Trump Tariff Highlights: Trump claims US in ‘driver’s seat’ after tariff announcements, says ‘now they will do anything for us’

The S&P 500 dropped 3.4% while the Dow Jones Industrial Average tumbled1200 points. The Nasdaq Composite slid 3.8%

According to a Reuters update quoting trade ministry sources, the country is mulling the possibility of ‘providing help’ to affected export sectors.

Donald Trump’s latest tariff announcement could impact Israel’s exports of machinery and medical equipment, an Israeli finance ministry official told Reuters on Thursday. As part of a sweeping new tariff policy, unspecified Israeli goods exports to the United States face a 17% tariff. The U.S. is Israel’s closest ally and largest single trading partner.

US Commerce Secretary Howard Lutnick told CNBC that the newly announced tariffs would push countries to reexamine their policies and provide greater market access for American products.

“This is the reordering of fair trade. It’s about those non-tariff trade barriers. That’s what we are addressing,” he said on “Squawk Box.

The US dollar slid broadly on Thursday after the Trump administration announced sweeping reciprocal tariffs against major trading partners. Investors have since sought safe haven in the Yen and Swiss franc.

Futures for the S&P 500 slumped 3.4% before the bell, while Dow Jones Industrial Average futures lost 2.8%, auguring potential losses when US markets reopen in a couple hours. Nasdaq futures tumbled 3.8%. Oil prices fell more than 4% and the US dollar hit its lowest level against the Japanese yen since early October. It was the fourth straight day that US markets have begun falling early, though unlike the previous three, it appears unlikely that stocks will recover by day’s end.

Sterling climbed to a six-month high against the dollar on Thursday as traders abandoned the US currency after President Donald Trump’s expansive trade barriers stoked fears of a global slowdown in economic growth.

Russia, Cuba and North Korea did not appear on the list of countries facing higher ‘reciprocal’ tariffs released by the White House. US Treasury Secretary Scott Bessent told Fox News that the United States did not trade with Russia and Belarus and that they were under sanctions. Goods trade between Russia and the United States was $3.5 billion last year, according to U.S. figures. In 2021, the year before the Russian invasion of Ukraine, it was $36 billion

The World Trade Organization chief told member states on Thursday that it had received “many” questions about the impact of U.S. President Donald Trump’s tariffs on trade and would respond to their questions, according to a letter.

“Many of you have been in touch about the U.S. announcement on tariffs, asking for the Secretariat to provide an economic analysis of the impact of these tariffs and any potential reaction on your trade,” Director-General Ngozi Okonjo-Iweala wrote in a letter to ambassadors dated April 3 and seen by Reuters.

UK minister Jonathan Reynolds said that he was launching a request for “inputs from British businesses on the implications of retaliatory action on tariffs”.

The European Union’s trade commissioner Maros Sefcovic will talk to his U.S. counterparts tomorrow following the United States’ tariffs announced Wednesday, he said on social media platform X.

“We’ll act in a calm, carefully phased, unified way, as we calibrate our response, while allowing adequate time for talks. But we won’t stand idly by, should we be unable to reach a fair deal”, Sefcovic added

According to a Reuters report quoting a senior official, the European Union member states are set to vote on countermeasures to the United States’ steel and aluminum tariffs on April 9

Vietnam, where companies like Apple, Nike and Samsung Electronics have large manufacturing operations, appears particularly exposed. Its exports to the United States were worth $142 billion last year, nearly 30% of its gross domestic product.

Vietnam’s benchmark stock index slid 6.7%, on course for its biggest one-day drop since January 2021 while its currency, the dong, lost 0.7% to hit an all-time low.

Prime Minister Pham Minh Chinh ordered up a task force to address the situation after an urgent cabinet meeting early on Thursday, state media said. He noted the country’s 8% growth target for this year remained unchanged.

Singapore’s trade minister Gan Kim Yong told a press conference on Thursday that the financial hub was ‘disappointed’ by the announcement. He also noted that the city-state could have taken countermeasures under the free-trade agreement in force since 2004, but has chosen not to do so.

“Retaliatory import duties will just add cost to our imports…If there are no specific concerns, then it’s more difficult to argue or to negotiate,” Reuters quoted him as saying.

Singapore was hit by Trump’s 10% base tariff on imports and the government has said it will try to engage with the US to understand Trump’s areas of concern.

The US economy may slip into recession this year amid turmoil over sweeping reciprocal tariffs announced by President Donald Trump. Reuters quoted Barclays as indicating that economic growth is likely to contract to 0.1% by end of 2025.

The Chinese Yuan dropped to its lowest level in seven weeks while stock markets slumped on Thursday after US President Donald Trump announced 34% tariffs for the country. Chinese imports will be hit with tariffs of 34%, on top of the 20% Trump had previously imposed, bringing the total new levy to 54%. Countries in China’s supply chain were hardest hit — with Vietnam, Cambodia and Laos getting slapped with tariffs between 46% and 49% respectively.

The Chinese commerce ministry said the country “firmly opposes” the reciprocal tariffs and “will take countermeasures to safeguard its own rights and interests”. US President Donald Trump had imposed a 34% reciprocal tariff Beijing during his announcement on Wednesday.

Prime Minister Paetongtarn Shinawatra assured that Thailand has a “strong plan” to address the newly imposed 36% US tariff. The government is actively seeking negotiations to reduce the levy and mitigate its impact. Other Southeast Asian nations, including Vietnam and Cambodia, have been hit with even steeper tariffs—46% and 49%, respectively.

Turning to the US’s recent announcement of reciprocal tariff, Rahul Gandhi warned, “Our ally has suddenly decided to impose a 26 per cent tariff, which will devastate our economy–our auto industry, pharmaceutical industry, and agriculture are all in line.”

President Emmanuel Macron is set to meet with representatives from affected sectors to discuss the impact of the 20% tariff imposed on EU goods by the US. The meeting aims to evaluate measures to mitigate economic disruptions.

The new trade reality has shaken France, like the rest of Europe. While reacting to the newly imposed reciprocal tariffs by the US, government spokeswoman Sophie Primas said, “We are ready for this trade war.” The European Union’s 27 member nations are currently facing new tariffs across the board of 20% and higher tariffs on a few sectors as well. Primas described Trump’s announcement as “a heavy blow for the global economy, for the European economy and for the French economy in particular”.

The US has justified these tariffs as a means to boost domestic manufacturing and address its trade deficit, which stood at $35.31 billion with India in 2023-24. While the Indian commerce ministry is analysing the impact, some industry experts suggest that India’s position remains relatively favorable compared to its competitors.

The Federation of Indian Export Organisations (FIEO) acknowledged the challenges posed by the new duties but emphasised that a proposed Bilateral Trade Agreement could help mitigate the effects. The Global Trade Research Initiative (GTRI) suggested that while the US’s protectionist measures may disrupt trade, they could also present an opportunity for India to capitalise on global supply chain realignments. To maximise these benefits, India must enhance ease of doing business, invest in infrastructure, and ensure policy stability.

According to Madhavi Arora, the chief economist at Emkay Global Financial Services, India’s exports to the US could face a loss of $33 billion due to the new tariff rates. This would lead to a 0.9% decline in India’s GDP, not factoring in any potential responses or retaliatory actions.

The US retaliatory tariffs present a significant challenge to India’s gems and jewellery exports, according to the Gem and Jewellery Export Promotion Council (GJEPC), which urged the government to take measures to protect the industry’s long-term interests. The US has imposed a 27% reciprocal tariff on Indian goods, citing high import duties levied by New Delhi on American products. The move is part of the Trump administration’s broader strategy to reduce the US trade deficit and boost domestic manufacturing.

The GJEPC stated that the newly announced tariffs would place a substantial burden on both Indian exporters and American consumers. “In the long term, we anticipate a reshaping of global supply chains. In the short run, maintaining India’s current export volume of $10 billion to the US market will be challenging,” the council noted.

UK Prime Minister Keir Starmer reaffirmed that “nothing is off the table” regarding Britain’s response to the tariffs. He emphasized the need to secure a strong economic deal while ensuring the stability of British industries. The UK’s manufacturing sector, particularly automobile companies, faces significant challenges as US tariffs on British vehicle exports rise to 25%.

European Commission President Ursula von der Leyen condemned the US tariffs as a blow to the global economy, stating that the EU is preparing countermeasures. She confirmed that an initial package of tariffs would target US steel imports, with additional measures in development to protect European interests.

During Prime Minister Narendra Modi’s visit to Washington in February, India and the US agreed to negotiate a bilateral trade agreement, aiming to increase trade volumes to $500 billion by 2030. The first phase of this agreement is expected to be finalized by fall 2025. A trade agreement typically involves reducing or eliminating customs duties on traded goods while easing regulations to promote trade in services and investments.

As part of its broader tariff strategy, the US has imposed duties of 54% on Chinese goods, 46% on Vietnamese exports, 37% on Bangladeshi products, and 36% on Thai imports. The evolving trade landscape underscores the need for India to adopt a strategic approach in navigating these new economic challenges and opportunities.

The FTSE 100 index fell over 1.4% at the start of trading following Trump’s tariff announcement. Investors are worried about the potential global economic consequences of US trade policy.

Japan’s Nikkei share average plunged to an eight-month low on Thursday after U.S. President Donald Trump announced a sweeping set of reciprocal tariffs, including a higher-than-expected 24% duty on Japanese goods. The Nikkei tumbled as much as 4.6% in early trading, hitting 34,102.00—its lowest level since August 7. By the close, losses had eased, with the index settling 2.8% lower at 34,735.93. Meanwhile, the broader Topix index also saw a sharp decline, falling as much as 4.3% before recovering slightly to end the session down 3.1%.

“Contrary to some South Asian nations’ expectations of relief from US global trade policy, reciprocal and discounted tariffs have been imposed on imports from India to the US. While some products in transit may face disruption, in the medium-term, the impact shall stabilise. The initial focus is likely on luxury items and auto parts. It is important to remember that if a trading partner is dissatisfied, they have the right to negotiate, just as India does. A process of re-negotiation shall ensue until both nations reach acceptance,” said Deepak Bhawnani, Founder of Alea Consulting.