<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="410" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg" alt="" class="wp-image-610430" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-820x410.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-300x150.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-160x80.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828-768x384.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130007-1744293710285-gettyimages-2208850679-AA_10042025_2168828.jpeg 884w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dilara Irem Sancar | Anadolu | Getty Images</figcaption></figure>



China last week announced it was done retaliating against U.S. President Donald Trump’s tariffs, saying any further increases by the U.S. would be a “joke,” and Beijing would “ignore” them.



Instead of continuing to focus on tariffing goods, however, China has chosen to resort to other measures, including steps targeting the American services sector.



Trump has jacked up U.S. levies on select goods from China by up to 245% after several rounds of tit-for-tat measures with Beijing in recent weeks. Before calling it a “meaningless numbers game,” China last week imposed additional duties on imports from the U.S. of up to 125%.



While the Trump administration has largely focused on pressing ahead with tariff plans, Beijing has rolled out a series of non-tariff restrictive measures including widening export controls of rare-earth minerals and opening antitrust probes into American companies, such as pharmaceutical giant DuPont and IT major Google.



Before the latest escalation, in February Beijing had put dozens of U.S. businesses on a so-called “unreliable entity” list, which would restrict or ban firms from trading with or investing in China. American firms such as PVH, the parent company of Tommy Hilfiger, and Illumina, a gene-sequencing equipment provider, were among those added to the list.



Its tightening of exports of critical mineral elements will require Chinese companies to secure special licenses for exporting these resources, effectively restricting U.S. access to the key minerals needed for semiconductors, missile-defense systems and solar cells.



In its latest move on Tuesday, Beijing went after Boeing — America’s largest exporter — by ordering Chinese airlines not to take any further deliveries for its jets and requested carriers to halt any purchases of aircraft-related equipment and parts from U.S. companies, according to Bloomberg.



Having deliveries to China cut off will add to the cash-strapped plane maker’s troubles, as it struggles with a lingering quality-control crisis.



In another sign of growing hostilities, Chinese police issued notices for apprehending three people they claimed to have engaged in cyberattacks against China on behalf of the U.S. National Security Agency.



Chinese state media, which published the notice, urged domestic users and companies to avoid using American technology and replace them with domestic alternatives.



“Beijing is clearly signaling to Washington that two can play in this retaliation game and that it has many levers to pull, all creating different levels of pain for U.S. companies,” said Wendy Cutler, vice president at Asia Society Policy Institute.



“With high tariffs and other restrictions in place, the decoupling of the two economies is at full steam,” Cutler said.



<h2 class="wp-block-heading" id="h-targeting-trade-in-services"><a></a>Targeting trade in services</h2>



China is seen by some as seeking to broaden the trade war to encompass services trade — which covers travel, legal, consulting and financial services — where the U.S. has been running a significant surplus with China for years.



Earlier this month, a social media account affiliated with Chinese state media Xinhua News Agency, suggested Beijing could impose curbs on U.S. legal consultancy firms and consider a probe into U.S. companies’ China operations for the huge “monopoly benefits” they have gained from intellectual-property rights.



China’s imports of U.S. services surged more than 10-fold to $55 billion in 2024 over the past two decades, according to Nomura estimates, driving U.S. services trade surplus with China to $32 billion last year.



Last week, China said it would reduce imports of U.S. films and warned its citizens against traveling or studying in the U.S., in a sign of Beijing’s intent to put pressure on the U.S. entertainment, tourism and education sectors.



“These measures target high-visibility sectors — aviation, media, and education — that resonate politically in the U.S.,” said Jing Qian, managing director at Center for China Analysis.



While they might be low on actual dollar impact given the smaller scale of these sectors, “reputational effects — such as fewer Chinese students or more cautious Chinese employees — could ripple through academia and the tech talent ecosystem,” he added.



Nomura estimates $24 billion could be at stake if Beijing significantly step up restrictions on travel to the U.S.

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China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-820x461.png" alt="" class="wp-image-610146" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-820x461.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108071122-1733319291213-gettyimages-2187589196-AFP_36PC93X.png 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Cargo ships and containers at Qingdao port in eastern China’s Shandong province on Dec. 4, 2024. Stringer | Afp | Getty Images</figcaption></figure>



The World Trade Organization (WTO) warned on Wednesday that the outlook for global trade has “deteriorated sharply” in the wake of U.S. President Donald Trump’s tariffs regime.



“The outlook for global trade has deteriorated sharply due to a surge in tariffs and trade policy uncertainty,” the WTO said in its latest “Global Trade Outlook and Statistics” report out Wednesday.



Based on the tariffs currently in place, and including a 90-day suspension of “reciprocal tariffs,” the volume of world merchandise trade is now expected to decline by 0.2% in 2025, before posting a “modest” recovery of 2.5% in 2026.



The decline is anticipated to be particularly steep in North America, where exports are forecasted to drop by 12.6% this year.



The WTO also warned that “severe downside risks exist,” including the application of “reciprocal” tariffs and a broader spillover of policy uncertainty, “which could lead to an even sharper decline of 1.5% in global goods trade,” particularly hurting export-oriented, least-developed countries.



The recent tariff disturbances follow a strong year for world trade in 2024, during which merchandise trade grew 2.9% and commercial services trade expanded by 6.8%, the WTO said.



The new estimate of a 0.2% decline in world trade for 2025 is nearly three percentage points lower than it would have been under a “low tariff” baseline scenario, the WTO added, and marks a significant reversal from the start of the year when the trade body’s economists expected to see continued trade expansion supported by improving macroeconomic conditions.



“Risks to the forecast include the implementation of the currently suspended reciprocal tariffs by the United States, as well as a broader spillover of trade policy uncertainty beyond U.S.-linked trade relationships,” the WTO said.



“If enacted, reciprocal tariffs would reduce world merchandise trade growth by an additional 0.6 percentage points, posing particular risks for least-developed countries (LDCs), while a spreading of trade policy uncertainty (TPU) would shave off a further 0.8 percentage points. Taken together, the reciprocal tariffs and spreading TPU would lead to a 1.5% decline in world merchandise trade volume in 2025.”



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108127151-17438709982025-04-04t234656z_1270263179_rc2xpdazxgbd_rtrmadp_0_usa-trump-tariffs.jpeg?v=1744047527&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., U.S., April 2, 2025. REUTERS/Carlos Barria"/><figcaption class="wp-element-caption">U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025. Carlos Barria | Reuters</figcaption></figure>



Trump stunned trading partners and global markets in early April, when he announced a raft of “reciprocal” tariffs on imports from more than 180 countries. Beijing was hit the hardest of all, with the U.S. duty on Chinese imports now effectively totaling 145%. China in turn hit back at Washington with retaliatory tariffs of up to 125% on U.S. imports.



Widespread market turbulence following the tariffs announcement prompted a temporary climbdown by Trump, with the president last week announcing that the new duties on imports from most trading partners would be reduced to 10% for 90 days in order to allow for trade negotiations with Washington’s counterparts.



The WTO said in its Wednesday report that the impact of recent trade policy changes is likely to vary sharply from region to region.



In the adjusted forecast, North America now subtracts 1.7 percentage points from global merchandise trade growth in 2025, turning the overall figure negative.



Meanwhile, Asia and Europe continue to contribute positively, but less than in the baseline scenario, with Asia’s input halved to 0.6 percentage points.



The disruption in U.S.-China trade is expected “to trigger significant trade diversion,” the WTO added, raising concerns among third markets about increased competition from China.



“Chinese merchandise exports are projected to rise by 4% to 9% across all regions outside North America as trade is redirected. At the same time, U.S. imports from China are expected to fall sharply in sectors such as textiles, apparel and electrical equipment, creating new export opportunities for other suppliers able to fill the gap,” the trade organization remarked, noting that this could open the door for some least-developed countries to increase their exports to the U.S. market.

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Global trade outlook has ‘deteriorated sharply’ amid Trump tariff uncertainty, WTO warns

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy.jpg" alt="" class="wp-image-610037" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1yXNHy-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">A general view of people visiting the Trafalgar Tavern pub decorated with bunting and string lights on the bank of the River Thames in Greenwich on December 16, 2023 in London, United Kingdom.  John Keeble | Getty Images News | Getty Images</figcaption></figure>



The U.K.’s annual inflation rate fell to 2.6% in March, coming in below analyst expectations, according to data released by the Office for National Statistics (ONS) on Wednesday.



Economists polled by Reuters had anticipated the consumer price index would hit 2.7% in the twelve months to March.



The rate of price rises in Britain hit 2.8% in February, after rising sharply to 3% in January.



Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, rose by 3.4% in the year to March, down slightly from 3.5% in February.



The largest downward contributions to the monthly change in the inflation rate came from recreation and culture, and motor fuels, the ONS said, while the largest upward driver was clothing.



Sterling was up 0.25% against the U.S. dollar at $1.3265, following the data release.



The latest data will be analyzed closely by policymakers at the Bank of England,&nbsp;who are expected to cut interest rates when they next convene on May 8. The BOE held rates at 4.5% at its previous meeting in March amid a forecasted inflation hike and uncertainty over economic growth and global trade under U.S. President Donald Trump’s tariffs.



There was good news for the U.K. last week, when the latest monthly growth data showed that the British economy grew by 0.5% month-on-month in February. The U.K. is also hoping to sign a trade deal with Washington, having escaped relatively unscathed from Trump’s tariffs regime with just a baseline 10% duty on imports to the States.



Traders will be looking closely at the BOE’s next policy statement on Thursday for its assessment of the economic outlook for the country.



In a statement out in March, the central bank said “global trade policy uncertainty has intensified, and the United States has made a range of tariff announcements, to which some governments have responded.”



“Other geopolitical uncertainties have also increased and indicators of financial market volatility have risen globally,” it added.



The BOE warned in February that it expected inflation to temporarily rise to 3.7% in the third quarter of this year, as energy costs are set to accelerate. At the time, it also halved its 2025 growth forecast for the U.K. to 0.75%.



Ruth Gregory, deputy chief U.K. economist at Capital Economics, was among the analysts noting that the slowdown in inflation was not expected to last.



“The dip &#8230; won’t be sustained for long, with inflation set to rise to around 3.5% in the coming months. But we think a weak economy will quash inflation eventually and that the tariff shock has tilted the balance of risks towards lower inflation and faster falls in interest rates,” she said in emailed comments Wednesday.



“For now, we are sticking to our view that inflation will gradually fall to 2.0% in 2026. But the risks to that forecast appear to be increasingly skewed to the downside,” she added.

AA1yXNHy

UK inflation slows to cooler-than-expected 2.6% in March

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="768" height="402" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me.jpg" alt="" class="wp-image-609642" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me-300x157.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AA1CW0me-160x84.jpg 160w" sizes="auto, (max-width: 768px) 100vw, 768px" /><figcaption class="wp-element-caption">A shopper at a farmer’s market in San Francisco, California, U.S., on Thursday, March 27, 2025. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A day without major tariff developments from U.S. President Donald Trump’s administration is, for markets, a period of cautious optimism (or at least what passes as “optimism” in such unusual times). There was breathing room on Monday for markets to make tentative moves upward, especially after the news out late Friday of a last-minute exception for electronics from so-called reciprocal tariffs.&nbsp; White House officials are still making their rounds on major news channels to preach the sense of Trump’s economic policy. The latest to do so is National Economic Council Director Kevin Hassett, who, on Fox Business, said Monday the country would “100% not” fall into a recession this year. Consumers don’t share that faith. A Federal Reserve survey, conducted in March and released on Monday, is the latest in a series of consumer polls that show sentiment over the economy slumping. Any gains in the market, then, could last only as far as tariff don’t run further amok and cause economic damage, despite White House officials’ attempts to reassure on the latter front.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Markets across the globe rise U.S. stocks rose Monday, aided by a slight recovery in tech names on news of a tariff exemption for electronic goods. The S&amp;P 500 added 0.79%, the Dow Jones Industrial Average climbed 0.78% and the Nasdaq Composite advanced 0.64%. Asia-Pacific markets were mostly positive Tuesday. India’s Nifty 50 popped more than 2% at its open. Market watchers are awaiting the country’s March inflation figures, out later today. China’s CSI 300 fell around 0.3% amid UBS downgrading its forecast of the country’s 2025 economic growth.



Hassett says no chance of recession U.S. National Economic Council Director Kevin Hassett said Monday that “more than 10” countries had made “very good, amazing” trade deal offers to the U.S. He also said that there was no chance at all that the U.S. will experience a recession in 2025. A Federal Reserve Bank of New York survey released the same day — but conducted before April 2 — showed consumer worries in March growing over inflation, unemployment and the stock market.



Volatility from zero-day options Zero-day-to-expiration options are partly to blame for the wild swings in the stock market recently. Zero-day options, which are contracts that expire the same day they’re traded, have surged 23% in trading volume from the start of the year to April, according to JPMorgan data. “We find that 0DTE (+1DTE) have been instrumental in driving more intraday volatility, Maxwell Grinacoff, UBS’ head of U.S. equity derivatives research, said in a note.



Nvidia to build supercomputer in U.S. Nvidia said Monday it plans to produce up to $500 billion of artificial intelligence infrastructure in the U.S. via its manufacturing partnerships over the next four years. Its Blackwell AI chips have started production in Phoenix at Taiwan Semiconductor plants, the chipmaker wrote in a blog post. Nvidia is also building manufacturing plants in Texas to produce AI super computers — the first time Nvidia will make one entirely in the U.S.



Semiconductor support package amid probe South Korea on Tuesday announced a support package of 33 trillion won ($23.25 billion) for its semiconductor industry. That amount is about a quarter more than the 26 trillion won committed last year, according to a press release from the finance ministry, possibly in response to U.S. trade policy. The U.S. Commerce Department is conducting a national security investigation into imports of semiconductor technology and related downstream products, according to a Federal Register notice put online Monday. 



‘Prepare to be fooled’ on tariffs: Morgan Stanley Despite recent concessions on tariffs by Trump, Morgan Stanley cautioned investors not to let their guard down. “Investors should prepare to be fooled many more times,” the firm’s strategists led by Matthew Hornbach said in a note to clients titled “Fool Me Once, Shame On You. Fool Me Twice, Shame On Me.”



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108131519-1744643962951-gettyimages-2209073831-ECP_fc1250932.jpeg?v=1744678236&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="HANGZHOU, CHINA - APRIL 11 2025: A worker rests in a factory making steel bike rims for export to the U.S. in Hangzhou in east China's Zhejiang province Friday, April 11, 2025. (Photo credit should read Feature China/Future Publishing via Getty Images)"/><figcaption class="wp-element-caption">A worker rests in a factory making steel bike rims for export to the U.S. in Hangzhou in east China’s Zhejiang province Friday, April 11, 2025.  Feature China | Future Publishing | Getty Images</figcaption></figure>



If China is going to lose some manufacturing as a result of&nbsp; Trump’s tariffs, the U.S. manufacturing sector won’t be the main beneficiary, according to a new CNBC Supply Chain Survey. The Trump administration says a reshoring boom is coming, but most companies tell CNBC that the costs could as much as double to bring supply chains back and instead a new search for low-tariff regimes around the world will commence.



Nearly three-quarters of those surveyed (74%) said cost was the top reason for saying they would not be reshoring production, followed by the challenge of finding skilled labor (21%). The Trump administration has promised&nbsp;tax cuts for companies&nbsp;that bring back manufacturing, but the survey found taxes lower in the ranking of costs that impact manufacturing site decision making.

AA1CW0me

Consumers don’t agree with the White House that the economy will be fine

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="792" height="528" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1.jpg" alt="" class="wp-image-609358" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1.jpg 792w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/403148735-1-768x512.jpg 768w" sizes="auto, (max-width: 792px) 100vw, 792px" /><figcaption class="wp-element-caption">The Goldman Sachs headquarters in New York. Bloomberg | Bloomberg | Getty Images</figcaption></figure>



A growing majority of America’s top executives now expects the U.S. economy to enter a recession in the near future, according to a survey released Monday.



Of the more than 300 CEOs polled in April, 62% said they forecasted a recession or other economic downturn in the next six months, according to Chief Executive, an industry group that runs the survey. That’s up from 48% who said the same in March.



Chief Executive’s data underscores the growing concern within corporate America around the future of the U.S. economy. Fears about a forthcoming recession hit a boiling point in the last two weeks, as President Donald Trump’s on-again-off-again tariff policy ratcheted up volatility in financial markets and stirred panic among some consumers.



Indeed, around three-fourths of CEOs surveyed said tariffs would hurt their businesses in 2025. About two-thirds said they did not support Trump’s proposed levies, many of which are currently on pause.



<h2 class="wp-block-heading" id="h-economic-anxiety-among-executives"><a></a>Economic anxiety among executives</h2>



The monthly survey, which has run since 2002, includes several data points that paint a concerning picture of how America’s foremost business leaders view the economy.



An index of CEOs’ views on current business conditions tumbled 9% in April, continuing its decline after plunging 20% in the prior month. The measure now sits at its lowest level since the early months of the pandemic in 2020.



When forecasting business conditions a year out, CEOs held their view steady from March. Still, these readings were the lowest since late 2012 and have tanked around 29% from the end of 2024.



The survey found that more than four out of five chief executives project costs spiking this year, which is no surprise given the ongoing negotiations over import taxes between the White House and foreign countries. Around half forecast their percentage increases in expenses to be in the double digits.



In this vein, just 37% said they believe their companies’ profits will increase. That’s a steep drop from the 76% who gave this response in January.



To be sure, Chief Executive’s data set included a few bright spots. Slightly over half of respondents said they foresee business conditions bettering over the next year, an increase from the 39% share seen a month earlier.



Many CEO may be getting some tariff relief as well. Trump late Friday announced that smartphones and PCs would be exempt from duties, though Commerce Secretary Howard Lutnick said Sunday that these exemptions would be temporary.



Chief Executive’s data comes as U.S. business leaders have started flashing warning signs on the country’s economic future.



JPMorgan Chase CEO Jamie Dimon said Friday that he expects earnings estimates for S&amp;P 500 firms to fall due to the uncertainty around Trump’s levies. Also on Friday, BlackRock CEO Larry Fink warned that the U.S. economy may have already weakened to the point of growth coming in negative.



“I think we’re very close, if not in, a recession now,” Fink said on CNBC’s “Squawk on the Street.”

403148735 (1)

More than 60% of CEOs expect a recession in the next 6 months as tariff turmoil grows, survey says

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="720" height="405" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs.jpeg" alt="" class="wp-image-609254" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs.jpeg 720w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs-160x90.jpeg 160w" sizes="auto, (max-width: 720px) 100vw, 720px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



China’s Commerce Ministry called the U.S. tariff exemptions a “small step” and urged U.S. President Donald Trump to “completely abolish” the reciprocal tariffs, which include a 145% duty on imports from China.



“We urge the U.S. to heed the rational voices of the international community and domestic parties, take a big stride in correcting its mistakes, completely abolish the wrongful action of ‘reciprocal tariffs,’ and return to the correct path of resolving differences through equal dialogue based on mutual respect,” the ministry said in an online statement, according to a CNBC translation.



The ministry also said China is “evaluating the relevant impact” of the tariff exemptions on some tech products announced late Friday.



The White House did not immediately respond to CNBC’s request for comment.



U.S. Trade Representative Jamieson Greer said Sunday that “right now,” there are not any plans for Trump and Chinese President Xi Jinping to speak.



“This issue is truly at the leaders level,” he said on CBS News’ Face the Nation.



The response in China to U.S. tariffs can be seen in both state media and social media. The recent exemptions are being presented domestically as Trump is backing down and further evidence that Chinese supply chains are not easily replaceable by U.S. companies.



“Public opinion widely views this as another retreat by the U.S. government on its tariff policies,” the official Beijing Daily wrote.



On China’s popular social media platform Weibo, the hashtag “Trump administration retreats again” ranked No. 2 on the hot search list.



The Trump administration late Friday exempted some widely used tech devices and components, including smartphones, computers, semiconductors, solar cells and flash drives, from reciprocal tariffs, according to guidance from U.S. Customs and Border Protection.



The move was viewed as a major win for tech giants, including Apple, which manufacture many products in China. But the long-lasting effects on the U.S. economy and small businesses from the China tariffs may be irreversible, CNBC previously reported.



A 20% tariff on all Chinese products still remains in effect, despite the tariff exemption announcement.



—&nbsp;CNBC’s Eunice Yoon contributed to this report

108130695-17443731112025-04-10t210317z_1230912817_rc28vdaw0pbf_rtrmadp_0_usa-trump-tariffs

China urges Trump to correct mistakes and heed ‘rational voices’ on reciprocal tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-820x547.jpeg" alt="" class="wp-image-608268" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-820x547.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-1536x1024.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108130446-17443187092025-04-10t205242z_1564031578_rc28vdaqwvty_rtrmadp_0_usa-trump-tariffs-scaled.jpeg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. and Chinese flags and a “125% tariffs” label are seen in this illustration taken April 10, 2025.  Dado Ruvic | Reuters</figcaption></figure>



China on Friday retaliated against U.S. President Donald Trump’s reciprocal tariffs by raising its levies on U.S. goods to 125% from 84%, the Chinese finance ministry said.



“Even if the U.S. continues to impose higher tariffs, it will no longer make economic sense and will become a joke in the history of world economy,” the ministry said in a statement, according to a CNBC translation.



“With tariff rates at the current level, there is no longer a market for U.S. goods imported into China,” the statement noted, adding that “if the U.S. government continues to increase tariffs on China, Beijing will ignore.”



The Trump administration confirmed to CNBC on Thursday that the U.S. tariff rate on Chinese imports now effectively totals 145%. Trump’s latest executive order boosted reciprocal tariffs on Beijing to 125%, stacked on top of a combined 20% fentanyl-related tariff imposed in February and March.



“This is the end of the escalation in terms of bilateral tariff rates. Both China and the US have sent clear messages, there is no point of raising tariffs further,” said Zhiwei Zhang, president and chief economist at Pinpoint Asset Management.



The next step would be to evaluate the damage to economic activities in the U.S. and China, Zhang said, adding that there is no sign that the two governments would start negotiations and avoid major disruption in the global supply chains.



Unlike the previous rounds of retaliatory measures, Beijing has refrained from announcing further export control measures or widening its so-called “unreliable entity list”&nbsp;with the addition of more&nbsp;American firms, which would subject them to further restrictions while operating in China.



Despite the latest escalation, a spokesperson of China’s commerce ministry reiterated in a separate statement Friday that Beijing is open to negotiate with the U.S. on an equal footing.



Hopes for a U.S.-China deal to resolve trade tensions have faded fast as Beijing has been hitting back in the last week with tit-for-tat duties on American goods and wide-ranging restrictions on U.S. businesses.



“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent told Fox Business on Wednesday after China’s raised tariffs to 84%.



“They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them,” Bessent said.



Goldman Sachs on Thursday cut its China GDP forecast to 4% given the drag from U.S. trade tensions and slower global growth.



While Chinese exports to the U.S. only account for about 3 percentage points of China’s total GDP, there’s still a significant impact on employment, Goldman Sachs analysts said. They estimate around 10 million to 20 million workers in China are involved with U.S.-bound export businesses.



China on Friday reiterated that it will continue to “resolutely counter-attack and fight to the end” if the U.S. continues to infringe on China’s interests.



In a&nbsp;<a href="https://www.fmprc.gov.cn/zyxw/202504/t20250411_11592994.shtml" target="_blank" rel="noreferrer noopener">meeting</a>&nbsp;with Spanish Prime Minister Pedro Sánchez on Friday, Chinese President Xi Jinping said “there is no winner in a tariff war and going against the world will only isolate itself,” according to a CNBC-translated government readout. The two leaders pledged to deepen ties in areas including trade, investment and technological innovation.



The White House did not immediately respond to CNBC’s request for comment.



— CNBC’s Lim Hui Jie and Evelyn Cheng contributed to this report.

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China strikes back with 125% tariffs on U.S. goods as trade war intensifies

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-820x461.jpeg" alt="" class="wp-image-607937" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127404-1744022846334-gettyimages-968561798-_DSC2829.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">In this photo illustration, a double exposure images shows U.S. President Donald Trump against the EU flag. Sopa Images | Lightrocket | Getty Images</figcaption></figure>



The European Union will pause the adoption of its retaliatory tariffs on a swathe of U.S. goods for 90 days, European Commission President Ursula von der Leyen said, a day after the White House issued a reprieve on most of its own levies.



On Wednesday, EU members voted in favor of the package, which was designed in response to the U.S. 25% tariffs on steel and aluminum launched last month. The duties were due to be finalized in the coming days, with an initial tranche set to come into effect on April 15. The full list of targeted items has not yet been published, though a draft document seen by CNBC in March listed products spanning clothing, poultry, grains, machinery and more.



“We took note of the announcement by President Trump. We want to give negotiations a chance,” von der Leyen said on Thursday.



“If negotiations are not satisfactory, our countermeasures will kick in. Preparatory work on further countermeasures continues. As I have said before, all options remain on the table.”



As well as Trump’s 25% duties on steel, aluminum and autos, the EU was hit with a 20% U.S. tariff rate on almost all goods as part of the sweeping duties announced last week.



Trump on Wednesday jolted markets when he revealed the reduction of new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow for trade negotiations.



U.S. stock markets soared on the news, while Asia-Pacific and Europe joined the rally on Thursday. The euro was 1.2% higher against the U.S. dollar at midday London time on Thursday, trading at $1.1079.



In a statement earlier Thursday, von der Leyen said she welcomed the pause of Trump’s full “reciprocal tariff” plan, calling it an “important step towards stabilizing the global economy.”



“Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States,” she said.



As well as negotiating with the U.S. and forming countermeasures, the EU says it is also strengthening and diversifying its other trade relationships and reducing friction in its single market in response to Trump’s actions.



EU relations with the U.S. have soured significantly this year. Trump has repeatedly accused the 27-nation bloc of treating the U.S. “very unfairly” due to the imbalance in their trade in goods.



Across goods, services and investment, trade between the two economies is roughly equal, leading to questions over whether the EU could resort to targeting U.S. services including technology in its response.

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European Union to put countermeasures to U.S. tariffs on hold for 90 days

<h2 class="wp-block-heading">Tariff suspension ‘the first right step,’ Polish finance minister says</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108129777-1744272485007-gettyimages-2203945300-BELGIUM_ECOFIN.jpeg?v=1744272514&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="Andrzej Domanski, Poland's finance minster, during a news conference at the Economic and Financial Affairs Council (ECOFIN) meeting at the European Council headquarters in Brussels, Belgium, on Tuesday, March 11, 2025. EU policymakers are scrambling to ramp up the bloc's defense funding and support for Ukraine after Donald Trump halted aid to Kyiv. Photographer: Simon Wohlfahrt/Bloomberg via Getty Images"/><figcaption class="wp-element-caption">Andrzej Domanski, Poland’s finance minster, during a news conference at the Economic and Financial Affairs Council (ECOFIN) meeting at the European Council headquarters in Brussels, Belgium, on Tuesday, March 11, 2025.  Bloomberg | Bloomberg | Getty Images</figcaption></figure>



Polish Finance Minister Andrzej Domanski welcomed the U.S. temporary suspension of most reciprocal tariffs.



“The first right step towards de-escalation. Less emotion, more focus on economic growth,” he said in a Google-translated social media post.



Poland has historically been a stalwart U.S. ally in Europe, especially in matters of regional security. As a member of the European Union, Poland was struck with 20% reciprocal tariffs under the White House’s April 2 announcement.



—&nbsp;Ruxandra Iordache



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<h2 class="wp-block-heading" id="h-european-markets-soar-at-market-open">European markets soar at market open</h2>



European stocks soared at the Thursday market open, with the Stoxx 600 index up by 7.25% by 8:21 a.m. London time.



All sectors were in the green at the start of the session, with banks, autos and health care logging some of the highest hikes, higher by 9.95%, 7.43% and 7.41%, respectively.



—&nbsp;Ruxandra Iordache



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<h2 class="wp-block-heading" id="h-asean-group-vows-no-trade-retaliation-against-the-u-s">ASEAN group vows no trade retaliation against the U.S.</h2>



The 10-member ASEAN group pledged not to impose any retaliatory measures in response to White House tariffs and to “engage in a frank and constructive dialogue” with Washington on trade relations.



“We regard the U.S. as a longstanding and valued economic partner of ASEAN,” the group said in a statement, adding, “We remain committed to safeguarding ASEAN’s economic interests as well as maintaining strong and mutually beneficial trade relations with the U.S.”



The ASEAN group comprises Brunei, Cambodia, Indonesia, Laos, Malaysia, Myanmar, the Philippines, Singapore, Thailand and Vietnam.&nbsp;



—&nbsp;Ruxandra Iordache



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<h2 class="wp-block-heading" id="h-european-union-welcomes-trump-tariff-reprieve-von-der-leyen">European Union welcomes Trump tariff reprieve: von der Leyen</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108129025-17442032332025-04-09t121419z_1722448607_rc2cudaj8nz6_rtrmadp_0_usa-trump-tariffs-eu.jpeg?v=1744266672&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="European Commission President Ursula von der Leyen reacts as she meets with Iceland's Prime Minister Kristrun Frostadottir (not pictured), in Brussels, Belgium April 9, 2025. REUTERS/Yves Herman"/><figcaption class="wp-element-caption">European Commission President Ursula von der Leyen looks on as she meets with Iceland’s Prime Minister Kristrun Frostadottir (not pictured), in Brussels, Belgium, on April 9, 2025. Yves Herman | Reuters</figcaption></figure>



European Commission President Ursula von der Leyen welcomed Trump’s decision to pause “reciprocal” tariffs against several nations, adding the bloc “remains committed to constructive negotiations” with the White House.



“It’s an important step towards stabilizing the global economy. Clear, predictable conditions are essential for trade and supply chains to function,” she said in a social media post.



“Tariffs are taxes that only hurt businesses and consumers. That’s why I’ve consistently advocated for a zero-for-zero tariff agreement between the European Union and the United States.”



At the same time, the EU, which on Wednesday voted to approve its first set of retaliatory steps to counter U.S. tariffs on steel and aluminum, is focusing on diversifying its trade partnerships, von der Leyen said.



—&nbsp;Ruxandra Iordache



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<h2 class="wp-block-heading" id="h-trump-unlikely-to-revamp-extreme-tariff-policies-but-the-damage-has-been-done-deutsche-bank">Trump unlikely to revamp extreme tariff policies, but ‘the damage has been done’: Deutsche Bank</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108129447-17442258192025-04-09t190936z_1050014360_rc2judaqjkne_rtrmadp_0_usa-trump.jpeg?v=1744225839&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="U.S. President Donald Trump speaks during an event with the racing champions from NASCAR Cup Series, NTT IndyCar Series, and IMSA WeatherTech SportsCar Championship, at the White House in Washington, D.C., U.S., April 9, 2025. REUTERS/Nathan Howard"/><figcaption class="wp-element-caption">U.S. President Donald Trump speaks during an event with the racing champions from NASCAR Cup Series, NTT IndyCar Series, and IMSA WeatherTech SportsCar Championship, at the White House in Washington, D.C., U.S., April 9, 2025. Nathan Howard | Reuters </figcaption></figure>



In a note to clients on Wednesday evening, Deutsche Bank Research’s George Saravelos noted that U.S. President Donald Trump had mentioned the bond market during his press conference at the White House that day.



“The administration is finally signalling responsiveness to the very extreme market conditions we highlighted in the morning. At the margin, this should reduce the probability that such an extreme policy mix returns,” Saravelos said.



Stocks on Wall Street surged on Wednesday after Trump announced a 90-day pause on country-specific tariffs, with the exception of new duties on China.



Despite the market response, Saravelos warned that “the damage has been done” by Trump’s reciprocal tariffs policy.



“Even if the tariffs are permanently suspended, damage has been done to the economy via a permanent sense of unpredictability in policy,” Saravelos explained. “The events of the last few weeks will resonate amongst global economic partners during the upcoming negotiations on trade and indeed for many years to come. The desire to build greater strategic independence from the US across all fronts will be here to stay.”



—&nbsp;Chloe Taylor

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Trump tariffs: World reacts as White House issues temporary tariff reprieve; China’s duties kick in

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-820x461.jpeg" alt="" class="wp-image-607852" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108129074-1744205767394-gettyimages-2208184612-_s019698_miuhqrg1.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption"> U.S. President Donald Trump holds up a chart while speaking during a “Make America Wealthy Again” trade announcement on April 2, 2025 in Washington, DC. Chip Somodevilla | Getty Images News | Getty Images</figcaption></figure>



President Donald Trump on Wednesday dropped new tariff rates on imports from most U.S. trade partners to 10% for 90 days to allow trade negotiations with those countries.



Trump announced the pause hours after goods from nearly 90 nations became subject to stiffer, so-called reciprocal tariffs imposed by the United States.



The president also said in a social media post that he was raising the tariffs imposed on imports from China to 125% “effective immediately” due to the “lack of respect that China has shown to the World’s Markets.”



China, which is the U.S.’s third-largest trading partner, earlier Wednesday said it would increase its tariff rate for imports from the U.S. to 84%.



Trump said “more than 75 Countries” contacted U.S. officials to negotiate after he unveiled his new tariffs last week.



Stock market indices rocketed sharply higher Wednesday on Trump’s announcement, reversing four days of losses. The benchmark S&amp;P 500 index leapt by 7%, which puts it on track for its largest single-day gain in five years.



When asked later about the reason for his decision, Trump told reporters, “Well, I thought that people were jumping a little bit out of line.”



“They were getting yippy, you know, they were getting a little bit yippy, a little bit afraid,” Trump said at the White House.



Treasury Secretary Scott Bessett claimed to reporters that Trump had always intended to put the brakes on the wide-ranging tariffs the president announced last week.



“This was his strategy all along,” Bessent said at the White House, where officials, including him, had denied for days that the tariffs would be suspended.



On April 2, Trump had said he would impose a baseline rate of 10% for tariffs on imports from more than 180 countries.



A subset of 90 countries’ imports would be subject to reciprocal tariffs that took effect Wednesday. Those enhanced levies ranged from a low of 11% to a high of 50%.



Financial markets have been in turmoil since Trump announced with plan, with U.S. stock markets suffering four straight days of declines as of Tuesday.



Senate Minority Leader Chuck Schumer, D-NY, criticized Trump on Wednesday,, saying the president “is feeling the heat from Democrats and across America about how bad these tariffs are.”



“He is reeling, he is retreating, and that is a good thing,” said Schumer.



“This is government by chaos,”&nbsp;Schumer said,&nbsp;“He keeps changing things from day to day. His advisers are fighting among themselves, calling each other names, and you cannot run a country with such chaos, with such unpredictability, with such lack of understanding of what’s going on in the world and the facts.



Commerce Secretary Howard Lutnick, in a tweet, said that he and Treasury Secretary Scott Bessent sat with Trump while he wrote out the announcement on Truth Social, “one of the most extraordinary Truth posts of his Presidency.”



“The world is ready to work with President Trump to fix global trade, and China has chosen the opposite direction,” Lutnick wrote.

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Trump temporarily drops tariffs to 10% for most countries, hits China harder with 125%

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-820x461.jpeg" alt="" class="wp-image-607599" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">European flags fly in front of the Berlaymont building. Omar Havana | Getty Images News | Getty Images</figcaption></figure>



The European Union on Wednesday voted to approve its first set of retaliatory measures to counter tariffs imposed by the U.S. on steel and aluminum.



The European Commission, the bloc’s executive arm, said duties would start being collected from April 15. The response package was unveiled last month targeting a range of goods.



The 27-nation bloc had warned it would act to protect European business and consumers after U.S. President Donald Trump imposed 25% duties on the metals.



“The EU considers US tariffs unjustified and damaging, causing economic harm to both sides, as well&nbsp;as the global economy. The EU has stated its clear preference to find negotiated outcomes with the&nbsp;US, which would be balanced and mutually beneficial,” the European Commission said.



The EU also faces tariffs of 20% on almost all its U.S. imports, as part of Trump’s targeting of over 180 countries and territories, as announced by the White House leader on April 2.



European Commission President Ursula von der Leyen at the time said the EU was ready to retaliate unless negotiations with the U.S. administration were successful.



“We are prepared to respond,” she said, adding that the EU was preparing for further countermeasures to protect its interests and businesses. But, von der Leyen also called for talks with the U.S., saying it was “not too late to address concerns through negotiations.”



Maros Sefcovic, the EU’s commissioner for trade and economic security, said Monday that the bloc would start collecting a first tranche of tariffs on U.S. imports from April 15, with a second set of measures following on May 15.



The U.S. tariffs are impacting 380 billion euros ($420.45 billion) worth of Europe’s exports to the United States, amounting to around 70% of total exports, Sefcovic said during a press briefing.



“To put it in perspective, that’s over 80 billion euros in duties, an eleven-fold jump from the 7 billion [euros] the U.S. currently collects,” he added.

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European Union approves first set of retaliatory tariffs on U.S. imports

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit-820x462.png" alt="" class="wp-image-607580" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit-820x462.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128829-1744178966635-gettyimages-1156616263-dji_0090-edit.png 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A container cargo ship at a port terminal in Thailand. Mr.cole_photographer | Moment | Getty Images</figcaption></figure>



Many companies had been steadily reducing their reliance on China as a manufacturing hub since President Donald Trump’s first term, hoping to blunt the impact of punitive levies from the United States. Then his latest “reciprocal” tariffs came along.



Trump’s move to impose tariffs on goods&nbsp;on a broader swathe of countries&nbsp;is now putting those diversification plans in disarray and leaving companies scrambling to decide where and how their goods are produced.



Steve Greenspon, CEO of Illinois-based houseware company Honey-Can-Do International, started moving more of his production from China to Vietnam during Trump’s first presidential term. The company supplies household durables such as shelving units, coat hangers and laundry hampers to U.S. retail giants such as Walmart, Target and Amazon.



The company relied on Chinese suppliers for as much as 70% of its products before Trump’s first term. That share has since fallen to less than a third as Vietnam and Taiwan have become increasingly important as sourcing destinations.



News of high tariffs on Taiwan and Vietnam stings, given the significant investments made, Greenspon said.



“It’s crushing to our company. It is disappointing. It is saddening. It’s frustrating,” Greenspon said.



“As a U.S.-based company, this is incredibly hurtful that our own government is doing this to us,” he said, noting that moving production back to the U.S. is not an option, given high labor costs and the absence of the requisite infrastructure.



The tariffs will only force businesses to charge higher prices from consumers, eventually making these products’ pricing less competitive, he said.



Trump’s trade war with China in his first term fueled the “China Plus One” strategy, which saw many manufacturers shift part of their production away from China to other Asian countries with lower labor costs and moderate tariff risks from the U.S.



But after Trump’s latest announcement of a much broader tariff regime — including a minimum 10% baseline tariff on all countries and much higher tariff rates on certain Asian economies — firms that adhered to “China Plus One” may be forced to reevaluate their options.



“The ‘China Plus One’ strategy has been severely undercut by Trump’s tariffs that have by now encompassed every U.S. trading partner,” Eswar Prasad, professor of international trade and economics at Cornell University, told CNBC.&nbsp;



“The viability of rerouting output and restructuring supply chains through countries such as Vietnam and India, with whom the U.S. had more constructive trading relationships, has been shattered by the latest round of tariffs,” he added.&nbsp;



India and Vietnam were two major beneficiaries of that shift away from China, particularly in the apparel and consumer electronics sectors. American tech giant Apple, for example, has been producing more products in both countries. 



Imports from India, Vietnam and Taiwan are now hit with additional levies totaling 26%, 46% and 32%, respectively. A punitive 104% tariff on China also took effect Wednesday.



According to Prasad, the high level of tariffs imposed on U.S. imports from China means that there is still an advantage in routing supply chains through countries subject to relatively lower tariffs.&nbsp;



“However, the entire logic underpinning global supply chains as a means to cut costs and improve efficiency has been decimated by tariffs,” he said, adding that it will substantially add to the costs of maintaining “lean and mean supply chains” that cross national borders, often many times over.&nbsp;



<h2 class="wp-block-heading" id="h-shifting-ground"><a></a>Shifting ground</h2>



Economic and supply chain experts note that the sincerity of Trump’s tariff rates remains uncertain, with many expecting them to be lowered based on negotiations between the Trump administration and individual countries.



Daniel Newman, CEO and chief analyst at tech-focused research firm The Futurum Group, told CNBC he doesn’t believe the tariffs will stay in their current form, and while he expects “more fair trade deals” will be made with trading partners such as Vietnam and India, the China-U.S. outcome is far less certain.



There have been signs that Vietnam and India intend to bargain with Trump on trade terms. Still, the uncertainty surrounding these negotiations poses a dilemma for companies.



“I have spoken to a few CEOs and business leaders that have talked about their workarounds over the last decades potentially being problematic and the current uncertainty making it nearly impossible to build sufficient mitigation plans for really any time horizon,” Newman said.&nbsp;



According to Newman, businesses affected by the tariffs will diligently work with their supply chain teams to determine the proper mitigation strategy. But, “if the tariffs stick in their current form, some of the China Plus One investments made could prove to have been in vain,” he added.&nbsp;



<h2 class="wp-block-heading" id="h-wait-and-see-nbsp"><a></a>Wait and see?&nbsp;</h2>



As trade negotiations unfold, many companies are waiting before altering any production plans.&nbsp;



“I think they’ll wait to see how things settle out. Countries, including Vietnam, are trying to bargain with Trump. I can’t predict how that will turn out, but companies will likely wait to see if it leads to reduced tariffs,” said William Reinsch, Scholl chair in international business at the Center for Strategic and International Studies.&nbsp;



If those bilateral negotiations fail, companies will be forced to consider further tariff arbitrage over the long term — moving parts of their supply chains to countries with lower tariffs, he added.&nbsp;



According to the Trump administration, tariffs are part of a plan to bring about a massive resurgence of U.S. manufacturing. Some experts told CNBC that a certain amount of onshoring and investment back in the U.S. will likely occur in particular industries.&nbsp;



“Faced with a highly uncertain and volatile landscape of tariffs and other trade restrictions, corporations are likely to emphasize resilience rather than efficiency of supply chains,” said Prasad.&nbsp;



“This could mean a greater degree of reshoring of production [to the U.S.] as well as friend-shoring to countries that are at least seen as geopolitical allies of the U.S.,” Prasad added.&nbsp;



However, moving production can be a long, capital-intensive process for many supply chains, especially those in high-tech industries.



For example, Apple’s partner Foxconn took a number of years to begin producing cutting-edge iPhones in India, and the factories reportedly encountered many struggles.



“Investments in factories once made cannot be easily or instantaneously reversed&#8230; Moving those factories to another destination will take several years,” said Arthur Dong, professor of strategy and economics at Georgetown University.



Additionally, depending on the industry, firms are constrained by various factors when considering shifts in supply chains, such as the availability of supply inputs, infrastructure, the quality and cost of local labor, regulation and governance.&nbsp;



Such factors leave companies with a difficult decision, said Dong, who added that some may choose to ride out the storm on supply chains for Trump’s three- to four-year term, hoping for a change in U.S. politics in the upcoming midterm elections.

108128829-1744178966635-gettyimages-1156616263-dji_0090-edit

Trump’s tariff plan is throwing into disarray companies’ efforts to diversify out of China

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-820x461.jpeg" alt="" class="wp-image-607544" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Chinese flag flies in Tiananmen square, as seen from the Great Hall of the People where meetings of the National People’s Congress continued in Beijing on March 6, 2025. Greg Baker | Afp | Getty Images</figcaption></figure>



China has pushed back again on U.S. President Donald Trump’s tariff policies by hiking its levies on U.S. imports to more than 80%.



Tariffs on U.S. goods entering China will rise to 84% from 34% starting April 10, according to a translation of a Office of the Tariff Commission of the State Council announcement. The hike comes in response to the latest U.S. tariff increase on Chinese goods to more than 100% that began at midnight.



The tit-for-tat escalation of tariffs threatens to crush trade between the world’s two largest economies. According to the Office of the U.S. Trade Representative, the U.S. exported $143.5 billion of goods to China in 2024, while importing products worth $438.9 billion.



The Trump administration announced a sweeping new tariff policy last week, warning other countries not to retaliate. Some nations, including Japan, have seemed willing to negotiate on tariffs, but China appears to be taking a more hardline stance and quickly announced a countertariff.



After China’s initial response to the April 2 tariff rollout, Trump announced an additional 50% hike, putting the total level for import taxes on Chinese goods at 104%.



“It’s unfortunate that the Chinese actually don’t want to come and negotiate, because they are the worst offenders in the international trading system,” U.S. Treasury Secretary Scott Bessent told Fox Business on Wednesday after China’s latest announcement. “They have the most imbalanced economy in the history of the modern world, and I can tell you that this escalation is a loser for them.”



The U.S. had already imposed new tariffs on China before it rolled out its full trade policy in April. China, along with Canada and Mexico, was hit with new levies at the start of Trump’s second term as part of what the administration said was an effort to stop fentanyl from entering the U.S.



The trade war has spooked investors around the world by increasing the odds of slower economic growth, higher inflation and lower corporate profits, sparking a sharp sell-off in April. The S&amp;P 500 finished Tuesday down nearly 20% from its peak, putting the U.S. large-cap stock index in a bear market. South Korea’s Kospi Index fell into a bear market of its own on Wednesday. Stocks in Shanghai and Hong Kong are also down sharply since the U.S. tariff announcement on April 2.

108127367-1744016460156-gettyimages-2202949274-AFP_36ZD4EZ

China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="546" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-820x546.jpeg" alt="" class="wp-image-607109" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-820x546.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-300x200.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-135x90.jpeg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel-768x512.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel.jpeg 1520w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Donald Trump gestures during a meeting with Israeli Prime Minister Benjamin Netanyahu (not pictured) in the Oval Office at the White House in Washington, U.S., April 7, 2025.  Kevin Mohatt | Reuters</figcaption></figure>



The meaning of the word “reciprocity” is being strained by the Trump administration. Not only did the White House use a bizarre formula to determine the degree of its “reciprocal” tariffs on other countries, but it also refused to return the favor when Vietnam and the European Union offered to remove tariffs on U.S. imports.



White House trade advisor Peter Navarro said on CNBC’s “Squawk Box” that it’s Vietnam’s “nontariff cheating that matters,” citing examples such as how Chinese goods are often exported from Vietnam and intellectual property theft. This suggests that the Trump administration sees tariffs not just as a means to address U.S. trade imbalance (which, itself, is already not a good indicator of economic health), but also a way of fundamentally changing the way global trade and manufacturing are being conducted.



Business leaders, many of them steering companies that rely on — and have profited from — the current economic paradigm, are starting to voice their concerns and even vent their displeasure at Trump tariffs. Some are supporters and donors of the Republican Party. With the Trump administration’s idiosyncratic understanding of “reciprocity,” however, it seems unlikely it will repay their goodwill with its own.



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Nasdaq rises and Asian shares rebound U.S. markets mostly fell Monday. The S&amp;P 500 lost 0.23% and was briefly in bear market territory — a 20% fall from its recent high — during the trading session. The Dow Jones Industrial Average dropped 0.91%, and swung 2,595 points from low to high, its largest intraday point swing ever recorded. But the Nasdaq Composite edged up 0.1% as investors bought some megacap tech stocks — but Apple was bludgeoned again. Asia-Pacific markets climbed Tuesday, rebounding from heavy losses the previous day. Japan’s Nikkei 225 jumped nearly 6% and Hong Kong’s Hang Seng Index added 0.3%.



China pledges to ‘fight to the end’ U.S. President Donald Trump on Monday threatened to slap additional 50% tariffs on China — which would bring total duties on Chinese imports to 104% — after Beijing retaliated with its own levies of 34% on all U.S. goods. On Tuesday, China’s Commerce Ministry said it “resolutely opposes” Trump’s additional tariffs and vowed to “fight to the end,” according to a statement translated by CNBC.



White House rejects 0% tariff deals That said, even if China had offered concessions to the United States, the Trump administration might not have budged. White House trade advisor Peter Navarro said Monday that an offer by Vietnam to eliminate tariffs on U.S. imports “means nothing to us because it’s the nontariff cheating that matters.” Trump also rejected the European Union’s offer of “zero-for-zero” tariffs with the U.S. for industrial goods.



Growing fears and dissatisfaction Business leaders are sounding the alarm over the potential fallout from Trump tariffs. BlackRock CEO Larry Fink said Monday that “Most CEOs I talk to would say we are probably in a recession right now.” JPMorgan Chase CEO Jamie Dimon, in his annual shareholder letter Monday, wrote that tariffs are likely to cause “inflationary outcomes” and “will slow down growth” of an “already weakening” economy. And Home Depot co-founder Ken Langone, a megadonor to the Republican Party, called the 46% import duties on Vietnam “bulls&#8212;.”



[PRO] Waiting for ‘sustained bottom’ DoubleLine Capital CEO Jeffrey Gundlach said on CNBC’s “Closing Bell” Monday that he’s concerned over the lack of bounce in the market, and would hold cash until the S&amp;P 500 hits a “sustained bottom.” Here’s where Gundlach thinks the S&amp;P 500 could end up before it starts to rise again.   



<h2 class="wp-block-heading" id="h-and-finally"><a></a>And finally&#8230;</h2>



European and Asian defense stocks have rallied this year. A lack of trust in the U.S. could be driving those gains



While stocks have generally sold off after U.S. President Donald Trump announced his plan for “reciprocal tariffs,” European and Asian arms manufacturers are still posting respectable gains on a year-to-date basis, with some rising over 100%.



Veteran investor and strategist at Quantum Strategy David Roche told CNBC the rise in defense stocks outside of the U.S is due to the reduction in trust of the U.S. as an ally.



After the Trump administration’s rattling of long-held global alliances, countries have poured money into their own defense budgets, sending defense stocks higher. In Germany, lawmakers passed a&nbsp;historic debt reform, paving the way for a huge splurge on defense. U.K. Prime Minister Keir Starmer has also&nbsp;pledged to hike Britain’s national spending on defense.

108127933-17440569022025-04-07t201357z_142193552_rc27tdaib6pb_rtrmadp_0_usa-trump-tariffs-israel

The Trump administration wants more than 0% tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="462" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-820x462.png" alt="" class="wp-image-605140" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-820x462.png 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-300x169.png 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-160x90.png 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs-768x432.png 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs.png 1480w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">U.S. President Donald Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, D.C., on April 2, 2025.
Leah Millis | Reuters</figcaption></figure>



<h2 class="wp-block-heading">Richard Branson: Reverse ‘colossal mistake’ of tariffs or face ‘ruin’</h2>



Billionaire Richard Branson is warning that the U.S. “will face ruin for years to come” if the Trump administration does not immediately “change course” on its tariff policies.



“The US government can still turn things around, but it must act in the next few hours,” the Virgin Group co-founder wrote on X.



“This is the moment to own up to a colossal mistake and change course. Otherwise, America will face ruin for years to come,” he wrote.



—&nbsp;Kevin Breuninger



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-fake-news-white-house-dismisses-report-of-trump-considering-90-day-pause">‘Fake news’: White House dismisses report of Trump considering 90-day pause</h2>



The White House dismissed a wire headline that said Trump is considering pausing new tariffs for 90 days.



“Fake news,” White House Press Secretary Karoline Leavitt told CNBC’s Eamon Javers after a headline that cited Kevin Hassett, the director of the National Economic Council.



Trump himself posted on social media a video of Fox Business host Maria Bartiromo saying, “Rates are plummeting, oil prices are plummeting, deregulation is happening.”



“President Trump is not going to bend,” Bartiromo said in the video.



&#8211; Dan Mangan



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading">Trump: ‘Not sustainable’ for U.S. to lose $1.9 trillion on trade</h2>



Trump writes that it’s “not sustainable” for the U.S. to “lose $1.9 trillion on trade” in a&nbsp;<a href="https://truthsocial.com/@realDonaldTrump/posts/114297055955956469" target="_blank" rel="noreferrer noopener">post</a>&nbsp;just now on Truth Social.



Trump’s post includes a video of him talking to reporters, in which he also says that the U.S. can’t lose money on trade “and also spend a lot of money on NATO in order to protect European nations.”



— Erin Doherty



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-tesla-shares-are-down-20-since-lutnick-urged-buy-tesla">Tesla shares are down 20% since Lutnick urged ‘Buy Tesla’</h2>



Tesla shares are trading around 20% lower than they were when Lutnick urged people to “Buy Tesla” last month.



Lutnick touted Tesla, whose CEO is the Trump administration DOGE chief Elon Musk, in a March 19 interview on Fox News.



“It’s unbelievable that this guy’s stock is so cheap,” Lutnick said. “It’ll never be this cheap again.”



As it turns out, it would be.



— Dan Mangan



<hr class="wp-block-separator has-alpha-channel-opacity"/>



<h2 class="wp-block-heading" id="h-canada-initiates-wto-dispute-over-auto-tariffs">Canada initiates WTO dispute over auto tariffs</h2>



Canada filed a dispute with the the World Trade Organization concerning Trump’s 25% tariffs on automobiles and automobile parts imported from Canada into the U.S.



Canada requested WTO dispute consultations with the U.S. concerning the new levies, the global trade organization said. The WTO says the request for consultations formally initiates a dispute in the organization.



Consultations will give the parties an opportunity to discuss the matter without proceeding further with litigation. After 60 days, if consultations have failed to resolve the dispute, the complainant may request adjudication by a panel, according to the WTO.



Canada claims the measures are inconsistent with the U.S.′ obligations under various provisions of the “General Agreement on Tariffs and Trade” of 1994.



— Michael Wayland

108125360-17436290092025-04-02t210742z_1005580332_rc2rpdao7slw_rtrmadp_0_usa-trump-tariffs

White House denies that Trump is considering 90-day tariff pause

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-820x547.jpg" alt="" class="wp-image-474613" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-1536x1025.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/04/GettyImages-1701923070-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Jamie Dimon, chief executive officer of JPMorgan Chase &amp; Co., during a Bloomberg Television interview on the sidelines of the JPMorgan Tech Stars Leadership Forum in London, UK, on Monday, Oct. 2, 2023. &#8220;Your children are going to live to 100 and not have cancer because of technology,&#8221; Dimon said. Photographer: Jason Alden/Bloomberg via Getty Images</figcaption></figure>



JPMorgan Chase CEO Jamie Dimon said Monday that tariffs announced by President Donald Trump last week will likely boost prices on both domestic and imported goods, weighing down a U.S. economy that had already been slowing.



Dimon, 69, addressed the tariff policy Trump announced on April 2 in his annual shareholder letter, which has become a closely read screed on the state of the economy, proposals for the issues facing the U.S. and his take on effective management.



“Whatever you think of the legitimate reasons for the newly announced tariffs – and, of course, there are some – or the long-term effect, good or bad, there are likely to be important short-term effects,” Dimon said. “We are likely to see inflationary outcomes, not only on imported goods but on domestic prices, as input costs rise and demand increases on domestic products.”



“Whether or not the menu of tariffs causes a recession remains in question, but it will slow down growth,” he said.



Dimon is the first CEO of a major Wall Street bank to publicly address Trump’s sweeping tariff policy as global markets crash. Though the JPMorgan chairman has often used his platform to highlight geopolitical and financial risks he sees, this year’s letter comes at an unusually turbulent time. Stocks have been in freefall since Trump’s announcement shocked global markets, causing the worst week for U.S. equities since the outbreak of the Covid pandemic in 2020.



His remarks appear to backtrack earlier comments he made in January, when Dimon said that people should “get over” tariff concerns because they were good for national security. At the time, tariff levels being discussed were far lower than what was unveiled last week.



Trump’s tariff policy has created “many uncertainties,” including its impact on global capital flows and the dollar, the impact to corporate profits and the response from trading partners, Dimon said.



“The quicker this issue is resolved, the better because some of the negative effects increase cumulatively over time and would be hard to reverse,” he said. “In the short run, I see this as one large additional straw on the camel’s back.”



<h2 class="wp-block-heading" id="h-not-so-sure"><a></a>‘Not so sure’</h2>



While the U.S. economy has performed well for the past few years, helped by nearly $11 trillion in government borrowing and spending, it was “already weakening” in recent weeks, even before Trump’s tariff announcement, according to Dimon. Inflation is likely to be stickier than many anticipate, meaning that interest rates could remain elevated even as the economy slows, he added.



“The economy is facing considerable turbulence (including geopolitics), with the potential positives of tax reform and deregulation and the potential negatives of tariffs and ‘trade wars,’ ongoing sticky inflation, high fiscal deficits and still rather high asset prices and volatility,” Dimon said.



Dimon also struck a somewhat ominous note considering how much U.S. stocks have already fallen from their recent highs. According to the JPMorgan CEO, both stocks and credit spreads were still potentially too optimistic.



“Markets still seem to be pricing assets with the assumption that we will continue to have a fairly soft landing,” Dimon said. “I am not so sure.”



This story is developing. Please check back for updates.

JPMorgan Chase & Co. Chief Executive Officer Jamie Dimon Interview

JPMorgan CEO Jamie Dimon says Trump tariffs will boost inflation, slow an already weakening U.S. economy

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-820x461.jpeg" alt="" class="wp-image-606703" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs.jpeg 1920w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Dado Ruvic | Reuters</figcaption></figure>



U.S. President Donald Trump’s tariffs and subsequent actions by other nations have cast a shadow over investors’ portfolios. Markets largely fell all around the world following the announcements, and the sell-off has extended into Monday.  Trump and his administration has been defiant, with the U.S. president saying “it won’t be easy” and urging Americans to “hang tough” in a Truth Social post late Friday.  Over the weekend, the European Union was reported to also be readying tariffs, targeting up to $28 billion of U.S. imports, marking the latest escalation in this conflict. China and Canada had also announced retaliatory measures last week.  With such market losses, a predicted rise in consumer prices, and an increased risk of a recession from tariffs, it is admittedly hard to see what “victory” looks like for Trump who said in 2018 that “trade wars are good, and easy to win!”



— Lim Hui Jie



<h2 class="wp-block-heading" id="h-what-you-need-to-know-today"><a></a>What you need to know today</h2>



Markets set to extend losses U.S. stock futures dropped on Monday morning, portending a third day of losses after a two-day historic stock market rout. Dow Jones Industrial average futures fell 1,033 points, or 2.68%, pointing to another brutal session ahead on Monday. S&amp;P 500 futures shed 3.34%. Nasdaq-100 futures lost 4.26% as investors continued to shed their one-time tech winners to raise cash. Asia-Pacific markets extended their sell-off on Monday as fears over a global trade war fueled a risk-off mood. Hong Kong markets led losses in the region, with the Hang Seng Index declining 10.37%. Mainland China’s CSI 300 fell 6.31%.



Japanese yen and Swiss franc top hedges against tariffs U.S. President Donald Trump’s fresh of swathe reciprocal tariffs has pushed investors toward safe haven assets. The Japanese yen, Swiss franc, bonds, as well as a few other “exotic” assets, have emerged as some of their top hedges.



Crypto joins market rout Bitcoin fell below the $79,000 level Sunday as investors braced for more financial market volatility. The cryptocurrency is down 15% in 2025 and, absent a crypto-specific catalyst, is expected to continue moving in tandem with equities as global recession fears overshadow any regulatory tailwinds crypto was expected to benefit from this year.



‘Tariffs are coming’: Commerce Secretary Lutnick Commerce Secretary Howard Lutnick said the White House will not postpone the April 9 start date for reciprocal tariffs. Speaking to CBS’s “Face the Nation” Sunday, Lutnick said, “they are definitely going to stay in place for days and weeks,” adding “the president needs to reset global trade. Everybody has a trade surplus and we have a trade deficit.” 



Bessent dismisses recession fears  Treasury Secretary Scott Bessent on Sunday dismissed concerns Americans might be having about a potential impending recession and the status of their retirement plans, saying that President Donald Trump and his administration are “building the long-term economic fundamentals for prosperity.” Speaking to NBC News’ “Meet the Press,” Bessent called it a “false narrative” that Americans who are close to retiring may be reticent to do so after their retirement savings may have dropped this week due to the stock market downturn. “In fact, most Americans don’t have everything in the market,” Bessent added.



Berkshire Hathaway weathers market rout Warren Buffett’s Berkshire Hathaway fared better than the S&amp;P 500 in a brutal week as investors embraced the safety of a cash-rich conglomerate, seeing softer losses compared to the broad market index. Domestically-oriented Berkshire, which also owns large manufacturing, energy and retail businesses, is still up about 8% this year.



China says ‘market has spoken’ after Trump tariffs spark global stocks rout



China’s Foreign Ministry on Saturday said “the market has spoken” following the U.S. imposition of sweeping new tariffs and called for the White House to defuse the escalating trade war through “equal-footed consultation.“ This comes as U.S. markets fell sharply for a second consecutive day on Friday, with all three major indexes dropping by more than 5% as part of a global rout.



The market turmoil was exacerbated on Friday when China’s Finance Ministry announced it would impose a 34% tariff on all goods imported from the U.S. starting on April 10.

International

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

Global trade outlook has ‘deteriorated sharply’ amid Trump tariff uncertainty, WTO warns

UK inflation slows to cooler-than-expected 2.6% in March

Consumers don’t agree with the White House that the economy will be fine

More than 60% of CEOs expect a recession in the next 6 months as tariff turmoil grows, survey says

China urges Trump to correct mistakes and heed ‘rational voices’ on reciprocal tariffs

China strikes back with 125% tariffs on U.S. goods as trade war intensifies

European Union to put countermeasures to U.S. tariffs on hold for 90 days

Trump tariffs: World reacts as White House issues temporary tariff reprieve; China’s duties kick in

Trump temporarily drops tariffs to 10% for most countries, hits China harder with 125%

European Union approves first set of retaliatory tariffs on U.S. imports

Trump’s tariff plan is throwing into disarray companies’ efforts to diversify out of China

China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

The Trump administration wants more than 0% tariffs

White House denies that Trump is considering 90-day tariff pause

JPMorgan CEO Jamie Dimon says Trump tariffs will boost inflation, slow an already weakening U.S. economy

Trump tariffs spark trade war, decimating stocks

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International

China targets U.S. services and other areas as it decries ‘meaningless’ tariff hikes on goods

Global trade outlook has ‘deteriorated sharply’ amid Trump tariff uncertainty, WTO warns

UK inflation slows to cooler-than-expected 2.6% in March

Consumers don’t agree with the White House that the economy will be fine

More than 60% of CEOs expect a recession in the next 6 months as tariff turmoil grows, survey says

China urges Trump to correct mistakes and heed ‘rational voices’ on reciprocal tariffs

China strikes back with 125% tariffs on U.S. goods as trade war intensifies

European Union to put countermeasures to U.S. tariffs on hold for 90 days

Trump tariffs: World reacts as White House issues temporary tariff reprieve; China’s duties kick in

Trump temporarily drops tariffs to 10% for most countries, hits China harder with 125%

European Union approves first set of retaliatory tariffs on U.S. imports

Trump’s tariff plan is throwing into disarray companies’ efforts to diversify out of China

China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

The Trump administration wants more than 0% tariffs

White House denies that Trump is considering 90-day tariff pause

JPMorgan CEO Jamie Dimon says Trump tariffs will boost inflation, slow an already weakening U.S. economy

Trump tariffs spark trade war, decimating stocks

News Tips

Advertise With Us

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