By GB News (World News) | Created at 2025-04-03 06:24:39 | Updated at 2025-04-04 02:29:16
20 hours ago
Asian markets dived overnight amid concerns about President Donald Trump's new US tariffs as fears over a global recession intensified.
Stock markets in mainland China have just opened with the Shanghai Composite index trading broadly flat, while Hong Kong's Hang Seng is down by 1.2 per cent.
Meanwhile Nikkei 225 in Tokyo is down by 2.9 per cent, the Kospi in South Korea is down by 1.7 per cent and Australia's ASX 200 is around 1.2 per cent lower.
The dollar was swept to a six-month low, falling along with US bond yields after Trump imposed tariffs that raise effective import taxes to the highest levels in a century.
Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington
Reuters
Stock indexes at the Lujiazui financial district in Shanghai, China
Reuters
Head of US economic research at Fitch Ratings Olu Sonola said: "This is a game-changer, not only for the US economy but for the global economy.
"Many countries will likely end up in a recession. You can throw most forecasts out the door if this tariff rate stays on for an extended period of time."
China, the world's second largest economy, was faced with a fresh 34 per cent tariff on top of the 20 per cent Trump previously imposed, as Beijing vowed countermeasures, seemingly ignoring a warning by US Treasury Chief Scott Bessent that such moves would lead to escalation.
The European Union was not spared, facing a 20 per cent tariff rate. Ursula von der Leyen described the tariffs as a major blow to the world economy and said the 27-member bloc was prepared to respond with countermeasures if talks with Washington failed.
Trump's tariff rate is the highest since the Second World War
GB News/Reuters
European Commission President Ursula von der Leyen said the bloc was 'prepared to respond'
Reuters
