Afp Business Asia

India’s gems and jewellery industry is breathing a momentary sigh of relief after US President Donald Trump paused harsh tariffs that threatened to hit lucrative exports and tens of thousands of jobs.At manufacturing and processing hubs across India, exporters and buyers worried over how they would absorb Trump’s gruelling 26 percent tariff on a multi-billion dollar industry.Business related to US exports — everything from silver bracelets to diamonds — were on the verge of a near-standstill in a vital export zone in India’s financial capital Mumbai, industry executives told AFP.But Trump’s 90-day-pause offers a “much-needed breather” to exporters, said Kirit Bhansali, chairman of India’s Gem and Jewellery Export Promotion Council.”This window will help us realign and strengthen our position in the market,” Bhansali said. The pause, he said, would allow the sector to “stabilise operations and strategise for the months ahead”.India shipped about $10 billion in gems and jewellery products to the United States in the 2024 fiscal year, accounting for roughly 13 percent of its total exports to Washington.The industry, which has until now had to deal with far lower tariffs — ranging between zero to 6-7 percent, depending on the item — helps sustain the livelihoods of over four million people.They include artisans in the gem processing hub of Surat, where 90 percent of the world’s diamonds are cut and polished, as well as traders in Mumbai.India’s 26 percent duty was lower than rates levied on rivals such as China, but exporters feared higher jewellery prices would lead to Americans spending less when tariff costs were passed onto customers.- ‘Gripped with uncertainty’ -Adil Kotwal of Creations Jewellery reckons that, if a 26 percent tariff went through, higher inflation and weaker purchasing power could make the market shrink by 25 to 30 percent this year until prices stabilise.”An average American has a budget, he doesn’t have an open-ended wallet,” Kotwal said. “Young people getting married… they have in their head, okay: ‘I’ll have to spend about $6,000, $7,000, I’ll buy a nice ring for the engagement’,” he said.”Now, his budget is going to go up to $10,000, and he’ll have to figure out what to do.”Kotwal, who also heads a jewellery manufacturing industry group in a key Mumbai export zone said before the tariffs were paused that the taxes would make people reassess.”Either he scales down the size of the centre stone, or he goes for buying a lab-grown (stone),” he said. “Or he postpones engagement for a couple of months.”India and the United States are negotiating the first tranche of a trade deal and exporters hope Prime Minister Narendra Modi will be able to shield them from the worst.”The industry as a whole has been gripped with uncertainty over the last few weeks, so that’s lifted for now,” Ajesh Mehta from D. Navinchandra Exports told AFP.”We hope that this 90-day period will also allow the government to negotiate the trade deal and resolve the issues.”However, the industry hoped that trade would remain stable.”We’re still in wait-and-watch mode at this point,” Mehta said. “The industry is currently in a slack period right now, as it is in between major holidays. But purchases from American buyers should continue — for now.”Most jewellers say the sector could live with a lower duty even if it does not go back to a pre-Trump tariff era.”If we conclude that there is going to be a 10 percent duty… that’s where everybody will be able to live comfortably, without disruptions,” said Kotwal.While Trump’s pause has brought relief, India’s exporters are keenly aware they could be in the same position in July. “We should continue to see purchases by American customers and buyers in this 90-day period as the tariff differential isn’t so big right now,” said K. Srinivasan of Emerald Jewel Industry India.”That said, on the 90th day, we may see a drop and purchases stop again if the issue doesn’t get resolved.”

The dollar tumbled and gold hit a fresh record high on Friday, while stocks diverged as hiked Chinese tariffs on the United States deepened a trade between the world’s two largest economies.After blockbuster rallies for equities Thursday in response to a 90-day pause in the tariffs unveiled by US President Donald Trump, with the exception of China, stock markets traded mixed at the end of a highly volatile week.”The main driver of the renewed market pressure was an increased focus on the US-China escalation,” said Jim Reid, managing director at Deutsche Bank.China retaliated on Friday against massive US tariffs with its own 125-percent duties on goods from the United States, but said it would “ignore” future increases by Washington. That left European stocks struggling for direction in early afternoon deals, with Frankfurt falling 0.5 percent and Paris up 0.1 percent.London rose nearly one percent after data showed that the UK economy grew far more than expected in February. Oil prices rebounded only by a small amount after huge falls on Thursday.”Neither the US nor China are showing signs of backing down, with President Trump expressing confidence in his tariff plans,” Reid added.The dollar plunged to the lowest level against the euro in more than three years and slid against other main rivals as investors fled what is typically considered a key safe-haven currency.US bonds were also under pressure amid speculation that China was offloading some of its vast holdings in retaliation for Trump’s measures.With treasuries being sold off, sending their yields higher and making US debt more expensive, there is a fear of a bigger exodus from American assets down the line.The weaker dollar and the rush for safety sent gold to a fresh record high above $3,220 an ounce.”There remains considerable uncertainty around the impact of tariffs on economies and company earnings, and that could keep markets volatile for some time,” noted Russ Mould, investment director at AJ Bell.In equities trading, the Tokyo stock market shed three percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore, Wellington and Bangkok were also in the red. However, Hong Kong and Shanghai rose as traders focused on possible Chinese stimulus measures. Beijing said earlier on Friday it would implement a moderately loose monetary policy in a bid to reassure investors.There were gains in Taipei and Ho Chi Minh City stocks as the leaders of Taiwan and Vietnam said they would hold talks with Trump.The generally downbeat mood came after hefty losses on Wall Street, where the S&P 500 lost 3.5 percent, the Dow 2.5 percent and the Nasdaq 4.3 percent.Trump also warned that the huge tariffs delayed on Wednesday would be reintroduced if no agreements had been made between Washington and other countries.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.- Key figures around 1050 GMT -London – FTSE 100: UP 0.9 percent at 7,980.95 pointsParis – CAC 40: UP 0.1 percent at 7,131.52Frankfurt – DAX: DOWN 0.5 percent at 20,448.17 Tokyo – Nikkei 225: DOWN 3.0 percent at 33,585.58 (close)Hong Kong – Hang Seng Index: UP 1.1 percent at 20,914.69 (close)Shanghai – Composite: UP 0.5 percent at 3,238.23 (close)New York – Dow: DOWN 2.5 percent at 39,593.66 (close)Dollar/yen: DOWN at 143.00 yen from 144.79 yen on ThursdayEuro/dollar: UP at $1.1336 from $1.1183Pound/dollar: UP at $1.3065 from $1.2954Euro/pound: UP at 86.76 pence from 86.33 penceBrent North Sea Crude: UP 0.4 percent at $63.58 per barrelWest Texas Intermediate: UP 0.5 percent at $60.36 per barrel

China said Friday it would raise its tariffs on US goods to 125 percent in a further escalation of a trade war that threatens to bring exports to a halt between the world’s two biggest economies.Beijing’s retaliation sparked fresh market volatility, with European stocks seesawing following the announcement while Tokyo and Seoul closed in the red.In a sign of investors’ worries about the health of the US economy under President Trump’s erratic stewardship, the dollar fell to a three-year low against the euro and by 1.3 percent against the yen.In Beijing, China’s State Council Tariff Commission said new tariffs of 125 percent on US goods would take effect Saturday, almost matching the staggering 145 percent level imposed on Chinese goods coming into America.A Commerce Ministry spokesperson said the United States bore “full responsibility for this”, deriding Trump’s tariffs as a “numbers game” that “will become a joke”.The Chinese finance ministry said tariffs would not go any higher because “there is no possibility of market acceptance for US goods exported to China” — an acknowledgement that almost no imports are possible at the new level.Beijing also said it would file a lawsuit with the World Trade Organization over the latest round of levies announced by Trump.Chinese President Xi Jinping condemned “unilateral bullying”.While the superpowers clash, the EU said its trade chief Maros Sefcovic would hold talks with US counterparts in Washington on Monday to resolve their own tariffs spat.Sefcovic is travelling “in good faith to try and find solutions that can benefit us all,” EU trade spokesperson Olof Gill said.- ‘Beautiful thing’ -Trump sent global financial markets into a tailspin by announcing historic tariffs on America’s trading partners on April 2, including a 10-percent baseline for all goods coming into the United States.After days of plunging markets, on Wednesday he froze the higher tariff rates of 20 percent or more imposed on allies such as the European Union or Japan, but kept an additional rate of 34 percent on China.Beijing has since retaliated, leading to tit-for-tat increases over the past few days that culminated in Friday’s latest move. Trump acknowledged “a transition cost and transition problems” on Thursday, while insisting “in the end it’s going to be a beautiful thing.” Speaking to reporters, he said he had respect for Xi and was hoping for a deal.”He’s been a friend of mine for a long period of time. I think that we’ll end up working out something that’s very good for both countries,” he said.Economists warn that the disruption in trade between the tightly integrated US and Chinese economies threatens businesses, will increase prices for consumers, and could cause a global recession.Trump described the European Union as “very smart” to refrain from retaliatory levies. But the 27-nation bloc’s chief Ursula von der Leyen told the Financial Times on Friday that it remained armed with a “wide range of countermeasures” if negotiations with Trump hit the skids.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.- European response -During talks with Spain’s Prime Minister Pedro Sanchez on Friday, state media quoted Xi as saying Friday that China and the EU should team up on trade.”China and Europe should fulfil their international responsibilities… and jointly resist unilateral bullying practices,” Xi said.This, he stressed, would not only “safeguard their own legitimate rights and interests, but also… safeguard international fairness and justice.”Top EU officials are due to hold their next summit in July.After new falls on Wall Street on Thursday, Asian markets were under pressure again on Friday.Tokyo sank three percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore and others also sagged. European markets opened higher only to fall after China’s retaliation, but they pared down losses later.Gold, a haven in times of uncertainty, hit a new record above $3,200 while investors spooked by Trump’s policies dumped normally rock-solid US Treasuries.”The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes at SPI Asset Management.”Bottom line: the world’s two largest economies are in a full-blown trade war — and there are no winners.”But US Commerce Secretary Howard Lutnick boasted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”burs-adp/lth

China said Friday it would raise tariffs on US goods to 125 percent but would ignore further levies by President Donald Trump because it no longer makes economic sense for importers to buy from America.After a week of market mayhem as the world’s two largest economies took turns to put up trade barriers, Beijing dismissed Trump’s mounting brinkmanship as a “joke” and a “numbers game”.China accused Trump of unleashing turbulence in the market with the sweeping tariffs that has hit the world, and said the United States “should bear full responsibility” for the chaos.Trump has deployed sweeping tariffs, including painfully higher levies for dozens of major economies, as a stick to force manufacturers to base themselves in the United States and for countries to lower barriers to US goods.But following market turmoil this week, he blinked first in his push to remodel the post-war system of global commerce and froze many tariffs for 90 days, although he raised them for China to a staggering total of 145 percent.Beijing’s latest round of retaliation brings its levies to 125 percent, effective Saturday.But the Chinese finance ministry said further action by the US will be ignored because “at the current tariff level, there is no possibility of market acceptance for US goods exported to China”.”The United States’ imposition of round upon round of abnormally high tariffs on China has become a numbers game with no practical significance in economics,” Beijing’s commerce ministry said.”If the US continues to play the tariff numbers game, China will ignore it,” a spokesperson said.Beijing also said it would file a lawsuit with the World Trade Organization over the latest round of levies.- ‘Beautiful thing’ -Trump has acknowledged “a transition cost and transition problems” arising from his tariff strategy, but he has dismissed global market turmoil. “In the end it’s going to be a beautiful thing,” he said.He described the European Union as “very smart” to refrain from retaliatory levies. “(The EU) were ready to announce retaliation. And then they heard about what we did with respect to China’,” Trump said.But the 27-nation bloc’s chief Ursula von der Leyen told the Financial Times that it remained armed with a “wide range of countermeasures” if negotiations with Trump hit the skids.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.French President Emmanuel Macron also urged the EU to keep preparing action to counter the tariffs, which are only paused but not scrapped. “With the European Commission, we must show ourselves as strong: Europe must continue to work on all the necessary counter-measures,” he said on X.At talks with Spain’s Prime Minister Pedro Sanchez on Friday, state media quoted Xi as saying that China and the EU should simply team up on the issue.”China and Europe should fulfil their international responsibilities… and jointly resist unilateral bullying practices,” Xi said.This, he stressed, would not only “safeguard their own legitimate rights and interests, but also… safeguard international fairness and justice.”- ‘No winners’ -After new falls on Wall Street, Asian markets were under pressure again on Friday.Tokyo sank more than four percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore and others also sagged. European markets also retreated on China’s latest salvo.Oil and the dollar slid on fears of a global slowdown while gold hit a new record above $3,200, as investors spooked by Trump’s erratic policies dumped normally rock-solid US Treasuries.”The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes at SPI Asset Management.”Bottom line: the world’s two largest economies are in a full-blown trade war — and there are no winners.”- ‘Golden Age’ -Critics of Trump’s policies say they are causing chaos for companies that rely on complex supply chains, alienating close allies and making goods more expensive for US consumers.But Howard Lutnick, his commerce secretary, posted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”Trump has meanwhile warned that the tariffs could come back after the 90 days.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.As China battles to find allies against Trump’s trade war, Xi will travel next week to Vietnam, Malaysia and Cambodia, where the tariff drama is expected to feature high on the agenda.burs-oho/hmn

The dollar tumbled with most stocks while gold hit a fresh record high as panic gripped markets again on Friday, while China retaliated against Donald Trump’s latest tariff blitz against the world’s number two economy.The US president’s decision to delay crippling duties for 90 days sparked a frenzied scramble for equities that had been beaten down since his “Liberation Day” announcement unleashed a global panic.However, the realisation that nothing had been resolved, coupled with Trump’s decision to double down on his battle with economic superpower China, fuelled another bout of selling of US assets.The dollar tanked against the yen, euro, pound and Swiss franc — investors dropping what is usually considered a key safe haven currency as they look to unload US risk assets.Gold-standard Treasuries were also under pressure amid speculation that China was offloading some of its vast holdings in retaliation for Trump’s measures.The weaker dollar and the rush for safety has also sent bullion to a fresh record high above $3,220.Chinese President Xi Jinping urged the European Union on Friday to join Beijing in resisting “unilateral bullying” by Washington, state media said as he met Spanish Prime Minister Pedro Sanchez.Shortly after, Beijing said it would ramp up levies against the United States to 125 percent, compared with the 145 percent China faces.It added that Washington’s moves defied “basic economic laws and common sense” and “seriously violates international trade rules” but said it would “ignore” future US hikes.After blockbuster rallies on Thursday in response to the 90-day tariff pause, markets across the region were back deep in negative territory at the end of a highly volatile week.Tokyo shed three percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore, Wellington and Bangkok were also in the red. However, Hong Kong and Shanghai rose as traders focused on possible Chinese stimulus measures. Beijing said earlier Friday it would implement a moderately loose monetary policy in a bid to reassure investors.London and Paris rose in the morning but Frankfurt reversed early gains.There were gains in Taipei and Ho Chi Minh City stocks as the leaders of Taiwan and Vietnam said they would hold talks with Trump. Manila, Mumbai and Jakarta also rose.The generally downbeat mood came after losses on Wall Street, where the S&P 500 lost 3.5 percent, the Dow 2.5 percent and the Nasdaq 4.3 percent. That ate into the previous day’s gains of 9.5 percent, 7.9 percent and 12.2 percent respectively.- ‘Ground Zero’ -“There has been a pronounced ‘sell US’ vibe flowing through broad markets and into the classic safe-haven assets, with the dollar losing the safe-haven bid put in over the past week,” said Pepperstone group’s Chris Weston.He added that the moves had “the feel of repatriation flows by foreign entities, with many re-focused on the idea that Trump’s reluctant pause on tariffs was due to increased system risk and migrating capital away from Ground Zero”.With Treasuries being sold off, sending their yields higher and making US debt more expensive, there is a fear of a bigger calamity down the line.Michael Krautzberger at Allianz Global Investors wrote: “A fall in the dollar could be a sign that markets are questioning its status as a global reserve currency.”Looking forward, the big fear is that the response to the additional US tariff threats in recent days, especially on Chinese goods, is the opening salvo from the big foreign holders of US Treasuries in tariff-hit countries, as they sell their US Treasury holdings. “A trade war morphing into a capital war would represent a significant escalation in recent tensions.”Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.While he acknowledged on Thursday there would be “a transition cost and transition problems”, the Republican dismissed the global market turmoil and insisted that “in the end it’s going to be a beautiful thing”.Commerce Secretary Howard Lutnick also posted on social media that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy”.Trump also warned that the huge tariffs delayed on Wednesday would be reintroduced if no agreements had been made between Washington and other countries.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.- Key figures around 0810 GMT -Tokyo – Nikkei 225: DOWN 3.0 percent at 33,585.58 (close)Hong Kong – Hang Seng Index: UP 1.1 percent at 20,914.69 (close)Shanghai – Composite: UP 0.5 percent at 3,238.23 (close)London – FTSE 100: UP 0.2 percent at 7,931.01 Dollar/yen: DOWN at 142.90 yen from 144.79 yen on ThursdayEuro/dollar: UP at $1.1404 from $1.1183Pound/dollar: UP at $1.3081 from $1.2954Euro/pound: UP at 87.10 pence from 86.33 penceWest Texas Intermediate: UP 1.3 percent at $60.86 per barrelBrent North Sea Crude: UP 1.2 percent at $64.10 per barrelNew York – Dow: DOWN 2.5 percent at 39,593.66 (close)

Smartphone buyers were cheered by shopkeepers in Jakarta on Friday after Apple’s latest smartphone went on sale following a monthslong ban in Indonesia.The marketing and sale of iPhone 16 models was prohibited by the government in October over Apple’s failure to meet regulation requiring that 40 percent of smartphone components be made from local parts.But the US tech titan announced last month that its latest smartphone models would hit the shelves, weeks after striking a deal with the Indonesian government to invest in the country.Albert Wongso, 34, told AFP outside the store he was very happy to learn that the iPhone 16s were now available in Indonesia.”I’m very happy to hear from the news because we can buy the iPhone directly from Indonesia,” the IT consultant told AFP Friday, adding that he was looking to buy the iPhone 16 Pro model to replace his iPhone 11.”Because if we buy from the other country… it’s quite hard for example to claim the warranty,” he said.While the ban was in place, the government had allowed iPhone 16 models to be brought into the country, provided they were not being traded commercially.- A win for Apple -Jakarta rejected a $100 million investment proposal from Apple in November, saying it lacked the “fairness” required by the government.The company later agreed to invest $150 million in building two facilities — one in Bandung in West Java province to produce accessories, and another in Batam for AirTags.Industry Minister Agus Gumiwang Kartasasmita said in February that Apple had also committed to building a semiconductor research and development centre in Indonesia, calling it a “first of its kind in Asia”.The iPhone 16’s entry into the Indonesian market marks a win for Apple and signalled the economic importance of the country of 280 million people.”Indonesia is one of the biggest markets for Apple in the Asian region apart from China and so on,” said Nailul Huda, director of digital economy at the think tank, Centre of Economic and Law Studies (CELIOS).The Indonesian government is considering relaxing regulation of the information and communication technology sector ahead of talks with the United States over President Donald Trump’s tariffs.Chief economic minister Airlangga Hartarto is set to lead a delegation to Washington this month in the hope of striking a better deal after Trump announced a 90-day pause on the harshest tariff against US trading partners.Indonesia has also banned the sale of Google Pixel phones for failing to meet the 40 percent local parts requirement.

Jitters about US tariffs hammered stocks and the dollar again Friday as President Donald Trump acknowledged the costs from his rollercoaster trade offensive but predicted a “beautiful” ending.After Trump relented on many tariffs but upped the ante on China, gold rose as discombobulated investors fled to safer assets, while warning lights kept flashing in bond markets and oil fell on recession fears.The US leader said Thursday that the European Union was “very smart” to refrain from retaliatory tariffs even as the bloc’s chief warned it could tax US Big Tech firms.”(The EU) were ready to announce retaliation. And then they heard about what we did with respect to China’,” Trump said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”For investors, the realisation that nothing had been resolved, coupled with Trump’s decision to double down on his battle with economic superpower China, fuelled another bout of selling.On Wall Street, the broad-based S&P 500 finished down 3.5 percent on Thursday after soaring 9.5 percent the day before. The Dow Jones shed 2.5 percent and the Nasdaq 4.3 percent.On Friday in Asia, Tokyo sank more than four percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore and others were also in the red. Oil and the dollar slid on fears of a global slowdown while gold hit a new record above $3,200, as investors spooked by Trump’s erratic policies dumped normally rock-solid US Treasuries.”The sugar high from Trump’s tariff pause is fading fast,” said Stephen Innes at SPI Asset Management.”Bottom line: the world’s two largest economies are in a full-blown trade war — and there are no winners.”- Climbdown -In a spectacular climbdown Wednesday, Trump paused for 90 days tariffs of 20 percent on the EU and even higher levies on other trade partners, including 24 percent on Japan.But levies on China, which has retaliated with tariffs on US goods, were not only maintained but hiked further.The White House on Thursday clarified that tariffs on Chinese imports are now at a staggering total of 145 percent.This was because the latest hike came on top of a 20 percent tariff already imposed. China has retaliated with levies of 84 percent on US imports.- ‘Golden Age’ -Trump says he wants to reorder the world economy by forcing manufacturers to base themselves in the United States and for countries to lower barriers to US goods.Howard Lutnick, his commerce secretary, posted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”The EU welcomed the US president’s partial row-back and proffered its own olive branch, suspending for 90 days tariffs teed up on 20 billion euros’ ($22.4 billion) worth of US goods.But the 27-nation bloc’s chief Ursula von der Leyen told the Financial Times that it remained armed with a “wide range of countermeasures” if negotiations with Trump hit the skids.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.Trump likewise warned that the tariffs could come back after the 90 days.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.Chinese President Xi Jinping will visit Vietnam, Malaysia and Cambodia next week, Beijing’s foreign ministry said Friday.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.burs-stu/tym

Stocks and the dollar tumbled while gold hit a fresh record high as panic gripped markets again Friday after Donald Trump admitted that his global tariff blitz could see “a transition cost”.The US president’s decision to delay crippling duties for 90 days sparked a frenzied scramble for equities that had been beaten down since his “Liberation Day” announcement unleashed a global panic.However, the realisation that nothing had been resolved, coupled with Trump’s decision to double down on his battle with economic superpower China, fuelled another bout of selling.After blockbuster rallies Thursday in response to the 90-day tariff pause, markets across the region were back deep in negative territory at the end of a highly volatile week.Tokyo sank more than four percent — a day after surging more than nine percent — while Sydney, Seoul, Singapore, Taipei, Wellington, Jakarta and Manila were also in the red. Ho Chi Minh City stocks rallied, however, after Vietnam said it would hold talks with the US president.Hong Kong also dropped but Shanghai fluctuated as traders focused on possible Chinese stimulus measures instead of the fact that the country was now facing duties of up to 145 percent. Beijing also said Friday it would implement a moderately loose monetary policy in a bid to reassure investors.The losses followed a similar story on Wall Street, where the S&P 500 lost 3.5 percent, the Dow 2.5 percent and the Nasdaq 4.3 percent. That ate into the previous day’s gains of 9.5 percent, 7.9 percent and 12.2 percent.The selling was not limited to equities. The dollar tanked against the yen, euro, pound and Swiss franc — investors dropping what is usually considered a key safe haven currency as they look to unload US risk assets, including gold standard Treasuries.The weaker dollar and the rush for safety has also sent gold to a fresh record high above $3,200, while fears of a possible global recession have battered oil prices, which extended losses Friday.- ‘Ground Zero’ -“There has been a pronounced ‘sell US’ vibe flowing through broad markets and into the classic safe-haven assets, with the dollar losing the safe-haven bid put in over the past week,” said Pepperstone group’s Chris Weston.He added that the moves had “the feel of repatriation flows by foreign entities, with many re-focused on the idea that Trump’s reluctant pause on tariffs was due to increased system risk and migrating capital away from Ground Zero”. With Treasuries being sold off, sending their yields higher and making US debt more expensive, there is a fear of a bigger calamity down the line.Michael Krautzberger at Allianz Global Investors wrote: “A fall in the dollar could be a sign that markets are questioning its status as a global reserve currency.”Looking forward, the big fear is that the response to the additional US tariff threats in recent days, especially on Chinese goods, is the opening salvo from the big foreign holders of US Treasuries in tariff-hit countries, as they sell their US Treasury holdings. “A trade war morphing into a capital war would represent a significant escalation in recent tensions.”Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.While he acknowledged Thursday there would be “a transition cost and transition problems”, the Republican dismissed the global market turmoil and insisted that “in the end it’s going to be a beautiful thing”.And commerce secretary Howard Lutnick posted on social media that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy”.Trump also warned that the huge tariffs delayed Wednesday would be reintroduced if no agreements had been made between Washington and other countries.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.- Key figures around 0230 GMT -Tokyo – Nikkei 225: DOWN 4.2 percent at 33,148.45 (break)Hong Kong – Hang Seng Index: DOWN 1.1 percent at 20,452.64Shanghai – Composite: DOWN 0.3 percent at 3,214.14Dollar/yen: DOWN at 143.43 yen from 144.79 yen on ThursdayEuro/dollar: UP at $1.1305 from $1.1183Pound/dollar: UP at $1.3021 from $1.2954Euro/pound: UP at 86.83 pence from 86.33 penceWest Texas Intermediate: DOWN 0.7 percent at $59.63 per barrelBrent North Sea Crude: DOWN 0.7 percent at $62.92 per barrelNew York – Dow: DOWN 2.5 percent at 39,593.66 (close)London – FTSE 100: UP 3.0 percent at 7,913.25 (close)

Jitters about US tariffs hammered Asian stocks again early Friday as President Donald Trump acknowledged a “cost” to his surging trade offensive against superpower rival China.The US leader said Thursday that the European Union was “very smart” to back off from imposing retaliatory tariffs because of his tough stance on China even as the bloc’s chief warned it could tax US Big Tech.”(The EU) were ready to announce retaliation. And then they heard about what we did with respect to China… and they said, you know, ‘We’re going to hold back a little bit,'” Trump said.Trump acknowledged “a transition cost and transition problems,” but dismissed global market turmoil. “In the end it’s going to be a beautiful thing.”On Wall Street, the broad-based S&P 500 finished down 3.5 percent on Thursday after soaring 9.5 percent the day before. The Dow Jones shed 2.5 percent and the Nasdaq 4.3 percent.In early trade in Asia Friday, Japan’s Nikkei tumbled over five percent, handing back some of the 9.1-percent gain of the previous day. Seoul and Sydney also fell.Oil and the dollar slid on fears of a global slowdown while gold hit a new record. Fellow safe haven asset the yen also firmed against the greenback.- Climbdown -In a spectacular climbdown Wednesday, Trump paused for 90 days tariffs of 20 percent on the EU and even higher levies on other trade partners, including 24 percent on Japan.But levies on China, which has retaliated with tariffs on US goods, were not only maintained but hiked further.The White House on Thursday clarified that tariffs on Chinese imports are now at a staggering total of 145 percent.This was because the latest hike came on top of a 20 percent tariff already imposed. China has retaliated with levies of 84 percent on US imports.- Relief -Trump says he wants to use tariffs to reorder the world economy by forcing manufacturers to base themselves in the United States and for other countries to decrease barriers to US goods.Howard Lutnick, his commerce secretary, posted on social media Thursday that “the Golden Age is coming. We are committed to protecting our interests, engaging in global negotiations and exploding our economy.”The EU welcomed the US president’s partial row-back and the 27-nation grouping responded with its own olive branch.It suspended for 90 days tariffs on 20 billion euros’ ($22.4 billion) worth of US goods that had been greenlit in retaliation to duties on steel and aluminum.But the bloc’s chief Ursula von der Leyen told the Financial Times that there remained a “wide range of countermeasures” at the bloc’s disposal if negotiations fall short.”An example is you could put a levy on the advertising revenues of digital services” applying across the bloc, she said.This raised the possibility of the use of a new trade weapon called the anti-coercion instrument, according to the FT.Dubbed a “bazooka”, the weapon has never been used but empowers the EU to target services and could limit American companies’ access to public procurement contracts in Europe.Trump likewise warned that the tariffs could come back after the 90 days.”If we can’t make the deal we want to make… then we’d go back to where we were,” he said.Canadian Prime Minister Mark Carney called Trump’s reversal a “welcome reprieve” and said Ottawa would begin negotiations with Washington on a new economic deal after elections on April 28.Vietnam said it had agreed with the United States to start trade talks, while Pakistan is sending a delegation to Washington.In its latest measure, Beijing announced it would reduce the number of Hollywood films imported, but said it remained ready for dialogue.”We hope the US will meet China halfway, and, based on the principles of mutual respect, peaceful coexistence and win-win cooperation, properly resolve differences through dialogue and consultation,” Commerce Ministry spokeswoman He Yongqian said.Trump brushed off Beijing’s clampdown on US films, saying, “I think I’ve heard of worse things.”burs-stu/tym

US President Donald Trump’s delay of steeper tariffs may have won brief respite on Wall Street, but analysts say his actions — which hit China especially hard — already bring the average US effective tariff rate to its highest in over a century.Besides imposing sweeping new 10 percent tariffs on goods from most US trading partners, Trump has also unleashed steep duties on imports of steel, aluminum and autos since his White House return.But on Wednesday, he backed off even higher rates on dozens of economies, including the European Union and Asian manufacturing hub Vietnam, following a sharp sell-off in US government bond markets — though he doubled down on action against China.Many goods from the world’s second biggest economy now face levies of at least 145 percent — the total additional figure Trump has imposed this year.”The newly imposed tariffs now affect $2.4 trillion of US imports, or nearly 75 percent,” said Erica York of the Tax Foundation.”Compared to Trump’s first term, this is a massive escalation, as his first tariffs affected about $380 billion of US imports or 15 percent,” she told AFP.- ‘Highest since 1903′ -Researchers from the Budget Lab at Yale University estimate that “consumers face an overall average effective tariff rate of 27 percent, the highest since 1903.””This is only slightly different from where the effective rate was before the late-April 9 announcement,” they added.Even after accounting for consumption shifts, the average tariff rate will be 18.5 percent, the Budget Lab anticipates. This would be the highest since 1933.Thibault Denamiel, a fellow at the Center for Strategic and International Studies (CSIS), estimates that the US tariff rate was 2.4 percent in December 2024 — a figure which now stands north of 20 percent.”That’s mostly due to the fact that we still have a 125 percent tariff rate on China,” he said, referring to the latest duty Trump imposed on Chinese goods.The 125 percent tariff, which took effect Thursday, coupled with an earlier 20 percent over China’s alleged role in the fentanyl supply chain, putting Trump’s new tariffs targeting China this year to 145 percent.Even a much lower tariff would significantly impact the world’s biggest economy, Denamiel said, noting that China is the United States’ third most important trading partner.Analysts have also pointed out that Trump’s actions marked the biggest tariff increase since the Smoot-Hawley Act of 1930, which deepened the Great Depression.- Shrinking imports -Trump has claimed the United States was “taking in almost $2 billion a day” from tariffs.He has referred to them as a means to raise government revenue, boost the country’s industrial sectors and to pressure other governments on US priorities.But experts warn that prohibitively high duties on China will likely cause US imports from the country to contract.With Chinese tariffs reaching punitive levels, even conservative estimates suggest that China’s share of imports “should shrink dramatically,” said JPMorgan chief US economist Michael Feroli in a recent note.If this were to happen, York of the Tax Foundation added that imports from China would end up generating “very little tariff revenue.””Overall, we estimate the tariffs and announced retaliation will shrink US GDP by 1.0 percent,” she said.With Trump’s latest actions, Feroli expects “the drag from trade policy is likely to be somewhat less than before, and thus the prospect of a recession is a closer call.””However, we still think a contraction in real activity later this year is more likely than not,” he added.