Trump threatens additional 50 per cent tariffs on China

Good morning and welcome again to FirstFT Asia, the place we’re following the continuing world market rout from Donald Trump’s tariffs. Additionally in in the present day’s e-newsletter:

• Jamie Dimon’s response to tariffs

• The resignation of a high Honda govt

• Can’t-miss meals at Japan’s konbinis

Donald Trump has threatened extra 50 per cent tariffs on China if Beijing doesn’t withdraw its retaliatory levies on Washington. The US president’s newest feedback on his commerce warfare got here on a day of acute volatility on Wall Road.

Trump’s menace: “If China doesn’t withdraw its 34% enhance above their already long run buying and selling abuses by tomorrow, April eighth, 2025, the USA will impose ADDITIONAL Tariffs on China of fifty%, efficient April ninth,” Trump wrote on Fact Social yesterday.

The Trump administration hit China with 34 per cent in extra duties final week, stacked on high of the 20 per cent levies it had already imposed. In response, China elevated levies on US items by a further 34 per cent. 

Hours later the US president mentioned he’s “not trying” at a pause in tariffs to permit for commerce negotiations and that “many international locations” are reaching out to barter with US officers. Treasury secretary Scott Bessent mentioned on X yesterday that he and US commerce consultant Jamieson Greer had been requested by Trump to open the negotiations with Japanese Prime Minister Shigeru Ishiba and his cupboard.

What are analysts saying?: Whereas the “state of affairs is dangerous; it might be worse”, mentioned Cory Combs, affiliate director of Beijing-based consultancy Trivium China. Beijing has “strategically left itself area to proceed ratcheting up retaliation”, holding back some firepower for negotiation because the commerce warfare escalates.

Wild swings on Wall Road: Trump’s menace to sharply enhance duties on China, the world’s largest exporter, got here on a day of extreme volatility in US markets. The blue-chip S&P 500 share index swung in a variety, however closed down solely 0.2 per cent. Apple, which is closely uncovered to China via its provide chains, dropped 3.7 per cent. The tech-heavy Nasdaq Composite ended the day up 0.1 per cent. Follow the latest market moves on our live blog.

• Jamie Dimon weighs in: The JPMorgan Chase chief warned {that a} world commerce warfare dangers tipping the US economy into a recession and driving costs increased.

• Billionaire backlash: Financiers lambasted Trump’s wide-ranging tariffs for being set too excessive and applied too shortly. BlackRock’s Larry Fink mentioned the US economic system was “weakening as we speak”, whereas hedge fund supervisor Invoice Ackman, a vigorous Trump supporter within the 2024 election, criticised among the president’s insurance policies.

• EU retaliation: Brussels will hit the US with 25 per cent tariffs on a variety of products in response to its duties on aluminium and metal, however has exempted bourbon, wine and dairy products.

• Instantaneous Perception: Markets may get so much worse — and shortly, writes Katie Martin. Here’s how.

For extra evaluation on the tariffs, sign up for our Commerce Secrets and techniques e-newsletter for those who’re a premium subscriber, or upgrade your subscription. Right here’s what else we’re retaining tabs on in the present day:

• Financial knowledge: Indonesia and Taiwan report March CPI inflation figures.

• Nato-Japan: Mark Rutte, secretary-general of the navy alliance, begins a two-day go to to Japan.

• Panama: US secretary of defence Pete Hegseth will go to as Washington increases pressure on the Central American nation for alleged Chinese language affect over its well-known canal.

5 extra high tales

1. A high Honda govt has resigned abruptly after an allegation that he had engaged in inappropriate conduct throughout a social gathering. The exit of Honda’s quantity two govt Shinji Aoyama comes as Japan grapples with a collection of different high-profile misconduct scandals involving enterprise leaders. Here’s what we know.

2. A $5.6bn Singaporean start-up will search banking licences within the UK and US, its chief govt has mentioned. Company funds firm Airwallex, whose shoppers embrace automotive racing group McLaren, hopes to expand into lending and compete with global banks.

3. Trump has introduced the US would maintain direct talks with Iran on curbing Tehran’s nuclear programme, in a sign of possible progress in one of many Center East’s most intractable issues. The US president’s feedback got here after talks with Israeli Prime Minister Benjamin Netanyahu which had touched on Iran, in addition to US tariffs on Israel and the warfare in Gaza.

• Center East warfare: Israel has stepped up air strikes on Lebanon and Syria alongside its renewed navy offensive in Gaza, widening assaults and pushing up tensions throughout the area.

4. The ECB is extremely more likely to minimize borrowing prices subsequent week and once more in June, buyers and economists consider, as Trump’s sweeping tariffs risk pushing the bloc into recession. 1 / 4-point minimize in April and one other in June “have actually grow to be a no brainer,” mentioned one analyst, who added that every other choice can be “a catastrophe”.

5. The UK authorities has set out plans to water down guidelines for personal fairness and hedge funds by introducing a lighter regulatory regime for smaller teams to encourage extra funding. The Treasury introduced yesterday that it might raise the scale threshold for which different asset managers are subjected to the primary guidelines for the sector. Read the full story.

The Huge Learn

Healthcare employees and officers say falsehoods and conspiracy theories are exacerbating inequalities and costing lives. Immediately’s Huge Learn explores the lack of belief in medical doctors in an age of misinformation — and a triumphant example from India of what could be achieved when the neighborhood is efficiently enlisted as a accomplice in countering false claims.

We’re additionally studying . . . 

• Trump’s tariffs considered from Japan: Leo Lewis in Tokyo experiences how the influence of Trump’s tariffs dawned on investors in Asia.

• Defending ‘Australianess’ within the Netflix age: Australia’s tv producers are pushing for a regulation to impose local content quotas on streamers, writes Nic Fildes.

• The Trumpanos: The US president’s tariff warfare is revealing the weak point of his mafia boss approach to the world economic system, write Gideon Rachman.

Chart of the day

Trump’s new tariffs of 10 per cent to 49 per cent on clear power expertise from China, south-east Asia and Europe pose a one-two punch for an business already reeling from the US president’s embrace of the fossil gas business.

Take a break from the information . . . 

Japanese comfort shops are one-stop retailers for every little thing from garments to make-up to home items. However it’s the food that makes konbinis such vital destinations, writes Ajesh Patalay.