 "US President Donald Trump")
Donald Trump, acknowledging the turbulence in the stock markets, said on Thursday that there will “always be transition problems” and “difficulty”, as turmoil continues in the US and Asian markets amid uncertainty over his global tariff policies.
His comments came after the White House announced 145 per cent tariffs on some Chinese products — not the earlier reported 125 per cent — due to an existing 20 per cent levy on items linked to the drug fentanyl.
Despite the tensions, Trump expressed hope for a deal with China, saying, “I think we’ll end up working something out that’s very good for both countries.”
US markets decline
US stock markets opened in the green but ended the day with a sharp decline. By the close, the S&P 500 had dropped 3.6 per cent, the Dow Jones fell 2.5 per cent, and the Nasdaq slipped 4.31 per cent. Warner Bros Discovery shares plunged 14 per cent, while Amazon and Apple both fell by 7 per cent.
Volatile Asian markets
Asian markets had a shaky start. Japan’s Nikkei saw a significant fall, dropping 4.61 per cent to 33,014.84. South Korea’s KOSPI fell 1.5 per cent to 2,408.38, and Australia’s ASX 200 was down 1.85 per cent.
Impact Shorts
More ShortsMeanwhile, Shanghai and Hong Kong’s Hang Seng Index opened flat and showed little movement.
Trump’s ‘Liberation Day’ tariffs and a U-turn
President Donald Trump announced sweeping new tariffs, including a 34 per cent tax on imports from China and 20 per cent on goods from the European Union, calling it ‘Liberation Day’.
However, following widespread backlash, President Trump abruptly reversed his sweeping tariff policy just hours after it was implemented. He announced a 90-day suspension of his reciprocal tariffs, excluding China from this temporary suspension.
The reversal led to a temporary rebound in US stock markets, with the S&P 500 experiencing its largest single-day gain since 2008.