Latest: Trump's tariffs slam world markets in biggest blow since pandemic hit in 2020

Washington, Apr 4 (AP) Shares slid further in Europe and Asia and US futures also fell Friday as investors counted the potential costs of U.S. President Donald Trump's latest set of tariffs.

Trump announced a minimum tariff of 10 per cent on global imports, with the tax rate running much higher on products from certain countries like China and those from the European Union. Smaller, poorer countries in Asia were slapped with tariffs as high as 49 per cent.

Everything from crude oil to Big Tech stocks to the value of the US dollar against other currencies has fallen. Even gold, a traditional safe haven that recently hit record highs, pulled lower after Trump announced his “Liberation Day” set of tariffs,' which economists say carries the risk of a potentially toxic mix of weakening economic growth and higher inflation.

US benchmark crude oil shed USD 2.70 to USD 64.25 a barrel after major oil producers announced they plan to increase production. Brent crude, the international standard, was down USD 2.63 at USD 67.51 a barrel.

In other trading early Friday, the US dollar rose to 146.46 Japanese yen from 146.06. The yen is often used as a refuge in uncertain times, while Trump's policies are meant in part to weaken the dollar to make goods made in the US more price competitive overseas. The euro edged lower, to USD 1.0976 from USD 1.1055.

Here's the latest: Asian and European shares slide further, US dollar takes a hit In European trading, Germany's DAX lost 2 per cent to 21,289.53 after the country reported factory orders were unchanged in February as manufacturers prepared for steeper duties on their exports.

The CAC 40 in Paris slipped 1.6 per cent to 7,478.17 while Britain's FTSE 100 gave up 1.7 per cent to 8,331.44.

Markets in Shanghai, Taiwan, Hong Kong and Indonesia were closed for holidays, limiting the scope of Friday's sell-offs in Asia.

Tokyo's Nikkei 225 lost 2.8 per cent to 33,780.58, while South Korea's Kospi sank 0.9 per cent to 2,465.42.

The two US allies said they were focused on negotiating lower tariffs with Trump's administration.

Australia's S and P/ASX 200 dropped 2.4 per cent, closing at 7,667.80.

In other trading early Friday, the US dollar rose to 146.46 Japanese yen from 146.06. The yen is often used as a refuge in uncertain times, while Trump's policies are meant in part to weaken the dollar to make goods made in the US more price competitive overseas. The euro edged lower, to USD 1.0976 from USD 1.1055.

China car association says prices will go up The China Association of Automobile Manufacturers called on the US to “correct its wrong actions”.

It said the tariffs “will further raise car prices, and impose additional burdens on consumers in various countries including Americans and have a negative impact on global economic recovery”.

China is one of the major exporters of car parts, many used in car repairs. For example, about 6 in every 10 auto replacement parts used in US auto shop repairs are imported from Mexico, Canada and China. The new taxes are also estimated to make cars imported into the US thousands of dollars more expensive.

Chinese industry groups say new tariffs destroyed normal order of trade with US Chinese industry groups on Friday sharply criticised the US tariffs as well as the closing of the de minimis loophole which had allowed low value goods to be imported tax-free.

“America's action crudely destroyed the normal order of trade between the US and China, severely impacted cooperation between global industries, and greatly harmed the rights of consumers, including American citizens,” said a statement from the China Light Industry Association, which represents the interests of light manufacturing businesses.

The tax exemption, which applies to packages valued at USD 800 or less, has helped China-founded e-commerce companies like Shein and Temu to thrive while cutting into the US retail market.

“We call on the international community to jointly resist this trade bullying, and firmly safeguard an equal and mutually beneficial international trade system.” The China National Textile and Apparel Council chimed in as well, with a statement Friday saying they “supported the Chinese government's forceful measures” as the US has “Damaged the resilience of the global textile industry's supply chain".

Vietnam says tariffs fail to reflect the spirit of the comprehensive strategic partnership Vietnam said it regretted the US decision to impose reciprocal tariff of 46 per cent on its exports to America.

“We believe that the decision is not in line with the reality of mutually beneficial economic and trade cooperation between the two countries,” Pham Thu Hang, the spokesperson for Vietnam's foreign ministry said Friday in a statement reported by state media.

She said Vietnam had actively engaged with the US to address concerns, promote ties on trade and work towards fair, mutually beneficial trade. She added that it failed to reflect the spirit of the comprehensive strategic partnership that the two countries had signed in 2023.

Former President Joe Biden visited Hanoi when the southeast Asian nation elevated the US to its highest diplomatic status, comprehensive strategic partner. At the time, Biden stressed this showed how far the relationship has evolved from what he described as the “bitter past” of the Vietnam War.

“If enforced, would negatively impact bilateral economic and trade relations as well as the interests of businesses and people in both countries,” said Hang.

The tariffs imposed on Vietnam are among the highest of any country, more than competitors like Thailand and Malaysia. Analysts say that the tariffs will harm Vietnamese export sectors like electronics, textiles, footwear and seafood.

Vietnam will continue discussions with the US to “find practical solutions” for developing sustainable bilateral economic relations that ensure the interest of businesses and people in both countries.

Deputy Prime Minister and former finance minister Ho Duc Phoc is scheduled to visit the US and Cuba from April 6 to 14 to discuss and negotiate on trade matters.

Vietnamese exports to the US in 2024 totally nearly USD 120 billion, making up nearly a third of the country's total export turnover.

Taiwan's president will support impacted industries, says tariffs unreasonable Taiwan's President Lai Ching-te said he will offer the “greatest support” to industries impacted by the new tariffs. Lai acknowledged that Taiwan had a trade surplus with the US, but that much of it came from Taiwanese industries trying to fulfil the US demand for Taiwan's information technology products.

“We feel that this is unreasonable and are also worried about the subsequent impact these measures may have on the global economy,” Lai said in a statement on his Facebook page Thursday night.

Lai said he instructed Premier Cho Jung-tai to work closely with industries that are impacted and to communicate with the public about their plans to stabilise the economy. (AP) PY PY

Source: PTI