KEY POINTS

  • This is International Business Times' live coverage of President Donald Trump's groundbreaking tariffs.
  • A news report has revealed that President Donald Trump had acknowledged that his aggressive tariff plan could push the U.S. economy into a recession
  • White House adviser Kevin Hassett stresses that trade talks are "doable" in 90 days.
  • EU pauses countermeasures against the U.S.
  • China's Commerce Ministry urged the U.S. to meet the country "halfway, saying the "door to dialogue is open."
  • European markets witnessed a historic surge on Thursday, with Euro Stoxx 50 index soaring by 8.2%.
  • China's retaliatory tariff takes effect from Thursday.
  • Oil prices fell Thursday on fears the trade war could slow the economy and reduce energy demand.
  • White House clarifies 145% Tariffs on China, adding 125% to existing 20% duty
  • Dow Drops 2,000 points as trade war fears resurface after White House tariff clarification
  • Trump defended tariffs, acknowledging costs but claiming they make the U.S. stronger.
Live Updates
US President Donald Trump speaks at the National Republican Congressional Committee's (NRCC) "President's Dinner" at the National Building Museum in Washington, DC on April 8, 2025.
AFP

Stocks are surging on Wednesday after President Donald Trump said he would implement a 90-day pause on tariffs to countries that have not retaliated against the levies announced by his administration. At the same time, he further hiked tariffs on China to 125%.

The S&P 500 climbed over 5% and the tech-heavy Nasdaq 100 did so almost 8% following the announcement, breaking with three days of heavy losses.

In a post on his social media platform, Truth Social, Trump said that "based on the lack of respect that China has shown to the World's Markets, I am hereby raising the Tariff charged to China by the United States of America to 125%, effective immediately."

"At some point, hopefully in the near future, China will realize that the days of ripping off the U.S.A., and other Countries, is no longer sustainable or acceptable," Trump added. Beijing has so far matched most levies imposed by Washington D.C., with the current figure being 84%.

China has not yet reacted to the latest announcement, but its Commerce Ministry said on Tuesday that tariffs were "completely groundless" and a "typical unilateral bullying practice." Moreover, it added that its countermeasures are "aimed at safeguarding its sovereignty, security and development interests, and maintaining the normal international trade order. They are completely legitimate," it added, vowing to "fight to the end."

Chinese leaders are reportedly confident they can come out on top of the tariff standoff, according to a report by The Washington Post on Wednesday.

Separately, Trump announced relief for countries that had not imposed retaliatory measures. "Based on the fact that more than 75 Countries have called Representatives of the United States, including the Departments of Commerce, Treasury, and the USTR, to negotiate a solution to the subjects being discussed relative to Trade, Trade Barriers, Tariffs, Currency Manipulation, and Non Monetary Tariffs, and that these Countries have not, at my strong suggestion, retaliated in any way, shape, or form against the United States, I have authorized a 90 day PAUSE, and a substantially lowered Reciprocal Tariff during this period, of 10%, also effective immediately"

Trump admits his tariff policy is experiencing "Transition problems"

Trump acknowledged that his tariff policies are experiencing "transition problems" but announced in-progress talks with multiple countries to address the issue -- with China the lone exception. Trump also clarified that the latest rate imposed on Chinese imports is 145% -- even higher than his previous threat.

Trump Optimistic About U.S.-China Deal Despite Tariffs

President Trump is hopeful the U.S. and China will reach a deal on tariffs, pointing to his strong relationship with President Xi Jinping. He blamed previous U.S. administrations for allowing China to take advantage of the country.

Trump emphasized his respect for Xi and expressed confidence that the two nations would work out a beneficial agreement. He dismissed China's move to limit American films as a minor retaliation, joking, "I've heard worse things."

Trump Says 'We Think We're In Very Good Shape' Despite Tariff Transition Costs

President Trump defended his tariff policies in a cabinet meeting, acknowledging "transition costs and transition problems" but insisting, "we think we're in very good shape." He also claimed the U.S. is benefiting from billions in tariff revenue daily, strengthening the country's economy.

Trump's comments came as stock markets began to reverse the previous day's rally, highlighting ongoing uncertainty about the effectiveness of the trade policies. He further stated that his protectionist approach is making the U.S. a stronger nation, claiming, "that makes us a very strong country," despite the challenges his policies may bring.

Dow Plunges 2,000 Points After White House Confirms 145% Tariffs On China

The Dow dropped over 2,000 points, or 5%, Thursday, as investors reacted to the White House's confirmation that tariffs on China have risen to 145%. The announcement added to existing fears of a prolonged trade war. The S&P 500 and Nasdaq followed suit, falling 5.9% and 6.9%, respectively.

The U.S. dollar also weakened, dropping 1.85% to its lowest level since October. While March inflation data showed a slowdown, investors are focused on the uncertain impact of higher tariffs on the economy.

White House Clarifies China Tariffs Now At 145%, Not 125%, Adding To Existing 20% Duty

The White House confirmed Thursday that tariffs on Chinese goods have now reached at least 145%, as the 125% "reciprocal" tariff announced Wednesday is added to the existing 20%. The 20% tariff is tied to issues like illegal immigration and fentanyl trafficking from China.

Additionally, tariffs on Chinese goods under $800 will rise to 120%, effective May 2.

Oil Prices Slide Again As Trade War Worries Grow

Oil prices dropped sharply Thursday as fears mount that President Trump's trade war could slow the global economy and cut demand for energy.

U.S. crude fell 4.6% to $59.50 a barrel, nearly erasing Wednesday's gains. If it closes below $59.58, it'll be the lowest level since April 2021, CNN reported.

Hopes tied to Trump's 90-day tariff pause have faded, as the U.S. and China continue raising tariffs on each other.

Meanwhile, OPEC+ is increasing oil output, raising concerns about a growing supply surplus just as demand may be weakening.

Trump Admitted Tariffs Could Lead To Recession, But Wanted To Avoid Depression: Report

President Donald Trump had reportedly acknowledged that his aggressive tariff plan could push the U.S. economy into a recession; however, he went ahead with the plans to avoid a depression.

People familiar with the matter told The Wall Street Journal that the president had privately expressed awareness of the risks involved, but stated he was willing to endure "pain" for the policy.

A depression, characterized by severe recession, high unemployment, and prolonged economic downturn, has been avoided in the U.S. since the Great Depression, due to advancements in fiscal and monetary policy.

Trade Talks 'Doable' In 90 Days, Says White House Adviser

Director of the U.S. National Economic Council, Kevin Hassett, said Thursday that trade negotiations were "doable" within the 90-day timeline.

While speaking to CNBC, Hassett said nearly 20 countries were already making offers.

He, however, added that he did not have "clarity" about talks with China.

"President Trump has a strong relationship with President Xi. They have had conversations in the past that have been very productive. Those conversations haven't begun yet. When they begin is a decision President Trump will decide and I don't have any clarity on whether that is going to be soon or later. But I know the president has made a lot of progress in the past by speaking directly with President Xi and I will be shocked if at some point that doesn't happen," Hassett said.

"We've got few deals we've been working on ahead of pause announcement. A few trade deals really well advanced...We have set up a process for tariff deals can be orderly," he added. "Two trade trade deals almost closed as of last week. There's a big inventory of deals that are right close to the finish line."

Regarding Trump's move to pause tariffs on countries other than China, Hassett stressed that it was a systematic decision, and not related to the bond market.

EU Pauses Countermeasures Against US

The European Union diplomats have paused its initial countermeasures against U.S. tariffs for 90 days after President Trump temporarily reduced the heavy duties.

The European Union's executive chief, Ursula von der Leyen, posted a message on X, saying, the bloc wanted to "give negotiations a chance."

The bloc had planned to impose counter-tariffs on approximately $23 billion (€21 billion) worth of U.S. imports starting next Tuesday in retaliation for Trump's 25% tariffs on steel and aluminum, Reuters reported.

However, the EU is still evaluating its response to U.S. car tariffs and the broader trade levies.

China's Commerce Ministry Says 'Door To Dialogue Is Open'

Beijing has signaled its continued openness to talks with President Trump, while urging that the negotiations must be grounded in "mutual respect."

Commerce Ministry spokesperson He Yongqian stated Thursday, "The door to dialogue is open, but it must be based on mutual respect and conducted in an equal manner," Al Jazeera reported.

She also urged the U.S. to meet Beijing "halfway," while adding the country was ready to "fight to the end."

The Commerce Ministry's comments came a few hours after the country's Foreign Ministry spokesperson, Lin Jian, criticized the U.S. for tariffs that go "against the whole world" and "seriously damage the rules-based multilateral trading system, and seriously impact the stability of the global economic order."

"This is a blatant act that goes against the will of the world and goes against the whole world," he said Thursday during a press conference.

European Markets Witness Historic Surge

Thursday morning saw European stock markets surge, following Trump's 90-day pause on tariffs for countries that haven't retaliated against the U.S.' trade measures. The surprising move by Trumo has triggered a historic rally across European indices.

The Euro Stoxx 50 index, which represents leading blue-chip firms across the eurozone, soared by 8.2%, nearing the 5,000-point mark and recording its most impressive single-day performance since the peak of the COVID-19 market turmoil in March 2020, Euro News reported.

The broader Euro Stoxx 600 also jumped 7.4%, reflecting gains across a wide array of sectors and countries.

National indices of major countries in Europe also posted similar outsized gains. Germany's DAX index rallied 8.5%, while Italy's FTSE MIB rose 8.4%. France's CAC 40 advanced 8.6%, and Spain's Ibex 35 climbed 8.3%.

China's Retaliatory Tariff Takes Effect

China's planned retaliatory tariffs on U.S. goods came into effect Thursday, adding an extra 84% duty on American imports.

The implementation follows a sharp escalation in the trade dispute, with U.S. President Donald Trump announcing Wednesday a new plan to raise tariffs on Chinese products to 125%. At the same time, Washington has paused tariffs on select other countries.

Beijing has yet to respond to this latest round of U.S. measures.

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