2h ago
02.00 EDT
Summary
In case
you’re just catching up with the latest upheaval in Donald Trump’s deepening
global trade war, here’s a recap of today’s developments. And you can read our
latest full report here.
Trump’s
new wave of tariffs on dozens of economies came in force on Wednesday,
including 104% levies against Chinese goods, as Washington and Beijing were
locked in a high-stakes game of brinkmanship.
Rates on
imports to the US from exporters like the European Union or Japan rose further
at 12.01am (05.01am BST) Wednesday, after the imposition of sweeping 10%
tariffs rocked the global economy since coming into force over the weekend.
China has
been hardest hit by the tariffs but has shown no signs of backing down, vowing
to fight a trade war “to the end” and promising countermeasures to defend its
interests. China’s retaliatory tariffs of 34% on US goods are due to enter in
force on Thursday.
Trump
said on Tuesday his government was working on “tailored deals” with trading
partners, with the White House saying it would prioritise allies like Japan and
South Korea. His top trade official Jamieson Greer also told the Senate that
Argentina, Vietnam and Israel were among those who had offered to reduce their
tariffs.
Trump
told a dinner with fellow Republicans on Tuesday night that countries were
“dying” to make a deal. The US president said: “I’m telling you, these
countries are calling us up kissing my ass.”
A
sell-off across Asian markets resumed on Wednesday, with Japan’s Nikkei down
more than 3%, Hong Kong plunging more than 3%, South Korea’s currency hitting a
16-year low and government bonds suffering heavy losses. Australian shares lost
billions of dollars of value, while Taiwain stocks fell 5.8% in afternoon
trading. Trillions in equity have been wiped off global bourses in the past
days.
Foreign
exchange markets also witnessed ructions, with the South Korean won falling to
its lowest level against the dollar since 2009 this week. China’s offshore yuan
also fell to an all-time low against the US dollar, as Beijing’s central bank
moved to weaken the yuan on Wednesday for what Bloomberg said was the fifth day
in a row. Oil prices slumped, with the West Texas Intermediate closing below
$60 for the first time since April 2021.
India’s
central bank cut interest rates, citing “challenging” global conditions.
The
European Union has sought to cool tensions, with bloc chief Ursula von der
Leyen warning against worsening the trade conflict in a call with Chinese
premier Li Qiang. She stressed stability for the world’s economy, alongside
“the need to avoid further escalation”, an EU readout said.
With news
agencies
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