Asian equity markets tracked losses in the S&P 500 and Dow
AFP

Stock markets fell sharply on Wednesday after President Trump's new tariffs on Chinese goods took effect, raising import taxes to 104%. The tariffs now cover nearly all U.S. trading partners and have sparked fears of a global recession.

In response, China announced new tariffs of up to 84% on American goods, set to begin Thursday, Sky News reported. The European Union also approved its own 25% tariffs on U.S. products like corn and glass, which will start next week.

The New York Times said the S&P 500 dropped and came close to entering a bear market. Asian and European stocks also declined. Bond yields rose, and the dollar weakened — a rare mix that signals investor anxiety and fear of a slowdown.

Despite the turmoil, President Trump downplayed concerns, posting on Truth Social: "BE COOL! Everything is going to work out well." He also wrote, ''THIS IS A GREAT TIME TO BUY !!! DJT.''

U.S. Trade Representative Jamieson Greer defended the tariffs, calling the trade deficit a national emergency and insisting the measures were necessary to restore the country's manufacturing strength.