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China vowed on Tuesday to “fight to the end” against fresh tariffs of 50 percent threatened by US President Donald Trump, further aggravating a trade war that has already wiped trillions off global markets.Trump has upended the world economy with sweeping tariffs that have raised the spectre of an international recession, but has ruled out any pause in his aggressive trade policy despite a dramatic market sell-off.Beijing — Washington’s major economic rival but also a key trading partner — responded by announcing its own 34 percent duties on US goods to come into effect on Thursday, deepening a showdown between the world’s two largest economies. The swift retaliation from China sparked a fresh warning from Trump that he would impose additional levies if Beijing refused to stop pushing back against his barrage of tariffs — a move that would drive the overall levies on Chinese goods to 104 percent.”I have great respect for China but they can not do this,” Trump said in the White House.”We are going to have one shot at this… I’ll tell you what, it is an honour to do it.”China swiftly hit back, blasting what it called “blackmailing” by the US and vowing “countermeasures” if Washington imposes tariffs on top of the 34 percent extra that were due to come in force on Wednesday.”If the US insists on going its own way, China will fight it to the end,” a spokesperson for Beijing’s commerce ministry said on Tuesday.In a mounting war of words between Beijing and Washington, China’s foreign ministry also Tuesday condemned “ignorant and impolite” remarks by US Vice President JD Vance in which he complained the US had for too long borrowed money from “Chinese peasants”.The ministry said that “pressure, threats and blackmail are not the right way to deal with China”.Beijing urged Washington to instead “adopt an attitude of equality, respect and mutual benefit” if it wanted to engage in talks.- Market turmoil -A 10 percent “baseline” tariff on US imports from around the world took effect Saturday, and a slew of countries will be hit by higher duties from Wednesday, including the levy of 34 percent for Chinese goods as well as 20 percent for EU products.Trump’s tariffs have roiled global markets in the last days, with trillions of dollars wiped off combined stock market valuations in recent sessions. Hong Kong’s Hang Seng collapsed by 13.2 percent on Monday — its worst day since the Asian financial crisis — before paring back some of those losses on Tuesday.But stocks in Thailand, Indonesia and Vietnam — a key export hub — sank on Tuesday, as they resumed trading after bank holidays.In financial powerhouse Singapore, Prime Minister Lawrence Wong told parliament his government was “very disappointed by the US move”.”These are not actions one does to a friend.”Trump doubled down Monday, saying he was “not looking” at any pause in tariff implementation.He also scrapped any meetings with China over tariffs, but said the United States was ready for talks with any country willing to negotiate.After equities took a hammering in Shanghai, China’s central bank issued a statement before trading resumed Tuesday to underline it was standing behind a sovereign fund as it buys up exchange traded funds to stabilise the market. With investors seeking any relief from the ruinous trade war, stocks in Tokyo leapt Tuesday after Treasury Secretary Scott Bessent suggested in an interview with Fox News that Japan would get “priority” in negotiations over the US tariffs “just because they came forward very quickly”.Scores of countries have sought talks, Bessent said, adding “through good negotiations, all we will do is see levels come down”.- ‘Don’t be Weak!’ -While meeting Israel’s Prime Minister Benjamin Netanyahu, the first leader to lobby Trump in person over the levies, Trump said: “There can be permanent tariffs, and there can also be negotiations, because there are things that we need beyond tariffs.”EU trade ministers were in Luxembourg on Monday to discuss the bloc’s response, with Germany and France having advocated a tax targeting US tech giants.”We must not exclude any option on goods, on services,” said French Trade Minister Laurent Saint-Martin.The 27-nation bloc should “open the European toolbox, which is very comprehensive and can also be extremely aggressive”, he said.While markets continued its wild ride, Trump told Americans: “Don’t be Weak! Don’t be Stupid!”.The 78-year-old Republican believes the tariffs will revive America’s lost manufacturing base by forcing foreign companies to relocate to the United States, rather than making goods abroad.But most economists question that and say his tariffs are arbitrary.JPMorgan Chase CEO Jamie Dimon warned of coming inflation, adding “whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth”.burs-oho/hmn

The Hong Kong firm in charge of two key Panama Canal ports has flouted the terms of its contract, according to a Panamanian audit released Monday, as US and Chinese firms fight for business on the waterway after President Donald Trump threatened to seize it.The audit found “many breaches” of the concession awarded to a subsidiary of logistics giant CK Hutchison to operate the two ports, and concluded that Panama did not receive $1.2 billion it was owed under the contract.The subsidiary, called Panama Ports, benefited from many tax exemptions and also had irregularities in a previous audit that was used to justify an extension of the concession first awarded in 1997, said state comptroller Anel Flores.”This is a very delicate issue,” Flores told journalists, adding that he would file a complaint with prosecutors in the coming days over the unpaid concession fees.The release of the audit results came hours before US Defense Secretary Pete Hegseth arrived in Panama, which has come under strong pressure from Trump to reduce Chinese influence on the US-built canal.The United States has said it is a threat to its national security — and the region as a whole — for a Hong Kong company to operate ports at either end of the canal connecting the Atlantic and Pacific, through which five percent of all global shipping passes.Hegseth will meet Panamanian President Jose Raul Mulino on Tuesday and visit the canal, which opened in 1914.He will also participate in a security conference with Central American officials.Although the waterway has been under Panamanian control since 1999 under international treaties, Trump has threatened to take it back, by force if necessary, arguing that it is effectively controlled by Beijing.- Trump threats -Flores on Monday denied that the announcement of Panama Ports failing to honor the concession contract had anything to do with the Hegseth visit.”This is an autonomous act by Panama,” Flores said.However, some analysts had predicted that this audit would in fact purport to show irregularities, so that Panama could strip the Chinese company of the contract and thus appease the Trump administration.”It comes as a surprise to no one that the audit turns up alleged irregularities, since the idea was to have some kind of legal justification strong enough to cancel the concession,” Euclides Tapia, a professor of international relations, told AFP.The state comptroller’s office is an autonomous body that examines how government money is spent.It began the audit of Panama Ports in late January to determine if it was honoring the concession contract, after Trump threatened to take over the canal.Faced with the US president’s repeated threats, the Central American country in turn has put pressure on CK Hutchison to relinquish its control of the ports.In March, the firm announced an agreement to sell 43 ports in 23 countries — including its two on the interoceanic Panama Canal — to a group led by US giant asset manager BlackRock for $19 billion in cash.A furious Beijing has since announced an antitrust review of the deal, which likely prevented the parties from signing an agreement on April 2 as had been planned.The Panama Ports concession to operate Balboa port on the Pacific side of the canal and Cristobal port on the Atlantic side was renewed for another 25 years in 2021.

Samsung Electronics on Tuesday posted highest ever figures for its first quarter sales forecast and said it predicted a better-than-expected performance for profits, beating market expectations.The firm is the flagship subsidiary of South Korean giant Samsung Group, by far the largest of the family-controlled conglomerates that dominate business in Asia’s fourth-largest economy.The tech giant said in a regulatory filing that its January-March operating profits were expected to rise to 6.6 trillion won ($4.5 billion), down 0.15 percent from a year earlier but up nearly two percent on the previous quarter.This was almost 34 percent higher than the average estimate, according to South Korea’s Yonhap news agency, which cited its own financial data firm.Sales were also seen increasing to 79 trillion won, a near 10 percent jump from a year earlier, marking the highest first-quarter figure on record and the second-highest quarterly revenue ever. The company did not disclose its net income or the detailed earnings of its business divisions. Analysts credit the high figures to record sales of the new Galaxy S25 series phone, which was released in February.The gadget became the fastest ever Galaxy device to reach one million units sold in the shortest time — within 21 days.Shares in Samsung rose more than two percent in Seoul on Tuesday.The revenue and sales growth was due to strong demand for server DRAM — mostly used in data centres — which offset slowing prices for more conventional high-end chips, TrendForce analyst Tom Hsu told AFP.There was “strong purchase momentum” from some US and Chinese cloud service providers, who were investing in their data centres, he said. But “with the US government imposing substantial tariffs, leading to a potential for economic uncertainties”, demand is likely to fall, which could hit future prices, he added.The announcement comes a day after the stock market collapsed on a black Monday in Asia and Europe after China retaliated against steep US tariffs.Experts warn the move could also impact Samsung, as more than half of its smartphones are made in Vietnam, which now faces a 46 percent US duty.”Samsung’s consensus-beating first-quarter operating profit implies its popular product offerings, such as Galaxy smartphones, could weather a tough business environment, when combined with strong cost control capabilities,” Bloomberg Intelligence analysts said.”Yet the pace of profit growth might slow in the second quarter given most of its smartphones are made in Vietnam, which subjects them to US import tariffs. A recovery in memory chip prices is a bright spot.”Samsung said it had no comment when contacted by AFP.

Asian markets battled Tuesday to recover from the previous day’s tariff-fuelled collapse, though Donald Trump’s warning of more measures against China and Beijing’s vow to fight “to the end” raised concerns the trade war could worsen.Equities across the world have been hammered since the US president unveiled sweeping levies against friend and foe, upending trading norms, sparking talk of a global recession and wiping trillions of company valuations.Investors fought to claw back some of those losses as they try to assess the possibility that Washington could temper some of the tariffs. Tokyo traded up more than six percent — recovering much of Monday’s drop — after Japanese Prime Minister Shigeru Ishiba held talks with Trump.However, the US leader’s threat to hit China with an extra 50 percent tariffs — in response to its 34 percent retaliation in kind — ramped up the chances of a catastrophic stand-off between the two economic superpowers.Trump said he would impose the additional levies if Beijing did not heed his warning not to push back against his barrage of tariffs. China fired back that it would “never accept” such a move and called the potential escalation “a mistake on top of a mistake”.”If the US insists on going its own way, China will fight it to the end,” a spokesperson for Beijing’s commerce ministry said on Tuesday.In light of the turmoil gripping markets, Trump told Americans to “be strong, courageous, and patient”.While uncertainty rules, investors in most markets took the opportunity to pick up some beaten-down stocks.In Tokyo, Nippon Steel piled on around 11 percent after Trump launched a review of its proposed takeover of US Steel that was blocked by his predecessor Joe Biden.Hong Kong gained more than two percent but was well off recouping Monday’s loss of more than 13 percent that was the biggest one-day retreat since 1997.  Sydney, Seoul, Wellington and Manila also rose.Shanghai was also up Tuesday after China’s central bank promised to back major state-backed fund Central Huijin Investment in a bid to maintain “the smooth operation of the capital market”. The advance followed a less painful day on Wall Street, where the S&P and Dow fell but pared earlier losses, while the Nasdaq edged up.Oil prices also enjoyed some respite, gaining more than one percent.Others however were not as fortunate. Taipei shed more than four percent to extend the previous day’s record loss of 9.7 percent, while Singapore also suffered further selling.Trading in Jakarta was suspended soon after the open as it plunged more than nine percent as investors returned from an extended holiday, while the bourse in Vietnam — which has been hit with 46 percent tariffs — shed five percent.Analysts warned that things could get worse. “If none of the announced tariffs are reversed by deal-making in the next four weeks or so, the global economy risks entering an ‘oil price shock’ type crisis by mid-year,” said Vincenzo Vedda, global chief investment officer at DWS.Pepperstone’s Chris Weston added: “Most see a low probability that China will fold on its 34 percent tariff countermeasure, so we assume a high risk that Trump will follow through with an additional 50 percent tariff rate.”And JPMorgan Chase CEO Jamie Dimon told shareholders: “Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”He added that “the recent tariffs will likely increase inflation”.The trade war has also put the Federal Reserve in the spotlight as economists say it could send prices surging. Bank officials are now having to decide whether to cut interest rates to support the economy, or keep them elevated to keep a lid on inflation.”Because the tariffs announced thus far are higher than previously expected, we think the risk is now skewed toward more rate cuts by year-end,” said Nuveen chief investment officer Saira Malik. “The debate around further cuts, however, has shifted from inflation to decelerating growth. Notably, our probability-weighted guidance has increased from a total of four Fed cuts through 2025 and 2026 to 6.6 cuts.”- Key figures around 0240 GMT -Tokyo – Nikkei 225: UP 6.1 percent at 33,030.66 (break)Hong Kong – Hang Seng Index: UP 2.2 percent at 20,245.43Shanghai – Composite: UP 0.4 percent at 3,107.75Euro/dollar: UP at $1.0967 from $1.0904 on MondayPound/dollar: UP at $1.2785 from $1.2723Dollar/yen: DOWN at 147.36 yen from 147.83 yen Euro/pound: UP at 85.79 pence from 85.68 penceWest Texas Intermediate: UP 1.4 percent at $61.54 per barrelBrent North Sea Crude: UP 1.1 percent at $64.92 per barrelNew York – Dow: DOWN 0.9 percent at 37,965.60 (close)London – FTSE 100: DOWN 4.4 percent at 7,702.08 (close)

Spanish Prime Minister Pedro Sanchez aims to open new market opportunities during a visit to China and Vietnam this week on the heels of US President Donald Trump’s sweeping tariffs.The trip comes as the European Union rethinks its global trading relationships amid turmoil caused by the US import duties announced last week that have sent world markets into a tailspin.Sanchez is to arrive in Hanoi on Wednesday for talks with Vietnam’s top leader, To Lam, on the same day Trump’s 20 percent tariffs on EU products come into force.On Thursday, he will travel to Ho Chi Minh City, the Asian manufacturing powerhouse’s commercial capital, to meet with business leaders.The Socialist prime minister then heads to China for his third visit in just over two years, where he is scheduled to meet President Xi Jinping and Chinese investors on Friday.China and Vietnam currently sell much more to Spain than they buy.Trump last week announced he would hit China with an additional 34 percent tariff on top of a 20 percent levy imposed this year. On Monday, he threatened additional tariffs of 50 percent from Wednesday if China did not withdraw its retaliatory measures.Vietnam, where Sanchez will make the first official visit by a Spanish prime minister, is to be hit with a thumping 46 percent tariff.- ‘A mistake’ -Sanchez broke with the rest of the EU on his last trip to China in September 2024, urging the bloc to reconsider plans to impose high tariffs on Chinese electric cars and calling for a “fair trade order”.The EU argued that the tariffs were necessary to protect European producers from unfair competition from state-backed Chinese firms.China reacted by launching a probe into imports of EU pork products. Spain is the bloc’s biggest exporter of pork products to China.Sanchez “has tried to present himself as a bridge between Brussels and China and to be one of the voices calling for pragmatism” that puts the economy first, said Ines Arco, an Asia specialist at the Barcelona Centre for International Affairs, a think tank.Spain’s conservative opposition and media have however accused Sanchez of acting on his own and without coordination with Brussels.”It’s a mistake to want to switch from the United States to China overnight,” said Alberto Nunez Feijoo, leader of Spain’s main opposition conservative Popular Party.- ‘Level playing field’ -Brussels, however, has recently signalled that it wants smoother ties with Beijing.After Trump’s return to the White House in January, EU chief Ursula von der Leyen called for “constructive engagement with China”. And the bloc’s trade commissioner, Maros Sefcovic, recently visited China to “promote a more balanced and cooperative trade relationship”.The “clear objective” of Sanchez’s trip is to increase Spain’s exports to China, given the huge trade imbalance that exists, said Miguel Otero, a senior analyst at the Elcano Royal Institute think tank in Madrid.Spain buys some 45 billion euros ($49.1 billion) of goods from China per year, its fourth-largest trading partner, but sells it just some 7.4 billion euros.Sanchez will also seek to attract more green tech investment after Chinese carmaker Chery announced last year it would open its first European electric car factory in Barcelona.Another major Chinese carmaker, BYD, is mulling a new investment in Europe after opening an electric vehicle plant in Hungary, and Spain could be a candidate, said Arco.Spanish Economy Minister Carlos Cuerpo said Monday that Madrid wants to reach “negotiated agreements” with China “to open up our markets, but always with a degree of protection… our companies, our industries should play on a level playing field”.

Nippon Steel shares soared Tuesday after US President Donald Trump launched a review of the company’s proposed takeover of US Steel that was blocked by his predecessor Joe Biden.Trump said Monday he had directed a government panel, the Committee on Foreign Investment in the United States (CFIUS), to conduct a review of the acquisition.This will “assist me in determining whether further action in this matter may be appropriate”, the president said in a White House memo to his Cabinet.US Steel shares closed up 16 percent Monday, and Nippon Steel gained as much as 11 percent in Tokyo on Tuesday.CFIUS, tasked with analysing the national security implications of foreign takeover of US companies, has 45 days to submit its recommendations to Trump.US Steel and Nippon Steel announced the proposed $14.9 billion merger in December 2023. It was originally meant to close by the end of 2024’s third financial quarter. However, months of scrutiny by US antitrust authorities and CFIUS — which failed to reach a consensus for its recommendation — forced then-president Biden to make a decision on the deal himself.Biden had criticised the deal for months, while holding off on a move that could hurt ties with Tokyo.But he blocked it in his last weeks in office on national security grounds.The two firms then filed a lawsuit against the Biden administration’s “illegal interference” in the transaction.The review Trump ordered on Monday involves “identifying potential national security risks associated with the proposed transaction and providing adequate opportunity to the parties to respond to such concerns”, his memo said.- ‘Urgent threat’ -US Steel said in a statement that Trump’s latest move “validates our Board’s bold decision to challenge President Biden’s unlawful order”.”Today’s decision by President Trump is pivotal as we work to deliver on new and historic levels of investment in American steelmaking,” it said.Nippon Steel said it was pleased Trump had ordered the review, saying the deal would allow US Steel to remain “a proud American company with products that are mined, melted and made in the United States by American workers”.”We look forward to a timely resolution so that we can begin making our planned investments that will position US Steel to be a leading global steel producer,” Nippon Steel said.But David McCall, president of the United Steelworkers union, criticised Trump’s move.”Regardless of how much scrutiny the proposed USS-Nippon deal receives, it does not alter the urgent threat it poses to our national and economic security, the long-term future of the steel industry or our members’ jobs,” he said.And Todd Tucker, director of industrial policy and trade at the Roosevelt Institute, said unions were concerned that the two companies would not invest enough to ensure the long-term sustainability of the US steel industry.Trump said during his 2024 campaign he wanted US Steel ownership to remain in the United States.In February, after meeting Japan’s prime minister, Trump said Nippon Steel would make a major investment in US Steel, but no longer attempt to take over the troubled company.burs-kaf/dhc

Troubled Australian casino operator Star Entertainment says it has been thrown an 11th hour multi-million dollar lifeline by US-based casino giant Bally’s Corporation.Star’s business — including casinos, bars, restaurants and hotels at resorts in Sydney, Brisbane and the Gold Coast — has been hovering close to entering administration for months.Bally’s has agreed to inject Aus$300 million (US$187 million) for a 56.7-percent stake in Star, the two firms said in separate statements late Monday.The US group is to make an initial payment of Aus$100 million on Wednesday, with the rest due after the approval of shareholders and regulators.”This transaction provides Bally’s the opportunity to infuse The Star with what it needs to regain its  position as Australia’s preeminent gaming destination,” Bally’s chairman Soo Kim said.Star said it was also talking to its biggest shareholder, Investment Holding, about joining the deal with an Aus$100 million injection.If that deal went ahead, Bally’s participation would drop to Aus$200 million.Shares in Star, which employs more than 8,000 people, have been suspended from trading since March 3 after it failed to post half-year financial results citing liquidity woes.The casino said in a statement late Monday it intended to “unanimously recommend” the deal to shareholders in the absence of a better offer.Bally’s manages 19 casinos across the United States, a golf course in New York and a horse racing track in Colorado.Star Entertainment last traded at Aus$0.11 a share with a market capitalisation of Aus$316 million — a far cry from its Aus$5 billion-plus value of seven years ago.Its finances were squeezed by the cost of developing its Brisbane resort, the threat of an anti-money laundering fine, and stricter regulation in the industry, according to the Australian Financial Review.The company has previously been accused of not adequately policing criminal infiltration and doing little to vet the sources of money coming into the business.

US President Donald Trump on Monday threatened fresh tariffs of 50 percent on China and ruled out any pause in his aggressive new global trade policy, despite a dramatic market sell-off.Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.As the trade war escalates, Beijing — Washington’s major economic rival — unveiled its own 34 percent duties on US goods to come into effect on Thursday.The US president chastised China for ignoring his warning that targeted countries should not to retaliate.He said that if Beijing did not immediately back down the United States would impose additional 50 percent tariffs on China from Friday.”I have great respect for China but they can not do this,” Trump said in the White House. “We are going to have one shot at this… I’ll tell you what, it is an honor to do it.”With the incoming 34 percent rate and new 50 percent threat, the total extra tariffs on China this year could rise to 104 percent, the White House told AFP.- China responds -Beijing hit back, saying in a statement from its US embassy that “pressuring or threatening China is not a right way to engage.”Stock markets and oil prices collapsed further, as trading floors across the world endured waves of selling after last week’s sharp losses.Wall Street stocks finished lower following a volatile session, with both the Dow and S&P 500 ending down.But Hong Kong collapsed by 13.2 percent Monday, its worst day in nearly three decades.Trillions of dollars have been wiped off combined stock market valuations in recent sessions. Tokyo closed down by almost eight percent. Frankfurt fell as much as 10 percent in early trading before paring back losses.Trump doubled down again on Monday, saying he was “not looking” at any pause in tariff implementation.He also scrapped any meetings with China over tariffs, but said the United States was ready for talks with any country willing to negotiate.”There can be permanent tariffs, and there can also be negotiations, because there are things that we need beyond tariffs,” Trump said while meeting Israeli Prime Minister Benjamin Netanyahu, the first leader to lobby him in person over the levies.A 10 percent “baseline” tariff on US imports from around the world took effect Saturday, and a slew of countries will be hit by higher duties from Wednesday, including the levy of 34 percent for Chinese goods as well as 20 percent for EU products.Scores of countries have sought talks, Treasury Secretary Scott Bessent told Fox News, adding “through good negotiations, all we will do is see levels come down.”EU trade ministers were in Luxembourg on Monday to discuss the bloc’s response, with Germany and France having advocated a tax targeting US tech giants.”We must not exclude any option on goods, on services,” said French Trade Minister Laurent Saint-Martin.The 27-nation bloc should “open the European toolbox, which is very comprehensive and can also be extremely aggressive,” he said.But signs of divergence emerged from Ireland, whose low corporate tax rate has attracted US tech and pharmaceutical companies.Targeting services “would be an extraordinary escalation,” said Irish Trade Minister Simon Harris.- Inflation? Recession? -Bitcoin tumbled, while the dollar rebounded after sharp losses last week.”Don’t be Weak! Don’t be Stupid!” Trump urged Americans minutes before Wall Street opened. “Be Strong, Courageous, and Patient, and GREATNESS will be the result!”The 78-year-old Republican believes that the tariffs will revive America’s lost manufacturing base by forcing foreign companies to relocate to the United States, rather than making goods abroad.But most economists question his theory and say his tariffs are arbitrary.JPMorgan Chase CEO Jamie Dimon warned of coming inflation, adding “whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth.”US Senator Ted Cruz — a staunch Trump loyalist — expressed widespread concern among Republican lawmakers over the impact on ordinary voters.He warned of a jobs crunch and rising prices, saying a recession would mean a “bloodbath” for Republicans in mid-term elections next year.

Stock markets and oil prices slumped further on a black Monday for markets as US President Donald Trump stood firm over his tariffs despite recession fears.Trading floors across the globe experienced waves of further selling after last week’s sharp losses, with Trump telling Americans to “be strong, courageous, and patient,” minutes before the New York stock market opened to drops of over three percent.Both the Dow and S&P 500 finished volatile sessions lower while the Nasdaq mustered a modest gain.Much worse hit was Hong Kong, which collapsed by 13.2 percent in its worst day in nearly three decades.Trillions of dollars have been wiped off combined stock market valuations in recent sessions. Taipei stocks suffered their worst fall on record Monday, tanking 9.7 percent. Tokyo closed down by almost eight percent. Frankfurt fell as much as 10 percent in early trading before paring back losses to end the day down 4.1 percent.”The carnage in global equity markets has continued,” said Thomas Mathews, Asia Pacific head of markets at Capital Economics.A 10 percent “baseline” tariff on imports from around the world took effect Saturday.A slew of countries will be hit by higher duties from Wednesday, with levies of 34 percent for Chinese goods and 20 percent for EU products.Beijing last week announced its own 34 percent tariff on US goods, which will come into effect on Thursday.Trump on Monday threatened to slap an additional 50 percent tariff on China if Beijing did not withdraw its retaliation plans — heightening the prospect of another round of tit-for-tat hikes.Major US indices briefly surged into positive territory following a report that White House economic advisor Kevin Hassett said Trump was considering a 90-day tariff pause.But markets retreated when the White House denied the story posting Hassett’s interview on Fox News that had been misquoted.- Bitter medicine -Hopes that the US president would rethink his policy in light of the turmoil were dashed on Sunday when he said he would not make a deal with other countries unless trade deficits were solved.”Sometimes you have to take medicine to fix something,” he said of the market pain that has wiped trillions of dollars off company valuations, which impacts the retirement savings of many Americans.In a letter to shareholders, JPMorgan Chase CEO Jamie Dimon warned that Trump’s broad tariffs “will likely increase inflation.””Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” Dimon said, concluding that “the recent tariffs will likely increase inflation.”With the start of the first quarter earnings reports, the market is likely to get a flurry of updated outlooks by companies that could further dampen sentiment.Concerns about future energy demand saw oil prices slide more than two percent, having dropped some seven percent Friday. Both main contracts hit their lowest levels since 2021, but then cut losses.- Key figures around 2050 GMT -New York – Dow: DOWN 0.9 percent at 37,965.60 (close)New York – S&P 500: DOWN 0.2 percent at 5,062.25 (close)New York – Nasdaq Composite: UP 0.1 percent at 15,603.26 (close)London – FTSE 100: DOWN 4.4 percent at 7,702.08 (close)Paris – CAC 40: DOWN 4.8 percent at 6,927.12 (close)Frankfurt – DAX: DOWN 4.1 percent at 19,789.02 (close)Tokyo – Nikkei 225: DOWN 7.8 percent at 31,136.58 (close)Hong Kong – Hang Seng Index: DOWN 13.2 percent at 19,828.30 (close)Shanghai – Composite: DOWN 7.3 percent at 3,096.58 (close)West Texas Intermediate: DOWN 2.1 percent at $60.70 per barrelBrent North Sea Crude: DOWN 2.1 percent at $64.21 per barrelEuro/dollar: DOWN at $1.0904 from $1.0956 on FridayPound/dollar: DOWN at $1.2723 from $1.2887Dollar/yen: UP at 147.83 yen from 146.93 yen Euro/pound: UP at 85.68 pence from 85.01 penceburs-jmb/bjt

US President Donald Trump on Monday threatened new tariffs of 50 percent on China, ratcheting up a trade war even as a dramatic selloff in global markets gathered pace.Trump upended the world economy last week with sweeping tariffs that have raised fears of an international recession and triggered criticism even from within his own Republican Party.In response to Trump’s tariffs, Beijing — Washington’s major economic rival — unveiled its own 34 percent duties on US goods to come into effect on Thursday.The US president on Monday chastised China for not heeding “my warning for abusing countries not to retaliate.”He said on social media that if China did not immediately back down “the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th.”With the incoming 34 percent rate and new 50 percent threat, the total additional tariffs this year could hit 104 percent, the White House told AFP.Stock markets and oil prices collapsed further, as trading floors across the world were overcome by waves of selling after last week’s sharp losses.Wall Street was wracked by volatility, bouncing into positive territory on hopes of a 90-day pause in tariffs, only to sink lower when those were dashed by the White House.Hong Kong collapsed by 13.2 percent Monday, its worst day in nearly three decades.Trillions of dollars have been wiped off combined stock market valuations in recent sessions. Tokyo closed down by almost eight percent. Frankfurt fell as much as 10 percent in early trading before paring back losses.- ‘Don’t be weak’ -“Don’t be Weak! Don’t be Stupid!” Trump urged Americans minutes before Wall Street opened.”Be Strong, Courageous, and Patient, and GREATNESS will be the result!”Trump scrapped any meetings with China over its retaliation, but said the United States was ready to open talks with all countries willing to negotiate.A 10 percent “baseline” tariff on US imports from around the world took effect Saturday but a slew of countries will be hit by higher duties from Wednesday, with levies of 34 percent for Chinese goods and 20 percent for EU products.Chinese vice commerce minister Ling Ji said its tit-for-tat duties “are aimed at bringing the United States back onto the right track of the multilateral trade system.””The root cause of the tariff issue lies in the United States,” Ling told representatives of US companies on Sunday.EU trade ministers gathered in Luxembourg on Monday to discuss the bloc’s response, with Germany and France having advocated a tax targeting US tech giants.”We must not exclude any option on goods, on services,” said French Trade Minister Laurent Saint-Martin.The 27-nation bloc should “open the European toolbox, which is very comprehensive and can also be extremely aggressive,” he said.But signs of divergence emerged from Ireland, whose low corporate tax rate has attracted US tech and pharmaceutical companies.Targeting services “would be an extraordinary escalation,” said Irish Trade Minister Simon Harris.- Inflation? Recession? -Bitcoin tumbled, while the dollar rebounded after sharp losses last week.The 78-year-old Republican believes that the tariffs will revive America’s lost manufacturing base by forcing foreign companies to relocate to US soil, rather than making goods abroad.But most economists question his theory and say his tariff figures on importing countries are arbitrary.JPMorgan Chase CEO Jamie Dimon warned the tariffs “will likely increase inflation,” in a letter to shareholders.”Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he said.”The market’s telling you in plain language: global demand is vanishing, and a global recession is on the cards and coming on fast,” said Stephen Innes at SPI Asset Management.US Senator Ted Cruz — a staunch Trump loyalist — warned of a jobs crunch and rising inflation that would threaten the Republican hold on Congress.Benjamin Netanyahu, prime minister of Israel — hit with 17 percent tariffs, despite being one of Washington’s closest allies — was due on Monday to become the first leader to meet Trump since last week’s announcement.