<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%

Why oil companies may not love Trump’s ‘drill

Why oil companies may not love Trump’s ‘drill, baby, drill’ agenda

<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

Perceived safety is critical for wide driverless car adoption: Pony.ai CEO

<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

Pony.ai CEO on the future of autonomous driving and AI

<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="461" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-820x461.jpeg" alt="" class="wp-image-607508" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-820x461.jpeg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-300x169.jpeg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-160x90.jpeg 160w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-768x432.jpeg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump-1536x864.jpeg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/108128682-17441449612025-04-08t204125z_1005197937_rc2wtda2i2uw_rtrmadp_0_usa-trump.jpeg 1600w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">Photo: via CNBC</figcaption></figure>



<h2 class="wp-block-heading" id="h-ship-building-to-be-key-negotiating-tool-in-south-korea-u-s-tariff-talks">Ship-building to be key negotiating tool in South Korea-U.S. tariff talks</h2>



Major U.S. ally South Korea, which was slapped with a 25% rate under the latest Trump tariff regime, says ship-building could be a key advantage in negotiations with the White House.



“Since President Trump and the Trump administration are showing great interest in shipbuilding cooperation, we believe that the shipbuilding sector will be a very important negotiating card for us,” South Korea’s Minister of Trade, Industry, and Energy Ahn Duk-geun said on Wednesday, according to Reuters.



This comes after U.S. President Donald Trump and South Korea’s interim leader Han Duck-soo held talks on Tuesday to discuss tariffs.&nbsp;Several nations are looking to negotiate with the U.S to mitigate the effect of the U.S. protectionist trade policy.



—&nbsp;Lily Meckel



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



<h2 class="wp-block-heading" id="h-india-s-central-bank-governor-signals-growth-concerns-amid-u-s-tariffs">India’s central bank governor signals growth concerns amid U.S. tariffs</h2>



Speaking after the Reserve Bank of India’s decision to cut interest rates, the central bank’s Governor Sanjay Malhotra said he was “concerned about growth” in India due to the impact of U.S. tariffs.



He pointed out India is better placed than other countries to tackle the tariff-led&nbsp;hikes due to its&nbsp;narrower&nbsp;trade surplus with the U.S. and&nbsp;the&nbsp;lower “reciprocal” tariff rate&nbsp;it received from Washington, compared with other nations.



“My understanding is that the impact of these tariffs on India vis-à-vis some of the other countries [such as] China and some of the other countries,&nbsp;[is]&nbsp;much less,” Malhotra said.



— Lim Hui Jie



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



<h2 class="wp-block-heading" id="h-deutsche-bank-downgrades-swathe-of-european-firms-in-tariff-firing-line">Deutsche Bank downgrades swathe of European firms in tariff firing line</h2>



<figure class="wp-block-image"><img decoding="async" src="https://image.cnbcfm.com/api/v1/image/108094081-1738161352098-gettyimages-2020858462-FRANCE_PARIS.jpeg?v=1744184433&amp;w=1858&amp;h=1045&amp;vtcrop=y" alt="The Louis Vuitton boutique in the Place Vendome luxury retail area in central Paris, France, on Tuesday, Feb. 21, 2024."/><figcaption class="wp-element-caption">The Louis Vuitton boutique in the Place Vendome luxury retail area in central Paris, France, on Tuesday, Feb. 21, 2024. Andrea Mantovani | Bloomberg | Getty Images</figcaption></figure>



In a note to clients on Wednesday, strategists at Deutsche Bank downwardly revised target prices for 19 companies.



Many of the companies were in the European luxury and mining sectors. Gucci owner Kering’s target price was slashed by 39.7%, while British luxury giant Burberry’s target price was lowered by 35.7%. French conglomerate LVMH’s target price was cut by 16.5%.



In the mining sector, BHP, Anglo American, Glencore and Rio Tinto were among those with downgraded target prices.



“The direct impact of the tariffs is not a huge headwind in our view with … price increases able to offset the profit impact,” Deutsche Bank’s team said in their note. “However, weaker global stock markets and the broader economic uncertainty will weigh on confidence and we see this further postponing a recovery in luxury demand.”



On mining, Deutsche Bank advised investors to “seek selective exposure” in the coming six to 12 months.



“The&nbsp;reciprocal tariffs announced last week have driven the sharpest sell-off in Mining since 2020,” its strategists said. “Our base case now assumes global growth verging on recession over the next two quarters … While there is still the risk of further downside in the near term, mining valuations are approaching trough levels, [and] debt levels are low.”



—&nbsp;Chloe Taylor

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Trump’s reciprocal tariffs plan kicks in, China to see net total tariffs of 104%

When Will Trump’s Tariff’s End?

<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

Why More NFL

Why More NFL, MLB And NBA Teams Are Not Publicly Traded

<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.

108126913-17437914272025-04-04t165538z_1655625369_rc24rdaletk4_rtrmadp_0_usa-trump-tariffs

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

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

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