Trump Tariffs News: Wall Street opens lower after sharp rally on Trump tariff reversal

The price of gold, seen as an investment haven, struck a record high Thursday as the dollar tumbled on renewed fears over fallout from US President Donald Trump's tariffs.

Gold reached a record above $3,171 an ounce, as a falling US currency makes the precious metal more attractive to holders of some rival currencies.

The S&P 500 was down 2.3% early Thursday, a day after surging 9.5% following Trump’s decision to pause many of his tariffs worldwide. The Dow Jones Industrial Average was down 685 points, and the Nasdaq composite was down 2.9%.

Even a better-than-expected report on inflation wasn’t enough to get stocks to add to their gains from the day before, including the S&P 500’s third-best since 1940

Wall Street's main indexes opened lower Thursday, coming off a blistering rally after Trump's move to temporarily lower tariffs on dozens of countries.

The Dow Jones Industrial Average fell 611.5 points, or 1.51%, at the open to 39,996.93.

The S&P 500 fell 103.7 points, or 1.90%, at the open to 5,353.15​.

The Nasdaq Composite dropped 489.5 points, or 2.86%, to 16,635.454 at the opening bell.

The United States is talking to trading partners and is close to reaching agreements with some on tariffs, White House economic adviser Kevin Hassett said on Thursday.

"There's a big inventory of deals that are right close to the finish line," Hassett said in an interview with CNBC.

He said conversations with China had not yet begun.

In a separate interview with Fox News, Hassett said they had offers from 15 countries.

Shares of U.S. fintech companies fall premarket, paring Wednesday's gains.

Affirm down 3.6%, Pagaya Technologies falls 3.3% and Upstart Holdings down 2.6%

PayPal drops 1.9% and Block slips 1.7%

LendingClub sheds 4% in choppy trading

Swedish fintech Klarna paused its plans for a U.S. IPO last Friday as investor and consumer sentiments eroded amid the tariff-induced global market rout

Despite the temporary reprieve on Wednesday, a trade war between the two largest economies in the world fuels uncertainty that could dampen consumer confidence and curb spending.

Citigroup upgraded its recommendation on U.S. and European equities to 'overweight' following Trump's 90-day pause on most of his levies.

There was no immediate clarity on Citi's previous recommendation on both the regions equities in the note dated Wednesday.

Alphabet said on Wednesday it was still committed to spending some $75 billion this year to build out data center capacity despite turmoil over U.S. tariffs and sought to reassure investors that its AI plans were yielding good returns.

Investors are fretting about the massive capital costs of AI projects, especially as uncertainty surrounding U.S. President Donald Trump's tariffs roil markets and cloud the economic outlook.

CEO Sundar Pichai said the investment would buy the chips and build the servers needed to burnish Alphabet's core offerings, including Search, while supporting the development of AI services such as its Gemini model.

The murmurs spread quietly at first, then exploded into a roar as the news hit — President Donald Trump was pausing the bulk of his tariffs and putting his global trade war on hold. Mostly.

“Is it real?!” said Jonathan Corpina, senior managing partner at Meridian Equity Partners. “I couldn’t believe my eyes. Everything happened so quick.”

That was the reaction on the floor of the New York Stock Exchange as equities soared 7% in a matter of minutes Wednesday afternoon when news started spreading that Trump was partially halting the higher tariffs that hit dozens of America’s trading partners just after midnight.

“Holy crap!” said Jay Woods, chief global strategist at Freedom Capital Markets, who has worked on the NYSE floor for 35 years. “This was total shock and awe.”

The S&P 500 Index ended the day up 9.5%, its biggest one-day gain since October 2008.

It’s possible for Apple Inc. to move iPhone production to America, but it would almost double the cost of making the device while creating logistical headaches, according to Bank of America.

“iPhone cost can increase 25% purely on higher labor cost in the US,” BofA analysts led by Wamsi Mohan wrote in a note to clients on Wednesday.

Japan will continue to urge the US to rethink its tariff plans in hopes of winning a longer-term reprieve from higher rates that President Donald Trump put on hold, the nation’s top trade representative said.

“There is no change in Japan’s policy,” said Ryosei Akazawa, who was this week appointed the country’s top negotiator on the US levies. “We will pursue Japan’s national interests to the maximum extent without panicking or making a fuss.”

The 90-day pause removes higher across-the-board levies on goods imported to the US from Japan and many other countries for now, while leaving a baseline 10% duty in place. Japan had faced a 24% duty.

Officials across Asia reacted to US President Donald Trump’s 90-day pause on higher tariffs for dozens of trade partners with a mixture of relief, caution and a little mockery.

Some — like Vietnam that had been facing a 46% levy, and Japan with a 24% surtax — pressed ahead with efforts to ensure the reprieve becomes permanent for their economies.

Vietnam Deputy Prime Minister Ho Duc Phoc met with US Trade Representative Jamieson Greer in Washington and agreed to start negotiations on a “reciprocal” trade agreement, according to a post on the government website. The nation’s stocks surged in early trading Thursday.

Japan will continue to urge Trump to review his tariff measures, according to Ryosei Akazawa, the nation’s top trade representative. “There is no change in Japan’s policy,” Economic Revitalization Minister Akazawa said on Thursday.

Stocks in Asia joined a relief rally that helped US shares post their best day since the global financial crisis after US President Donald Trump paused most of his tariffs. Treasuries rallied after a tumultuous session.

Indexes across the region advanced Thursday and equity-index futures for Europe surged more than 9% after the S&P 500 rallied 9.5% Wednesday. A gauge of the dollar slipped for a third day while yields on the 10-year US Treasuries edged lower in early Asian trading.

Moves in Asia extended the volatile trading across global markets over the past week as investors grappled with the fallout from Trump’s country-specific tariffs and sudden policy changes. Read more

The world’s wealthiest people added $304 billion to their combined net worth on Wednesday — the largest one-day gain in the history of the Bloomberg Billionaires Index — as stock markets soared after President Donald Trump pledged to pause tariffs on some trading partners.

Wednesday’s total wealth gain beat the previous record of $233 billion set in March 2022, after Federal Reserve Chair Jerome Powell raised rates for the first time in years but reassured investors that the economy remained resilient. Read more

Stock indexes posted their biggest one-day gains in years, with the S&P 500 recording its largest rise since 2008, while the dollar gained and Treasuries pared losses on Wednesday after U.S. President Donald Trump declared a temporary U.S. pause on tariffs.

The announcement by Trump came in the afternoon after days of market turmoil, with bond prices and the U.S. dollar selling off earlier in the day on fears that the administration's plans to raise tariffs to levels last seen more than 100 years ago would push the economy into recession.

The news of a pause brought sudden relief to the market. The S&P 500 ended 9.5% higher, while the Nasdaq rose 12.2% in its biggest one-day gain since January 3, 2001, and its second-biggest on record. But investors said uncertainty about the longer-term plan for tariffs persisted.

Chinese stocks rose for a third day, reflecting continued investor expectations of more stimulus support from Beijing as well as hopes for a possible trade deal with the US.

A key gauge of Hong Kong-listed Chinese shares gained as much as 4.6% in early Thursday trading, while the onshore benchmark CSI 300 Index added 1.9%.

The gains came even as Donald Trump raised tariffs on China further to 125% while announcing a 90-day pause on higher levies for most other nations.

U.S. President Donald Trump's stunning decision to pause the hefty duties he had just imposed on dozens of countries sent battered global stock markets surging on Thursday even as he ratcheted up a trade war with the world's No. 2 economy China.

Trump's turnabout on Wednesday, which came less than 24 hours after steep new tariffs kicked in on most trading partners, followed the most intense episode of financial market volatility since the early days of the COVID-19 pandemic.

But he kept the pressure on China, the second biggest provider of U.S. imports. Trump said he would raise the tariff on Chinese imports to 125% immediately from the 104% level that took effect at midnight.

Beijing on Wednesday slapped 84% tariffs on U.S. imports to match Trump's earlier tariff salvo and has vowed to "fight to the end" in an escalating tit-for-tat trade dispute between the world's top two economies.

In a dramatic shift that stunned global markets, President Donald Trump on Wednesday announced a 90-day pause on most new tariffs, temporarily easing the economic pressure on dozens of countries while significantly ramping up penalties on China.

The announcement, which came just a day after sweeping duties kicked in, followed a period of intense financial market turmoil that wiped trillions from global stock values and sent U.S. bond yields soaring. Trump's reversal quickly turned markets around, sending the S&P 500 up more than 9% and fueling a global rebound. Read more

The S&P 500 surged 7.8% on Wednesday, heading toward its biggest one-day gain in five years. The Dow Jones Industrial Average jumped 2,382 points, or 6.3%, also marking its strongest rally since 2020. The tech-heavy Nasdaq Composite climbed nearly 10%, leading the charge as investor optimism returned.

Fueling the rally was President Donald Trump’s announcement of a 90-day pause on most new tariffs and a reduction in the “Reciprocal Tariff” rate to 10% during that period — except for China.

“I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately,” Trump wrote on Truth Social. He added that tariffs on China would simultaneously be raised to 125%, signaling a continued hardline stance.

Treasury Secretary Scott Bessent later clarified that the 10% baseline would apply to all countries except China, and that sector-specific tariffs would remain in place during negotiations.

Bessent also defended the pause, casting it as a deliberate tactic by the president, not a retreat.

“This was driven by the president’s strategy. He and I had a long talk on Sunday, and this was his strategy all along,” Bessent said. “You might even say he goaded China into a bad position. They responded. They have shown themselves to the world to be bad actors.”

According to CNN, Bessent met with Trump at Mar-a-Lago over the weekend and encouraged a shift in focus toward finalizing new trade deals with various countries.

Bessent emphasized that Trump would remain closely involved in upcoming negotiations.

“No one creates leverage for himself like President Trump,” he said.

(Market inputs from CNBC)

U.S. Treasury Secretary Scott Bessent on Wednesday defended President Donald Trump’s decision to pause new tariffs, describing it as a calculated move rather than a reactionary shift that rattled global markets.

“This was driven by the president’s strategy. He and I had a long talk on Sunday, and this was his strategy all along,” Bessent said. “You might even say he goaded China into a bad position. They responded. They have shown themselves to the world to be bad actors.”

CNN had earlier reported that Bessent met with Trump at Mar-a-Lago over the weekend, where he urged the president to pivot toward securing trade agreements with multiple countries.

Bessent added that Trump intends to be hands-on in the negotiations moving forward.

“No one creates leverage for himself like President Trump,” he said.

White House Press Secretary Karoline Leavitt on Wednesday brushed off criticism over President Donald Trump’s sweeping tariffs, framing them as part of a broader negotiation strategy — not a misstep. Her comments came as markets responded to the administration’s 90-day pause on most tariffs.

“Many of you in the media clearly missed the art of the deal. You clearly failed to see what President Trump is doing here,” Leavitt said, referencing the president’s well-known book Trump: The Art of the Deal. She spoke to reporters outside the White House, flanked by Treasury Secretary Scott Bessent.

Leavitt also pushed back against concerns that tariffs on allied nations could drive them closer to China.

“In fact, we’ve seen the opposite effect. The entire world is calling the United States of America, not China, because they need our markets, they need our consumers, and they need this president in the Oval Office to talk to them,” she said.

According to Leavitt, more than 75 countries have reached out to the U.S. seeking trade talks. Meanwhile, retaliatory tariffs from other nations officially took effect just after midnight.

(From Washington Post)

Treasury Secretary Scott Bessent defended the 90-day tariff pause on Wednesday, portraying it as a calculated move by President Trump rather than a retreat. He said the pause signaled Trump’s intent to pursue “bespoke” trade agreements with countries open to lowering trade barriers.

Bessent also argued that the strategy had successfully exposed China’s role in escalating tensions. “Trump goaded China into showing that they were the ‘bad actors,’” he said.

Framing the move as a pressure tactic rather than a concession, Bessent claimed the tariffs had already pushed some of China’s neighbors to the negotiating table. “Do not retaliate, and you will be rewarded,” he added.

(From New York Times)

Stocks rocketed higher in a dramatic turnaround Tuesday, snapping a brutal losing streak with one of the biggest single-day rallies in recent memory.

The Dow Jones Industrial Average surged more than 2,300 points, jumping 6.2%. The S&P 500 soared 7%, while the tech-heavy Nasdaq led the charge with a massive 8.5% gain.

Tech giants were at the forefront of the bounce. Apple, Nvidia, and Tesla each rallied more than 6%, as investors swooped in to scoop up beaten-down shares at bargain prices.

It was a sharp reversal for a market that had been teetering on the edge of bear territory. The S&P 500 was just shy of a 20% drop from its February 19 record high — a plunge that would have marked one of the fastest bear markets in history.

U.S. oil prices climbed back above $63 a barrel on Wednesday afternoon, reversing earlier losses after President Trump announced a 90-day pause on most tariffs.

The rebound signals a renewed wave of economic optimism, with crude bouncing after a week of extreme volatility. Over the past few days, oil has swung between a high of $72 and a low of $55 a barrel. Brent crude was last seen trading at $63.89.

Markets staged a dramatic rebound Wednesday after President Donald Trump announced a pause on most tariffs, reversing days of steep losses and igniting a broad rally on Wall Street.

The S&P 500 surged 6%, while the Dow Jones Industrial Average jumped 2,159 points, or 5.7%. The tech-heavy Nasdaq Composite led the gains, soaring 8%.

Shares that had borne the brunt of the tariff war saw a sharp comeback. Apple rose 7%, Nvidia spiked 10%, and Walmart climbed 9% as investors cheered the temporary de-escalation.

Markets had remained volatile for most of the session, rattled by China’s earlier move to impose an 84% tariff on U.S. goods starting Thursday. This followed the U.S. rolling out 104% tariffs on Chinese imports just after midnight. Meanwhile, the European Union approved its first set of retaliatory tariffs on the U.S., scheduled to begin April 15.

President Trump issues a 90-day pause on tariffs "and a substantially lowered Reciprocal Tariff during this period of 10%," except for China.

The president has raised tariffs on China to 125%, effective immediately.

Investors are fleeing long-term US government bonds at a pace not seen since 2020, unnerved by the economic fallout of President Donald Trump’s latest round of tariffs that took effect today.

Yields on 30-year Treasuries briefly jumped above 5%, a psychological red line, as markets priced in the dual threat of rising inflation and a looming recession. The tariffs are fueling fears that the Federal Reserve may be forced into a corner, unable to cut rates without further inflaming price pressures.

Although the selloff cooled slightly as European markets opened, uncertainty lingered. Analysts say the rush out of US sovereign debt reflects a deeper crisis of confidence in Washington’s economic strategy.

Iran’s mistrust and raised doubts over Washington’s “sincerity of intentions.”

(From Bloomberg)

The Trump administration has imposed a new round of sanctions on Iran, targeting entities linked to the country’s nuclear program just days before planned talks between Washington and Tehran in Oman.

The sanctions, announced on Wednesday, affect five entities and one individual accused of supporting Iran’s nuclear ambitions.

“The Iranian regime’s reckless pursuit of nuclear weapons remains a grave threat to the United States and a menace to regional stability and global security,” Treasury Secretary Scott Bessent said in a statement. He added that the US would continue to use all available tools to prevent Iran from advancing its nuclear program.

Despite President Donald Trump’s repeated calls for dialogue, his administration has continued its maximum pressure campaign against Tehran — a policy revived from his first term in office.

In a Washington Post op-ed, Iranian Foreign Minister Seyed Abbas Araghchi criticized the move, saying the administration’s insistence on reviving the maximum pressure strategy ahead of diplomatic engagement has only deepened Iran’s mistrust and raised doubts over Washington’s “sincerity of intentions.”

Amazon has halted purchase orders for a range of products made in China and other Asian countries in what appears to be a preemptive move to shield itself from new U.S. tariffs, Bloomberg reported, citing internal documents and sources familiar with the matter.

The cancelled orders span a variety of items — including beach chairs, scooters, and air conditioners — and came shortly after President Donald Trump announced sweeping tariffs targeting over 180 countries and territories, with China, Vietnam, and Thailand among those listed.

Vendors affected by the sudden cancellations believe Amazon is reacting to the trade policy shift. One long-time supplier of Chinese-made beach chairs shared an email from Amazon, reviewed by Bloomberg, that claimed the cancelled orders were issued “in error” and advised the vendor not to ship them. The email made no mention of tariffs, but the timing has raised concerns among suppliers.

The full scale of the cancellations and the breadth of the products affected remain uncertain.

Americans are reportedly rushing to stockpile everyday essentials following the announcement of sweeping new tariffs by President Donald Trump, according to The Independent. The report says consumers across the U.S. are buying in bulk, switching to lower-cost brands, and prioritizing items with longer shelf lives — a response fueled by fears of a return to the pandemic-era supply chain chaos that left store shelves empty and prices soaring.

In a related development, Bloomberg reports that Amazon has begun canceling orders for a broad range of products sourced from China and other parts of Asia, hinting at early ripples of the escalating trade tensions.

Delta Air Lines on Wednesday became one of the largest U.S. companies to publicly warn that President Donald Trump’s intensifying trade war is taking a toll on both its business and the broader global economy.

Speaking to CNBC, Delta CEO Ed Bastian cautioned that a recession is on the horizon if trade tensions persist. “Everyone’s being prepared for uncertainty,” Bastian said. “If that continues, and we don’t get resolution soon, we will probably end up in a recession.”

Airlines are particularly vulnerable to economic downturns, as both consumers and businesses tend to cut back on travel expenses during periods of financial stress.

Bastian said he was stunned by how quickly the economy had soured. “We’re in uncharted, unprecedented uncertainty, when you look at what’s happened and the pivot so quickly to this self-inflicted situation,” he added.

His remarks stand in contrast to those of Treasury Secretary Scott Bessent, who on the same day claimed that top executives have been reassuring him the economy remains on solid ground.

Asia-Pacific markets largely fell on Wednesday as U.S. President Donald Trump’s country-specific tariffs took effect, rattling investor sentiment across the region.

Japan’s Nikkei 225 plunged 3.93% to close at 31,714.03, while the broader Topix shed 3.4% to finish at 2,349.33. South Korea’s Kospi dropped 1.74% to 2,293.7, marking a more than 20% fall from its July high — officially entering bear market territory. The Kosdaq also tumbled 2.29%.

Australia’s S&P/ASX 200 lost 1.8% to close at 7,375. India’s Nifty 50 slipped 0.39% after the Reserve Bank of India cut its policy rate by 25 basis points to 6%, as widely expected.

Bucking the regional trend, Hong Kong and mainland China saw gains. The Hang Seng Index rose 0.68% to 20,264.49, while the Hang Seng Tech Index surged 2.64%. On the mainland, the CSI 300 climbed 0.99% to close at 3,686.79.

(From CNBC)

Vietnam’s Deputy Prime Minister Ho Duc Phoc is expected to meet U.S. Treasury Secretary Scott Bessent in Washington on Wednesday, as the Trump administration continues high-stakes negotiations with multiple countries over its recently announced tariff regime, a source familiar with the matter told CNN.

The meeting comes as Vietnam faces one of the steepest reciprocal tariff rates under the new U.S. trade policy, 46 percent, which officially took effect today.

Bessent has also held talks with officials from Japan, South Korea, and several other nations in recent days, as Washington works to manage global fallout from the tariff hike and push for what it calls "fairer trade practices."

The Trump administration unveiled the new tariff framework last week, signaling a sharp escalation in its protectionist trade agenda.

Beijing on Wednesday issued a travel advisory urging its citizens to assess the risks of visiting the United States and to exercise caution.

The advisory, released by the Chinese Ministry of Culture and Tourism, cited the worsening China-U.S. economic and trade relations as well as concerns over the “safety situation” in the U.S.

The move comes shortly after China raised tariffs on American goods to 84%, marking a sharp escalation in the ongoing trade war.

Trump has announced plans to impose new tariffs on pharmaceutical imports in a bid to bring drug manufacturing back to the United States — and investors are already reacting.

“We’re going to be announcing, very shortly, a major tariff on pharmaceuticals,” Trump said Tuesday night.

The market response was swift. Shares of Eli Lilly fell 2.7% early Wednesday, while Pfizer dipped 2.4%. Merck and Johnson & Johnson also declined nearly 2% each. Overseas pharma giants weren’t spared either — Novartis dropped 5.8% and Roche Holding slid 4.6%.

Trump expressed concern that the U.S. no longer produces many of the medications Americans rely on. The proposed tariffs, he said, would reverse that trend by incentivizing domestic manufacturing.

Americans may be in for a bare-bones Christmas this year, as steep US tariffs on Chinese imports threaten the supply of festive decorations, according to a Reuters report.

Retailers in the US source nearly 87% of their Christmas goods, including artificial trees, ornaments, and lights, from China. But with trade tensions escalating and new duties in place, the seasonal supply chain is under strain.

“By mid-April, all the orders are usually in,” said the manager of a Christmas tree factory in China. “Now... it’s hard to say whether any orders will come in at all. Maybe American customers won’t buy anything this year.”

If shipments do arrive, consumers should expect to pay significantly more, that is, if they can find decorations on shelves at all. The fallout from the tariff war is now hitting home, just in time to dim holiday cheer.

President Donald Trump on Wednesday urged Americans to stay calm as US markets opened lower for the fifth straight session, following a sharp downturn triggered by escalating trade tensions with China.

“BE COOL! Everything is going to work out well,” Trump wrote on his Truth Social platform just three minutes after the markets opened in the red again. “The USA will be bigger and better than ever before.”

In a follow-up post, Trump added, “THIS IS A GREAT TIME TO BUY!!!” — a message that sparked a quick rally in Trump Media shares.

The company's stock, trading under the ticker symbol DJT, surged after Trump signed off the post with his initials, which some investors interpreted as a promotional nod. Trump Media owns Truth Social, the social media platform he frequently uses, though he usually only signs posts “DJT” when discussing topics unrelated to stocks.

The post came as markets continued to reel from fears of a global recession amid the intensifying tariff war between the US and China.

The European Union on Wednesday approved new tariffs targeting €21 billion ($23.2 billion) worth of American goods, striking back against 25% duties imposed by President Donald Trump on EU steel and aluminum exports last month.

A majority of the EU’s 27 member countries voted in favor of the move, with some of the new tariffs set to take effect starting mid-April.

The retaliatory measures are aimed at politically sensitive US regions, including soybeans from Louisiana, the home state of House Speaker Mike Johnson. Other targeted items include diamonds, poultry, motorcycles, and various agricultural products.

US markets wobbled on Wednesday after China announced it would impose an 84% tariff on American goods starting Thursday, intensifying the ongoing trade war with the US. The move came in response to President Donald Trump’s 104% tariffs on Chinese imports, which took effect just after midnight.

The Dow Jones Industrial Average fell 215 points (0.5%), while the S&P 500 hovered near flat. The Nasdaq Composite, however, rose 0.8%, buoyed by tech gains.

Stock futures had already extended losses earlier in the day after Treasury Secretary Scott Bessent said China "doesn’t want to come and negotiate" and called Beijing the "worst offender in the international trading system."

Adding to the gloomy outlook, JPMorgan CEO Jamie Dimon warned that a US recession is a “likely outcome” of the tariff escalation, reinforcing investor concerns about economic fallout from the deepening trade war.

Oil prices fell sharply on Wednesday after China announced steep new tariffs on US goods, intensifying its trade standoff with Washington.

Brent crude and US West Texas Intermediate (WTI) futures , key industry benchmarks, both dropped over 6 percent in morning trade. As of 11:53 GMT (17:23 IST), Brent was trading at $58.80 per barrel and WTI at $55.55.

Both benchmarks have now fallen for five straight sessions, weighed down by concerns that the escalating US-China trade war could hurt global economic growth and reduce fuel demand.

US Treasury Secretary Scott Bessent on Wednesday criticised China’s latest tariff retaliation, calling it a “loser” strategy that will hurt Beijing more than Washington.

“It’s unfortunate that the Chinese don’t want to come and negotiate,” Bessent told FOX Business. “They have the most imbalanced economy in modern history, and this escalation is a loser for them. They are the surplus country here.”

JPMorgan economists now forecast a 0.3 percent contraction in US GDP this year — a mild but significant reversal after a strong 2024.

“Markets aren’t always right,” Dimon noted. “But sometimes they are — especially when they’re pricing in uncertainty, both at a global level and for individual companies. That eventually affects how consumers feel, and it becomes hard to predict what happens next.”

Dimon said the market sell-off could further damage consumer confidence, leading to reduced spending and investment.

“I think probably that’s a likely outcome,” Dimon said when asked if a recession was coming. “When you see a 2,000-point decline in the Dow, it sort of feeds on itself. You feel like you’re losing money in your 401(k), your pension… You’ve got to cut back.”

JPMorgan Chase CEO Jamie Dimon on Wednesday warned that the US economy is likely heading toward a recession, as markets reel from President Donald Trump’s sweeping tariffs and China’s aggressive retaliation.

Speaking to Fox Business, Dimon pointed to growing financial instability as the trade war between the US and China escalates, sparking widespread market panic. Stock futures and bond markets saw sharp movements early Wednesday, as traders reacted to the deepening rift between the world’s top two economies.

Wall Street saw another bruising session. Dow futures dropped over 800 points, while the 10-year Treasury yield jumped by 20 basis points — a clear sign of market stress.

Trump described his tariffs as “reciprocal,” aiming to match what other countries charge the US. But experts told CNN that his method is overly simplistic and doesn’t actually account for real tariff rates.

Instead, the administration calculated tariff rates based on a country’s trade deficit with the US, dividing that number by exports, then halving the result “as a gesture of kindness.”

This formula doesn’t factor in actual trade policies and could lead to unintended consequences for US companies and consumers.

As one market analyst told CNN: “The Trump administration is using a sledgehammer to address a long list of trade complaints.”

At a WTO meeting, China warned that Trump’s actions could further destabilise global trade. Calling the US move “reckless,” China said it firmly opposes the tariffs and urged the WTO to investigate the impact.

“Reciprocal tariffs won’t solve trade imbalances,” China said. “They’ll only backfire and hurt the US itself.”

China reacted swiftly, accusing the US of damaging the global trading system. In addition to matching tariffs, Beijing announced export controls on 12 US companies and added six more to its “unreliable entity list”, effectively banning them from operating in China.

China also filed a complaint with the World Trade Organization (WTO), saying the US move violates global trade rules.

US President Donald Trump has taken his toughest stance yet in a growing trade conflict with China, a country that could match the US in a full-blown tariff war.

Trump’s latest move imposes massive tariffs of at least 104 percent on Chinese goods entering the US. This marks a major escalation in the US-China trade tensions and could push up prices for American consumers. The decision is also part of Trump’s broader tariff campaign, which is now starting to impact people across the world.