Trump Tariffs News highlights: Federal Reserve Chair Jerome Powell says Trump tariffs likely to raise inflation and slow US economic growth: AP

NATO Secretary General Mark Rutte stated that the Trump administration’s tariffs, even those targeting European allies, do not breach the NATO treaty. Speaking at a Brussels summit, Rutte emphasized that trade disputes should remain separate from defense matters, assuring that NATO’s mission remains “laser-focused” on security.

“We have seen disagreements before, but they do not impact NATO’s ability to deliver on defense,” he said, downplaying concerns related to Article 2, which encourages economic collaboration among allies.

JPMorgan Chase falls 6%, Bank of America down 6.1% and Citigroup down 7.7%

Goldman Sachs sheds 6.4%, Morgan Stanley down 6.6%, and Wells Fargo down 5.6%

Investment banks are expected to take a hit as tariff-driven uncertainty dampens dealmaking and capital markets activity

Lower consumer confidence could curb spending and dampen loan demand

The selloff comes after Goldman Sachs, Wells Fargo and Morgan Stanley fell between 9% and 9.5% on Thursday, JP

Morgan and Citi slipped 7% and Bank of America fell 11%.

Big banks begin reporting their quarterly results next week

Ralph Lauren and Capri Holdings drop 5% each

Tapestry falls 4%

Nike down 5%

Crocs down 4.4%

Skechers USA down 6.4%

Deckers Outdoor down 6.5%

Foot Locker down 6.4%

Alibaba down 9.1%

PDD Holdings down 7.8%,

NetEase down 5.1%

Baidu down 7.5%

JD.com down 9.5%

Marvell Technology down 9.5%

Micron down 7.6%

Advanced Micro Devices down 6%

Qualcomm down 4.1%

Broadcom down 4.5%

Intel down 5.7%

Nvidia down 4%

U.S. listing of Taiwan Semiconductor Manufacturing down 5.3%

The Philadelphia SE Semiconductor index falls 5.9% to the lowest since December 2023.

The U.S. stock market opened sharply lower on Friday after China retaliated against President Donald Trump’s tariffs, escalating fears of a prolonged trade war and its impact on global growth.

The Dow Jones Industrial Average opened 900 points, or 2.2%, lower, extending the heavy losses from the previous session. The S&P 500 fell 133 points, or 2.5%, while the Nasdaq Composite dropped 478 points, or 3%, as tech stocks took a major hit due to their exposure to China.

Leading the declines, Apple and Qualcomm slipped 3.2% and 3.4%, respectively. Tesla lost 4%, while Caterpillar shed 6%. Financial stocks also took a hit, with Morgan Stanley and Goldman Sachs both down around 6.5%. Citigroup tumbled 6.7%, while JPMorgan Chase slid 5.3%. Chipmaker Nvidia also fell about 4%.

The 10-year Treasury yield fell below 4% on Friday as investors rushed to safe-haven assets, driving bond prices up and rates lower. JPMorgan raised the odds of a U.S. recession this year to 60% from 40% after Trump’s new tariffs sent stocks into their worst decline since 2020. The S&P 500 is now down 14% from its February record high, while the small-cap Russell 2000 plunged over 6% on Thursday, officially entering a bear market with a 20% drop from its last peak.

The sharp sell-off in European markets has erased 5% from the Stoxx 600 index, which tracks Europe’s largest 600 companies. With weekly losses now exceeding 7.6%, the index is heading for its worst week since March 2020, when the Covid-19 pandemic sent global markets into freefall.

China is set to impose an extra 34% tariff on all U.S. imports beginning April 10, reports Xinhua.

Rupee At Close | Rupee Ends At 83.23/$ Against Thursday’s Close Of 85.43/$

• Rail project worth Rs 8741 crore in Chhattisgarh
• Rail project worth Rs 4819 crore in Maharashtra
• Rail project worth Rs 3917 crore in Odisha
• 3rd, 4th line at Sason-Jarsuguda in Odisha
• Total estimated cost Rs 18658 crore

• Oil prices fell over 1% on Friday, and were on track for the worst week in months over U.S. President Donald Trump's new tariffs, stoking concerns that a global trade war could hurt oil demand.
• Brent futures fell 76 cents to $69.38 a barrel by 0532 GMT, while U.S. West Texas Intermediate crude futures were down 78 cents, or 0.5%, to $66.13. Brent was on course for its biggest weekly loss in percentage terms since the week ended October 14, and WTI since the week ended January 21.
• While the highly anticipated tariff announcement by Trump on Wednesday sank crude prices, the impact was more severe elsewhere. Investors scrambled to the safety of bonds, the Japanese yen and gold, as the news sent shockwaves through global financial markets. (Reuters)

Shashi Tharoor demands PM Modi's Parliament address on tariffs

• Indian lenders have suggested that the central bank move to an overnight liquidity infusion instrument from a longer duration tool and adopt a new benchmark for overnight rates, five sources aware of the matter said on Friday.
• "The 14-day repo has outlived its time and with 24-hour banking, we need daily liquidity management tool so banks have suggested the Reserve Bank of India to revert to overnight operations at a fixed rate," one of the sources said.
• The RBI met select market participants on Thursday ahead of the first monetary policy decision for this financial year on April 9. (Reuters)

• Industry leaders in Gujarat have said the US government's decision to impose reciprocal tariffs on Indian imports will adversely impact the gems and jewellery industry, but will not affect the pharmaceutical, textile and agro-chemical sectors much.
• On April 2, US President Donald Trump announced a major new tariff policy designed to reduce the US trade deficit and boost domestic manufacturing. It announced 27 per cent reciprocal tariffs on India saying New Delhi imposes high import duties on American goods. (PTI)

President Donald Trump’s trade salvo was years in the making. The details came down to the final moments. Hours before Trump announced his signature tariff plan, aides were still rushing to hone key elements, including its size and scope as well as how to sell it to the American public and communicate some of its chief objectives. (Read More)

It ain’t over till it ain’t over. US President Donald Trump said his administration is looking at possible tariffs on pharmaceuticals. “The pharma is going to be starting to come in at, I think, a level that you haven’t really seen before,” President Trump said speaking to reporters aboard Air Force One. “We are looking at pharma as a separate category -- we will be announcing that sometime in the near-future, not in the distant future”, he said. (Read More)

Nifty nears 23,000, Sensex tumbles below 76,000 amid Trump's tariff turmoil; IT stocks crack 2%

European carmakers are increasing prices and considering moving production to the U.S. in an effort to shield themselves from President Donald Trump’s new tariffs. Volkswagen AG has announced it will add import charges to the prices of its vehicles entering the U.S., signaling that the 25% auto tariffs will have an immediate impact on Europe’s largest automaker. Meanwhile, Volvo Car AB and Mercedes-Benz Group AG are exploring ways to boost their U.S. manufacturing to avoid the new duties.

President Donald Trump said he was open to reducing his tariffs if other nations were able to offer something “phenomenal,” indicating that the White House was open to negotiations despite the insistence of some top officials. Trump, speaking on Air Force One on Thursday, broadly defended his tariff program despite a stock market meltdown, saying he was happy that interest rates were falling and believed that the economic turbulence would settle. (Read More)

• The U.S. dollar struggled to regain its footing with the safe-haven yen hovering near a six-month peak on Friday, as traders took stock of the fallout from President Donald Trump's aggressive and far-reaching new tariff measures.
• The dollar was steady after bouncing off six-month troughs to the euro and sterling overnight, with the focus now turning to a crucial monthly U.S. payrolls report later in the day for clues on the health of the economy and the outlook for monetary easing. (Reuters)

• Pharma Exempt From US Tariffs, Providing Reprieve For Indian Pharma Cos
• Indian Pharma Cos 10-50% Sales From The US
• Tariff Discussion On Pharma May Resurface
• Don’t Expect Unmanageable Tariffs For Indian Pharma Sector Ahead
• For Key Indian Cos, Having Mfg Plants In Us Provides Further Cushion Against Any Dvpts

• The World Trade Organisation voiced its "deep concern," warning that global trade volumes could contract by 1% this year due to the proposed tariffs.
• Markets reacted nervously, with traders worried that the tariffs might fuel inflation and hinder economic growth.
• During early Friday trading, Japan's Nikkei 225 dropped 1.8%, South Korea's Kospi declined by about 1%, and Australia's ASX 200 slipped 1.4%.

Tariffs are taxes applied to imported goods, and under Trump’s newly announced plan on Wednesday, these duties would rise to levels not seen in over a century.

The Senate, divided along party lines, voted to move forward with discussions on the Republican budget proposal, a step toward passing legislation that would advance much of President Donald Trump’s agenda later this year. Senator Rand Paul, a Republican, voted against the measure, expressing objections to the inclusion of a debt ceiling increase. The resolution passed with a 52-48 vote.

Good morning and welcome to our live coverage on fallout of sweeping tariffs announced by US President Donald Trump. US stock markets tumbled on Thursday, posting their steepest losses since 2020 across all three major indexes, while the US dollar gave up all gains made since Trump’s reelection. The sell-off rippled through global markets, which also saw significant declines. Economists speaking to CNN warned that rising tariffs could push the world economy into a recession. In retaliation, Canada announced a 25% tariff on US vehicle imports that don’t comply with USMCA rules. The European Union, another major US trading partner, is also preparing its own set of countermeasures.