Donald Trump reveals his long-awaited package of tariffs, which are expected to make a huge impact on global trade.
Thursday 3 April 2025 05:47, UK
Please use Chrome browser for a more accessible video player
Live reporting by Bhvishya Patel
By Helen-Ann Smith, Asia correspondent in Beijing
China was expecting further tariffs and it will have been preparing, but no degree of preparation could effectively counter the immediate impact this latest round of tariffs will have on China’s economy.
Once you add together tariffs levied earlier this year to those still in place from Trump’s first term, all Chinese goods will now face import taxes of over 50%, some potentially as high as 70%.
Such levels realistically render trade with America all but impossible for the vast majority of businesses.
Given exports account for 20% of China’s entire economy and trade with America makes up about 15%, the impact will be huge and wide reaching.
Experts are already predicting job losses could be in the millions, swathes of small businesses that populate China’s complex supply chains could go under and there is a high chance China’s growth target of around 5% will be missed.
For a country already grappling with a slowing economy and high unemployment it all amounts to a serious challenge.
There’s a sense people have been particularly caught off guard by the targeting of other smaller Southeast Asian economies.
Reciprocal tariffs of 46% on Vietnam , 49% on Cambodia and 36% of Thailand are not only catastrophic for those lower income economies , but they also put a hard road block on an increasing trend of Chinese companies relocating to avoid tariffs – even work-arounds are now not an option.
The impact on Asia as a broader region was reflected in the markets, lower on opening and a significant slide in the futures trading, leading regional economies Japan, South Korea and Indonesia have also taken big hits.
There will almost certainly be frenetic negotiations under way behind the scenes, but China will absolutely need to be seen to respond, the ministry for commerce has already said as much in a statement.
The question is when and how far will it go. Authorities here can ill afford further escalation, but will not want to be seen to be bullied.
The Asian markets have tumbled after Donald Trump announced a wave of tariffs on imports across the globe.
Stocks and currencies in Vietnam and Thailand tanked this morning, as the two Asian countries face among the highest reciprocal rates under the president’s sweeping new levies that threaten to escalate a global trade war.
Vietnam’s benchmark stock index fell as much as 5.4% to a more than two-month low, and the dong touched an all-time low of 25,802 per dollar.
Thailand’s baht weakened to its lowest level since mid-January and its equities slipped as much as 1.3%.
Earlier today, Vietnamese Prime Minister Pham Minh Chinh held an urgent cabinet meeting, state media reported, while Thai Prime Minister Paetongtran Shinawatra said the country will negotiate with the US.
And in Japan Nikkei 225 opened over 4% lower today – at 9.26am (local time), the benchmark was down 3.31%.
Besides Chinese imports, which will be hit with a 34% tariff on top of the 20% Trump previously imposed, Vietnam faces 46% levies, Thailand 36%, South Korea 25% and India faces 26%.
Trump’s new levies have rattled markets as fears grow that a full blown trade war could trigger a sharp global economic slowdown.
China’s yuan touched a seven-week low, and stocks tumbled 0.4%.
South Korea’s won dropped 0.4%, and shares fell as much as 2.7% to a three-month low.
The Indian rupee weakened 0.3%, while Malaysia’s ringgit fell as much as 0.6% to a two-month low.
European Commission president Ursula von der Leyen has been giving her first reaction after Donald Trump’s announcement of a 20% tariff on all goods from European Union countries.
She said they would have “dire consequences” for millions of people around the world – and that there seemed to be “no order in the disorder” of the actions of the US.
The EU last month announced €26bn of countermeasures against a range of US goods – scheduled to take effect this month – in response to separate 25% tariffs on European steel and aluminium.
“We are already finalising the first package of countermeasures in response to tariffs on steel,” said Von der Leyen on Thursday morning.
“We’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.”
She added: “We will stand together, our unity is our strength.”
China, facing a 34% tax, says it will “resolutely” hit back at the US and “take countermeasures to safeguard its own rights and interests”.
“China urges the United States to immediately cancel its unilateral tariff measures and properly resolve differences with its trading partners through equal dialogue,” said the commerce ministry.
It comes as China’s yuan slumped to a seven-week low against the US dollar after Donald Trump unveiled sweeping reciprocal tariffs that were particularly heavy on China and its trading partners.
The onshore yuan fell to 7.3060 per dollar, its weakest since 13 February, while the offshore yuan dropped to 7.3485 per dollar in the late New York session, the lowest level since 3 February.
Today, the UK and much of the world wakes up to a changed landscape for global trade.
Last night, Donald Trump finally revealed his long-awaited package of tariffs, with virtually all countries affected, it seems.
He did so by lifting a chart listing countries and their impending levies while on stage in the White House’s Rose Garden.
The key figure for the UK is 10% – a tariff rate far lower than other countries, with the EU facing 20%.
That 10% figure is the baseline for all countries, with a special set of rates for 60 countries deemed by Trump to be the “worst offenders”.
These levies will both come into effect within a week.
Until then, eyes are now on the likes of the EU, China and on Westminster as nations around the world weigh up how to respond – if at all.
As our economics and data editor Ed Conway explained, there will be consequences either way – and this saga is far from over.
Stay with us here as we keep track of developments.
But we’ll be back in the morning with all the latest news.
Before we check out, here’s a brief rundown of what happened on Donald Trump’s “Liberation Day” for the US…
Watch: What you need to know about Trump’s tariffs
Donald Trump brandished a chart during his Rose Garden speech highlighting his sweeping new tariffs.
For those of you not eagle-eyed enough to spot every single country on that list and which tariffs now apply to them, here’s a rundown…
By Adam Parsons, Europe correspondent
There will be a response from the European Union – the question is how soon, and how tough.
A symbolic reprisal is one choice – putting tariffs on classic American products such as Harley-Davidson motorbikes or bottles of bourbon.
That won’t damage the European economy, but it won’t make much of a difference either.
There’s a reluctance to slap wide-ranging, indiscriminate tariffs simply because that would increase costs for many European manufacturers.
So something more targeted may look appealing and that could mean going after the tech giants – Facebook, Apple, Google, Amazon, for example.
Companies who have already had rows with EU regulators and are seen as being, to varying extents, close to the White House. If Europe could specifically target Tesla, it probably would.
There are also those suggesting the EU should hold fire for the moment, confident that Trump’s tariffs will backfire and keen that the effects are visible.
One fear is that some of the cheap goods that were destined for US markets will now be diverted to Europe, flooding its market.
Another fear is how the Windsor Framework will be affected, now that there are different US tariffs on either side of the Irish border.
And, finally, there is that insult from the president, who called the European Union “pathetic”.
A few minutes later, a senior EU diplomat sent me a message saying “the US is Brexiting the world, but you can’t stop the march of folly”.
Transatlantic relations are getting even icier.
We can now bring you various global reactions to Trump’s tariff announcement.
In Ireland, Taoiseach Micheal Martin says he can see “no justification” for the tariffs, adding that Ireland will reflect with its “EU partners on how best to proceed”.
Italian Prime Minister Giorgia Meloni says US tariffs are “wrong”, adding she hopes to work with America and Europe to avoid a trade war that would weaken the West.
Canadian Prime Minister Mark Carney said Canada will fight tariffs with countermeasures.
“It’s essential to act with purpose and with force, and that’s what we will do,” he told reporters.
Australia received a new tariff of 10%, which PM Anthony Albanese says is “totally unwarranted” and will change the perception of the two countries’ relationship.
“These tariffs are not unexpected, but let me be clear, they are totally unwarranted,” he says.
European Commission president Ursula von der Leyen will make a statement responding to the 20% tariffs on EU goods at 4am UK time tomorrow.
Donald Trump told countries how they will be able to end the tariffs levied against them during his speech.
He said: “To all of the foreign presidents, prime ministers, kings, queens, ambassadors and everyone else who will soon be calling to ask for exemptions from these tariffs. I say terminate your own tariffs, drop your barriers, don’t manipulate your currencies.”
US treasury secretary Scott Bessent has already warned countries not to respond to the tariffs.
“My advice to every country right now is, do not retaliate,” he tells Fox News. “Sit back, take it in, let’s see how it goes. Because if you retaliate, there will be escalation.”
Be the first to get Breaking News
Install the Sky News app for free