Donald Trump announces 90-day tariff pause; DOW shoots up 2,400 points, NASDAQ 1,400

China has requested WTO dispute consultations with the United States concerning “reciprocal tariffs”, the World Trade Organisation said on Tuesday.

The United States is starting to resemble an emerging market more than a developed country, the head of pan-European stock exchange operator Euronext said on Tuesday

“Fear exists all over. The country (United States) is unrecognisable and we are living in a transition period. There is a certain form of mourning, because the United States that we had known for the most part as a dominant nation resembled the values and institutions of Europe and now resembles more an emerging market,” Stephane Boujnah told France Inter radio.

Indonesia announced a raft of concessions on US imports Tuesday, including reducing taxes on electronic goods and steel, ahead of trade negotiations with Washington. The country will send a high-level delegation to the United States next week in hopes of securing a deal to ease the impact of a 32% tariff due to take effect on Wednesday.

University of Chicago Economics Professor Brent Neiman, whose paper was cited by the Trump team as a methodology to calculate tariffs says, ‘they got it wrong. Very wrong.’

‘My first question, when the White House unveiled its tariff regime was: How on Earth did they calculate such huge rates?’ he wrote in an op-ed for the New York Times.

Neiman explained that the Trump administration erroneously added a 25% rate to the formula he and his colleagues had created – meaning that the tariff rates Trump imposed should all be four times less.

‘Where does 25 per cent come from?’ Neiman asked, rhetorically. ‘Is it related to our work? I don’t know.’

‘Our findings suggest the calculated tariffs should be dramatically smaller – perhaps one-fourth as large.’ 

BlackRock has downgraded US equities to neutral from overweight on a three-month horizon. Experts expect “more pressure on risk assets in the near term given the major escalation in global trade tensions.”

Meanwhile, Goldman Sachs said the equity selloff could well turn into a longer-lasting cyclical bear market as recession risks mount.

Several international equity benchmarks have sustained losses that technically meet the definition of a bear market. This includes the S&P 500 Index, which briefly sank 20% below the record high set less than two months ago.

“Early next week, we will basically be presenting our plan. We’ll explain what the roadmap is, then consult with member states, consult with industries, before we come forward with the final measures that we will then present to member states to vote on,” spokesperson Olof Gill told reporters in Brussels.

In a response to China saying it will fight till the end US Treasury Secretary Scott Bessent said the country holds a substantial advantage over China as the two nations exchange threats in a burgeoning trade war.

“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent told CNBC. “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”

“If we put up a tariff wall, the ultimate goal would be to bring jobs back to the U.S. But in the meantime, we will be collecting substantial tariffs,” Bessent further added.

“If we’re successful, tariffs would be a melting ice cube, in a way, because you’re taking in the revenues as the manufacturing facilities are built in the U.S., and there should be some level of symmetry between the taxes we begin taking in with the new industry from the payroll taxes as the tariffs decline.”

European pharma companies warned the European Commission president during a meeting on Tuesday that US President Donald Trump’s tariffs would expedite the industry’s shift away from Europe and toward the United States

Two industry sources told Reuters that the pharma trade lobby EFPIA had called on EU President Ursula von der Leyen to push for “rapid and radical action” to mitigate the “risk of exodus” to the United State.

US Treasury Secretary Scott Bessent said on Tuesday that tariff negotiations are the result of multiple calls from other countries and not sliding financial markets.

“Everything is on the table,” Bessent said in an interview with CNBC. He also added that President Donald Trump will be personally involved in negotiations.

According to a CNBC update, US Treasury Secretary Scott Bessent insisted on Tuesday that the country held a substantial edge over China when it came to a trade war.

Fast-fashion company Shein’s move to diversify its production base beyond China is reportedly facing resistance from Beijing, as the Chinese government tries to curb a growing trend of manufacturers relocating in response to escalating US tariffs under Donald Trump, Bloomberg reported.

The Bloomberg report further said that China’s Ministry of Commerce has reached out to Shein and several other firms, urging them to hold off on shifting supply chains to other countries. The behind-the-scenes pressure reportedly ramped up just days before Trump unveiled his latest round of “reciprocal tariffs,” which has intensified concerns about a broader manufacturing exodus from China.

The outreach is seen as part of Beijing’s broader effort to protect its position as the world’s manufacturing hub amid rising global trade tensions. While it’s unclear which other companies were contacted, the message was clear that China wants key players like Shein to stay anchored, even as businesses seek alternative routes to sidestep the growing burden of tariffs.

UK Finance Minister Rachel Reeves said she will meet US Treasury Secretary Scott Bessent “shortly” today. Reeves was asked for further details of the negotiations London is holding with the United States as it seeks to secure an economic deal.

Norway’s central bank is closely monitoring the current situation in financial markets and will be prepared for continued volatility, Norges Bank Governor Ida Wolden Bache told Reuters on Tuesday.

European Commission President Ursula von der Leyen on Tuesday called on China to seek a negotiated solution to the escalating trade tensions sparked by President Trump’s sweeping import tariffs.

In a phone call with Chinese Premier Li Qiang, von der Leyen emphasised the shared responsibility of the European Union and China — two of the world’s largest markets — to uphold a strong, reformed global trading system that is “free, fair, and based on a level playing field”, her office said in a statement.

The leaders also discussed the creation of a joint monitoring mechanism to track potential trade diversions caused by the U.S. tariffs. The EU has expressed concerns that China might redirect its low-cost exports, originally intended for the US, into European markets as a workaround.

Indonesia rolled out a series of concessions for US imports on Tuesday, slashing taxes on electronic goods and steel as it prepares for high-stakes trade talks with Washington in response to President Donald Trump’s sweeping tariffs.

Indonesia, southeast Asia’s largest economy, is sending a high-level delegation to the United States next week, hoping to secure a deal that could soften the blow of a 32% tariff set to take effect on Wednesday.

As part of its negotiating strategy, Indonesia plans to ramp up purchases of key American exports, including liquefied petroleum gas (LPG), liquefied natural gas (LNG) and soybeans. “We are preparing a comprehensive package to show our commitment to strong trade ties with the US,” said Chief Economic Minister Airlangga Hartarto, who will lead the delegation.

Three major Japanese companies have postponed plans to raise a combined 100 billion yen ($678 million) through yen-denominated bonds, citing market volatility triggered by U.S. President Donald Trump’s tariff announcements, according to company sources.

Japan’s largest brewer, Asahi Group Holdings, shelved a 50 billion yen ($340 million) bond issuance originally scheduled for this month due to the ongoing financial turbulence, a company spokesperson confirmed. Suntory Holdings also delayed a 10 billion yen subordinated bond sale that was set for pricing this week. Nissin Foods, known for its instant noodles, postponed a 40 billion yen bond issuance, although it declined to offer further details.

The cancellations reflect deepening unease in financial markets amid fears that the U.S. tariff offensive could escalate into a full-blown global trade war, dragging the world economy into recession.

Though Asian stocks rebounded on Tuesday from one-year lows and U.S. futures ticked higher, investor sentiment remained fragile as hopes lingered for potential negotiations to ease trade tensions.

(With inputs from Reuters)

European shares rose from 14-month lows on Tuesday after four straight sessions of heavy selling, although investors’ mood remained sensitive to tariff-related developments.

The pan-European STOXX 600 was up 1.1% by 0748 GMT, after shedding 12.1% in just the past four sessions as investors worried about a possible global recession triggered by the recent escalation in the trade war.

As of Monday’s close, the index declined 17.9% from its all-time high hit on March 3.

Thailand will increase imports from the United States, lower some high taxes and address non-tariff barriers, Finance Minister Pichai Chunhavajira told reporters on Tuesday.

The new tariff on Thailand of 36% is among the higher rates imposed by the Trump administration

Niutanqin, a WeChat account affiliated with the state news agency Xinhua, has laid out six countermeasures China is mulling in response to U.S. tariff threats.

The six key measures laid out by the outlet include –

1. Significant tariff increases on U.S. agricultural products such as soybeans and sorghum.

2. Plan to ban import of US poultry into China.

3. Suspending Sino-U.S. cooperation on fentanyl-related issues.

4. Countermeasures in the service trade sector.

5. Banning the import of U.S. films into China.

6. Investigating the intellectual property benefits of U.S. companies operating in China.

President Donald Trump has rejected a European Union proposal that sought to drop tariffs on all bilateral trade in industrial goods with the US. This means new 20% tariff on all EU imports will come into effect from Wednesday onwards.

Trump accused EU of maintaining other barriers to trade and said the offer from European Commission President Ursula von der Leyen is not enough to reset the transatlantic trading relationship.

“The European Union has been very bad to us,” he said. “We’re paying them to guard them militarily and they are screwing us on trade, so that’s not a good combination.”

A new 31% tariff imposed by former US President Donald Trump on imports from South Africa is expected to severely impact the country’s citrus industry, potentially affecting 35,000 jobs, the Citrus Growers’ Association (CGA) said Tuesday.

Announced on April 2 as part of a broader tariff policy, the move threatens South Africa’s $100 million annual citrus exports to the US, which account for about 5–6% of total exports. The CGA noted the tariff would add $4.50 per carton, making South African citrus less competitive in the US market and jeopardising the livelihoods of thousands in the agricultural sector.

Elon Musk, Tesla CEO and tech billionaire, reportedly made direct but unsuccessful appeals to US President Donald Trump over the weekend to reverse newly announced tariffs, according to the Washington Post. Citing two sources familiar with the matter, the report highlights growing tensions between Musk and Trump, marking their most significant public disagreement.

The move follows Trump’s unveiling of a 10% baseline tariff on all US imports, with increased duties on several countries. Musk, who has advised Trump and advocated for reduced public spending, also called for zero tariffs between the US and Europe during a virtual event with Italy’s League Party.

Russia’s Central Bank Governor Elvira Nabiullina said the country is assessing the potential impact of rising US tariffs and fluctuations in global oil prices on its economy, according to state news agency TASS. The analysis aims to gauge possible economic risks amid growing global trade and energy market uncertainties.

China’s National Development and Reform Commission (NDRC) held a meeting in Beijing with key private firms including Trina Solar, Didi, and Goertek to gather input on responding to potential additional US tariffs. NDRC Chairman Zheng Shanjie attended the session.

The discussion follows former US President Donald Trump’s threat to raise tariffs on Chinese imports to over 100%, prompting strong opposition from Beijing. China has reiterated that it will not yield to what it called US “blackmail,” signaling its intent to stand firm amid rising trade tensions.

Taiwan’s Foreign Minister Lin Chia-lung on Tuesday said that Taiwan is ready to discuss the tariff issue with the United States at any time, reported Reuters. This statement came a day after Taiwan’s stock market dropped due to trade concerns. Taiwan, a major semiconductor producer, faces a 32% tariff and was singled out by US President Donald Trump for having one of the highest trade surpluses with the US.

After Asian markets’ positive performance, the BBC reported that there are indications that the European shares will also see a rebound wen trading begins at 08:00 BST morning. The futures market suggests that the UK FTSE 100 share index may open 2% higher, the report said. However, one cannot be dependent on futures market as the tariff mayhem has caused a lot of volatility in the market.

Japanese Prime Minister Shigeru Ishiba had a telephonic conversation with Trump on Monday post which US Treasury Secretary Scott Bessent said that the US was going to hold negotiations with the country to implement Trump’s vision for “Golden Age of Global Trade”.

Singapore’s Prime Minister Lawrence Wong on Tuesday said that the 10% tariff imposed by the US President Donald Trump does not appear to be up for negotiation. He also confirmed that Singapore would not impose retaliatory tariffs in response.

Asian markets saw some gains on Tuesday. Japan’s Nikkei 225 jumped more than 6% after falling nearly 8% the day before. In Taiwan, the Taiex fell 4.4%, mainly due to losses at Taiwan Semiconductor Manufacturing Corp. (TSMC), the world’s largest chip maker, reported Associated Press. TSMC’s shares fell 4% on Tuesday and have dropped 13.5% since President Trump announced his new tariffs on April 2. Most other markets in the region rebounded after a volatile day on Wall Street, where stocks plummeted following Trump’s threat to raise tariffs further.

Vietnam has agreed to buy more American products, including defense and security items, according to Prime Minister Pham Minh Chinh in a statement released on Monday, a Reuters report said. Chinh also said that the country would seek faster deliveries of commercial planes that the Vietnamese airlines had ordered from the US. Vietnam, a key manufacturing hub for clothing and footwear brands like Adidas and Nike, is trying to delay the 46% tariffs imposed by President Trump.

Several countries in Southeast Asia and South Asia, including Laos, Vietnam, Myanmar, and Sri Lanka, have been hit with tariffs over 40%, which could severely harm their economies that rely heavily on exports.