation to Washington to negotiate a better deal, and businesses said there was hope.

The tariffs were just "an opening statement", said Indonesian Chamber of Commerce and Industry (Kadin) chair Anindya Novyan Bakrie in a statement late Thursday.

"This means the door for negotiation is still open. Intensive communication with the US government... is the right move."

The foreign ministry said the tariffs would have a "significant impact" on its exports to the United States, including electronics, textiles, footwear and palm oil.

It said it was taking "strategic steps" to mitigate the fallout from the new tariffs.

The United States is one of Indonesia's top trading partners, and Jakarta enjoyed a $16.8 billion trade surplus with Washington in 2024, according to Indonesian government data.

Washington appears to have particularly taken aim at countries that the United States has a large trade deficit with.

Data from the US trade representative office shows Washington's goods trade deficit with Jakarta was $17.9 billion in 2024, up 5.4 percent increase on the year prior.

Indonesia's Southeast Asian neighbours Cambodia, Laos and Vietnam were some of the worst-hit nations, with tariffs of more than 40 percent imposed.

The United States has revised downwards the import duties to be imposed on India from 27 per cent to 26 per cent, according to a White House document. These duties will come into force from April 9.
While announcing the reciprocal tariffs against different countries on Wednesday, he held up a chart that showed the tariffs that countries such as India, China, the UK, and the European Union will now have to pay.

The chart indicated that India charged 52 per cent tariffs, including currency manipulation and trade barriers, and America would now charge India a discounted reciprocal tariff of 26 per cent.

Earlier, the White House documents showed a 27 per cent duty on India. However, as per the latest updates, it has been revised downwards to 26 per cent.

When asked, industry experts said one per cent would not have much of an impact.

Wall Street just suffered its most brutal one-day loss since the early days of Covid. The spark? A sweeping, historic round of tariffs announced by US President Donald Trump late Wednesday, including a 10% baseline duty on all imports and much higher rates on key trading partners like China and the EU. Markets reeled. Investors dumped risky assets. And the economic damage stretched across continents.

Asian stocks slumped on Friday as the fallout from US President Donald Trump’s sweeping new tariffs triggered the sharpest Wall Street sell-off since the COVID-19 crisis. US futures and oil prices also retreated, reflecting fears of a global economic slowdown.

Japan’s Nikkei 225 dropped 2.6% to 33,818.18, while South Korea’s Kospi slipped 0.8% to 2,467.14, amid ongoing tariff talks with the US. Australia’s S&P/ASX 200 sank 1.9% to 7,713.60. Chinese markets were closed for a public holiday.

Trump’s announcement of a baseline 10% tariff on imports—with steeper rates targeting countries like China and EU members—sparked broad concern. According to UBS analysts, these tariffs could shave up to 2 percentage points off US economic growth this year and push inflation near 5%, creating a severe drag on the global economy.

UBS strategists, including Bhanu Baweja, said the measures are so extreme that it’s hard to believe they’ll be fully implemented. But Trump remains upbeat. “The markets are going to boom,” he claimed before departing for Florida, downplaying the sharp losses.

On Thursday, the S&P 500 plummeted 4.8% to 5,396.52—its worst day since the 2020 pandemic crash. The Dow Jones dropped 4% to 40,545.93, and the Nasdaq tumbled 6% to 16,550.61. Smaller companies took the biggest hit, with the Russell 2000 plunging 6.6%, now over 20% below its all-time high.

Markets were already bracing for tariffs, but Trump’s sweeping and aggressive implementation surprised even pessimists. Mary Ann Bartels of Sanctuary Wealth called it the “worst-case scenario.”

Trump’s strategy seems more ideological than tactical, with long-term ambitions of reviving domestic manufacturing. But analysts warn that if these tariffs stick, markets could fall far further.

“Markets may actually be underreacting,” said Sean Sun of Thornburg Investment Management, though he suspects this may be an opening gambit.

Investors are also betting that the Federal Reserve may respond with interest rate cuts to cushion the blow. Yields on 10-year Treasurys tumbled to 4.04% from 4.20% on rising expectations of rate relief.

But rate cuts may be limited. Lowering rates could further stoke inflation, which is already expected to rise as tariffs make goods more expensive for American households.

Despite market chaos, some economic data remains solid. Weekly jobless claims were lower than expected, and the services sector showed modest growth. Still, concerns over weakening demand and rising costs hit a broad swath of the market.

Retailer Best Buy fell 17.8% due to its global supply chain exposure. United Airlines lost 15.6%, amid travel demand fears, and Target dropped 10.9% as consumers face renewed inflation pressure.

In currency markets, the US dollar edged up to 146.05 yen from 145.93 yen, while the euro inched up to $1.1068 from $1.1052.

From fine European wines to vital industrial tools, the sweeping new tariffs imposed by US President Donald Trump this week are set to ripple across the American economy, affecting a wide range of industries. The measures are already alarming business owners who fear rising costs and lost revenue.

Brett Gitter, who manufactures quality control instruments in China, is preparing to raise the surcharge on customer invoices to 54%, as Trump's latest tariff hike kicks in next Wednesday. These duties build on the existing 25% already applied to Chinese imports, and Gitter says they’ll come as a shock to his customers.

“It’s going to alarm people,” he said. “That’s a lot.”

Trump this week announced a flat 10% tariff on imports from nearly all US trading partners, starting Saturday. Countries with large trade deficits with the US—including China, the European Union, Japan, and India—will face even steeper duties from April 9.

Andrew Fortgang, who operates three restaurants and a wine shop in Oregon, is concerned about the 20% tariff on EU wine imports. He says around a quarter of his business depends on these wines, and losing that revenue would be “really frightening.” He warned that essential European products like cheeses, mustards, and meats simply can’t be sourced locally.

“You eventually hit a ceiling on how much you can raise prices,” he said.

Ben Aneff, president of the US Wine Trade Alliance, called the plan disastrous for small businesses, noting US firms earn $25 billion annually from $4.5 billion in EU wine imports. “There’s no substitute,” he said.

Bill Butcher, a Virginia craft brewer, said previous tariffs have already disrupted his supply chain, and he’s bracing for more chaos.

Many business owners like Gitter and metal fabricator Will Thomas say relocating production to the US isn’t feasible due to infrastructure gaps or reliance on components from Asia. Thomas summed up the sentiment: “We import from necessity, not desire.”

Wall Street suffered its worst day since the 2020 Covid crash as US stocks plummeted on Thursday, shedding more than $2 trillion in market value following President Donald Trump’s sweeping tariffs on foreign imports. The S&P 500 tumbled 4.8%, the Dow Jones Industrial Average lost over 1,600 points (4%), and the Nasdaq plunged 6%, rattling investor confidence and fueling recession concerns. Economists warned of prolonged economic uncertainty as businesses brace for higher costs and potential retaliatory measures. Retailers, tech firms, banks, and airlines bore the brunt of the selloff, with major companies seeing double-digit declines. “This is a game changer, not only for the US economy but for the global economy,” said Olu Sonola of Fitch Ratings, predicting a high risk of recession.

Japanese Prime Minister Shigeru Ishiba on Friday described the tariffs imposed by US President Donald Trump's administration as a "national crisis," as he prepared to hold cross-party discussions on strategies to mitigate their impact.

Despite Japan being one of the largest investors in the United States, Trump announced a 24% levy on Japanese imports on Thursday, alongside a 25% tariff on auto imports that took effect this week. Addressing parliament, Ishiba acknowledged the severity of the situation but urged a "calm-headed" approach to negotiations with Washington.

Government spokesman Yoshimasa Hayashi stated that Ishiba had directed ministers to closely examine the tariffs and consider all necessary measures, including financial support for affected industries and job protection. Ishiba will also meet with leaders of opposition parties to discuss potential countermeasures and garner support for a supplementary budget bill, crucial for his minority government.

Japan has expressed "serious concerns" over the legality of Trump's sweeping tariffs, questioning their compliance with World Trade Organization rules and existing US-Japan trade agreements. The government has vowed to press Washington to reconsider its decision.

Market reactions were swift, with Japan's Nikkei 225 index dropping over 3% on Friday, following a 2.7% decline the previous day. The downturn mirrored Wall Street's losses, where the S&P 500 suffered its sharpest single-day drop since 2020.

Industry experts warn that US President Donald Trump's decision to impose a 27% tariff on India's gem and jewellery exports could significantly disrupt the sector, as the United States remains one of India’s largest export destinations.

The US accounts for nearly one-third of India's $32 billion in gem and jewellery exports. Under the new tariff structure, cut and polished diamonds—which previously had duty-free access—will now be subject to a 27% tariff. Gold and platinum jewellery will face levies of 32-34%, while silver jewellery could be taxed as high as 40.5%. Lab-grown diamonds and imitation jewellery will also see substantial increases, with tariffs reaching up to 38%.

Ramit Kapur, Managing Director of GSI India, highlighted the potential impact, stating that major export segments such as cut and polished diamonds and studded gold jewellery will face significant pressure. However, he noted that high-value studded jewellery is expected to remain resilient due to US buyers' focus on quality, craftsmanship, and certification—areas where India excels. He urged policymakers and industry leaders to take swift action to maintain India's dominance in the global jewellery market.

Rajesh Rokde, Chairman of the Gem and Jewellery Council of India (GJC), emphasized that tariffs go beyond economic implications, fundamentally altering trade dynamics. He stressed the need for strategic foresight to navigate these challenges and adapt to the shifting competitive landscape.

Meanwhile, Saurabh Gadgil, CMD of PNG Jewellers, stated that domestic businesses like his would remain unaffected since India does not import jewellery from the US. He also cautioned that the tariff hike could hurt the US economy, increasing costs for American consumers and potentially slowing economic growth.

Experts warn that Indian exporters, particularly small businesses, risk losing market share in the US to competitors from countries not facing similar tariffs. They urge swift government intervention to safeguard India's leadership in the global gems and jewellery industry.