<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.”

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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="3788" height="2479" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/QF6LDDNUPJJ4RBWGOZMZII2Q2A.avif" alt="" class="wp-image-609327"/><figcaption class="wp-element-caption">Former Deputy Finance Minister Mcebisi Jonas gestures ahead of the Judicial Commission of Inquiry probing state capture in Johannesburg, South Africa August 24, 2018. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 14 (Reuters)&nbsp;&#8211;&nbsp;South African President Cyril Ramaphosa on Monday announced former deputy&nbsp;finance minister&nbsp;Mcebisi Jonas as a special envoy to the United States.



Jonas is currently independent non-executive chairman of telecommunications company MTN Group, a role he will continue to hold alongside the envoy position.



&#8220;Jonas is entrusted with the responsibility to advance South Africa&#8217;s diplomatic, trade and bilateral priorities. He will lead negotiations, foster strategic partnerships and engage with U.S. government officials and private-sector leaders to promote our nation&#8217;s interests,&#8221; Ramaphosa&#8217;s office said in a statement.



Relations between South Africa and the U.S. have soured badly since U.S. President Donald Trump&#8217;s return to the White House in January.



The U.S. has cut financial aid to South Africa, citing disapproval of its land reform policies and its genocide case against Washington&#8217;s ally Israel at the International Court of Justice, and expelled South Africa&#8217;s ambassador last month.



Jonas was South Africa&#8217;s deputy finance minister between 2014 and 2017.



An outspoken critic of corruption during his time in government, he featured prominently in a judicial inquiry into graft and influence-peddling during former president Jacob Zuma&#8217;s leadership.



Jonas told the inquiry he was offered the finance minister job as well as large sums of money by the Gupta brothers, friends of Zuma. Zuma and the Guptas denied wrongdoing.



(Reporting by Bhargav Acharya and Tannur Anders; Editing by Alexander Winning)

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South African president names Jonas special envoy to US

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="573" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-820x573.jpg" alt="" class="wp-image-609274" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-820x573.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-300x210.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-129x90.jpg 129w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-768x537.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-1536x1074.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/ZGWQ5NVZQJPYVNZ6MYTGC7URE4-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African President Cyril Ramaphosa answers lawmakers&#8217; questions at the parliament in Cape Town, South Africa, March 11, 2025. REUTERS/Esa Alexander South African President Cyril Ramaphosa answers lawmakers&#8217; questions at the parliament in Cape Town, South Africa, March 11, 2025. REUTERS/Esa Alexander</figcaption></figure>



JOHANNESBURG, April 14 (Reuters)&nbsp;&#8211;&nbsp;For South African beverage company owner, Ndumiso Madlala, the impending value-added tax hike could spell trouble for his small-scale business that makes alcoholic ginger beer and non-alcoholic drinks.



The National Treasury plans to raise VAT by 1-percentage-point over two years from May 1, as part of measures to bolster government revenue. Currently, VAT is set at 15%.



For Madlala, the increase could force him to raise prices or lower margins, both undesirable options for a business like his in a tough economic environment.



&#8220;For us as small guys, you first hit a problem of being competitive on price,&#8221; Madlala told Reuters. &#8220;Big companies can just switch prices at any time, they can reduce their price to drive the volume up. For us, that&#8217;s something that we can&#8217;t do.&#8221;



The VAT increase comes as the South African economy faces several headwinds including a slow recovery following years of unstable electricity supply, domestic political tensions and global trade wars.



Until recently, power cuts had been a drag on South Africa&#8217;s economic growth for more than a decade, escalating costs for businesses as they resorted to alternative energy sources like diesel-run generators.



On top of that, businesses and households are grappling with other rising costs, such as increases in electricity and water tariffs.



While the treasury intends to expand the basket of zero-rated VAT items to shield low-income households from the full impact, some economists argue this may not be enough as the wider population &#8211; including the middle class &#8211; feels the pinch of rising costs.



&#8220;VAT (hikes) are never a good idea… the ones that are going to be hard hit by any increases in VAT are the middle class to the poor,&#8221; said economist Nomahlubi Jakuja.



&#8220;South Africa already has high levels of unemployment&#8230; and then adding an additional tax on daily goods, it decreases the purchasing power of ordinary South Africans,&#8221; she added.



The VAT hike, part of revenue measures in the 2025 budget, has also deepened the schism between the African National Congress and the Democratic Alliance &#8211; partners in government &#8211; threatening to sink South Africa&#8217;s first attempt at coalition rule in its 30-year democratic era.



The pro-business DA, the junior partner in the coalition, voted against the budget and went to court to try to block it.



Despite the uncertainty, Madlala remains optimistic, banking on his business&#8217;s reputation and his popular ginger products.



&#8220;My comfort is the brand that I own, which is Dragonfire Ginger. It&#8217;s one of its kind,&#8221; he said. &#8220;So we find that our loyal base of customers comes back for our products all the time.&#8221;



(Additional reporting by Shafiek Tassiem in Cape Town; Editing by Olivia Kumwenda-Mtambo and Ros Russell)

South African President Cyril Ramaphosa answers lawmakers’ questions at the parliament, in Cape Town

South African businesses on edge as VAT hike looms

<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

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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="547" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4-820x547.jpg" alt="" class="wp-image-608265" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/5KGMLDAKZZPMZBFLD6IPJ2HQA4.jpg 1200w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">A cargo ship sits outside of the Port of Elizabeth marine terminal seen from Bayonne, New Jersey, U.S., April 9 2025. REUTERS/Shannon Stapleton/File Photo</figcaption></figure>



GENEVA, April 11 (Reuters) &#8211; Sweeping tariffs on imports imposed by U.S. President Donald Trump and countermeasures could have a &#8220;catastrophic&#8221; impact on developing countries, hitting even harder than foreign aid cuts, the director of the United Nations trade agency said on Friday.



Global trade could shrink by 3-7% and global gross domestic product by 0.7%, with developing countries the worst affected, the International Trade Centre said.



&#8220;It is huge,&#8221; Pamela Coke-Hamilton, executive director of the International Trade Centre, told Reuters. &#8220;If this escalation between China and the U.S. continues it will result in an 80% reduction in trade between the countries, and the ripple effect of that across the board can be catastrophic.&#8221;



Global markets remained in turmoil on Friday. Trump this week announced a 90-day tariff pause on dozens of countries but hiked the duties on Chinese goods to an effective rate of 145%. On Friday, Beijing increased its tariffs on U.S. imports to 125% in a trade war that threatens to up-end global supply chains.



&#8220;Tariffs could have a much more harmful impact than the removal of foreign aid,&#8221; Coke-Hamilton said, warning that developing economies risk sliding back on the economic gains they made in recent years.



Some of the world&#8217;s least developed countries, including Lesotho, Cambodia, Laos, Madagascar and Myanmar, may look to improve regional trade relations to absorb the loss of some of the U.S. market for their exports, the ITC&nbsp;said.



Bangladesh, the world’s second largest apparel exporter, could lose $3.3 billion in annual exports to the U.S. by 2029 if the U.S. tariff of 37% stays after the pause, ITC data found. It may look to European markets as an alternative as they still hold growth potential, Coke-Hamilton suggested.



The projections by the International Trade Centre, the joint agency of the World Trade Organization and the United Nations, which seeks to help countries develop through exports, are based on data it gathered before Trump&#8217;s 90-day pause and subsequent hikes on duties on Chinese imports.



(Reporting by Olivia Le Poidevin; Editing by Friederike Heine, Ludwig Burger and Frances Kerry)

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Impact of tariffs on developing countries could be ‘catastrophic’, says UN trade agency

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="4987" height="3325" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/AVUKD6NDQRNW5H4WASP4IO5AFM.avif" alt="" class="wp-image-608214"/><figcaption class="wp-element-caption">Chinese Commerce Minister Wang Wentao attends a meeting with global business leaders at the Great Hall of the People in Beijing, China, March 28, 2025. REUTERS/Florence Lo/File Photo</figcaption></figure>



BEIJING, April 11 (Reuters)&nbsp;&#8211;&nbsp;China&#8217;s Commerce Minister Wang Wentao had discussions with his Saudi Arabian and South African counterparts to exchange views on responding to the United States&#8217; &#8220;reciprocal tariffs&#8221;, the Chinese ministry said on Friday.



The conversations took place over separate video calls on Thursday in which China discussed strengthening bilateral economic and trade cooperation with Saudi Arabia and South Africa.



Wang also spoke to Saudi Arabia&#8217;s Commerce Minister Majid bin Abdullah al-Qasabi about enhancing cooperation with countries within the Gulf Cooperation Council, while G20 and BRICS&#8217; roles were brought up in his conversation with South Africa&#8217;s Parks Tau.



The Chinese commerce ministry&#8217;s statements did not elaborate on the discussions.



(Reporting by Liz Lee, Yukun Zhang and Shanghai newsroom; Editing by Jacqueline Wong)

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China speaks with Saudi Arabia, South Africa about response to US tariffs

<figure class="wp-block-image size-large"><img loading="lazy" decoding="async" width="820" height="593" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-820x593.jpg" alt="" class="wp-image-607969" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-820x593.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-300x217.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-124x90.jpg 124w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-768x556.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-1536x1111.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2025/04/GMDZRSA6BRKDPKJ2BPS5RJ25YA-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London,Britain, March 3, 2016. REUTERS/Reinhard Krause</figcaption></figure>



JOHANNESBURG, April 10 (Reuters)&nbsp;&#8211;&nbsp;Pressure from U.S. aid freezes and global trade tension is unlikely to result in widescale credit downgrades in Africa, Fitch Ratings said on Thursday.



The impact of tariffs on Africa is limited, Fitch said, due to the region&#8217;s export composition and weaker integration into global supply chains compared to a region such as Asia.



But Sub-Saharan Africa has been one of the largest recipients of funds disbursed by the United States Agency for International Development (USAID) which was frozen by executive order of U.S. President Donald Trump.



Nonetheless, South Africa, Namibia and Ivory Coast remain relatively shielded from recent events, Paul Gamble, head of Middle East/Africa in Fitch’s Sovereign Ratings Group, said.



And Nigeria and the Seychelles both hold positive credit outlooks from Fitch Ratings &#8211; an indication that a rating is expected to be raised in the future &#8211; thanks to ongoing reforms, he told a webinar.



&#8220;The reforms that we&#8217;ve seen really put the region in a better position to absorb some of these shocks,&#8221; Gamble.



&#8220;The impact for the ratings looks manageable.&#8221;



However, the freeze on U.S. foreign aid was not without negative consequences, Fitch said.



Some of the poorest nations were at risk for having projects come to an abrupt end and would see fiscal stability come under pressure. Ethiopia received U.S. assistance worth around 80% of its foreign exchange reserves, with Mozambique, Uganda, and Lesotho also seen at risk.



&#8220;African-owned multilateral banks might become more important institutions in this shifting landscape,&#8221; Arnaud Louis, senior director at Fitch, said on the webinar.



Gamble also pointed to Washington&#8217;s pivot to strategic investments in minerals in Africa as potentially becoming a new sphere for the trade tensions as it could intensify competition on the continent with China.



&#8220;Africa will be a playing field for U.S.-China tensions,&#8221; said Gamble. The U.S. interest is becoming &#8220;more opportunistic, transactional&#8221; focusing on access to minerals and rare earths rather than broad-based development, he said.



The Trump administration has said it wants to invest billions of dollars in the Democratic Republic of Congo. Congo&#8217;s minerals, which are used in mobile phones and electric cars, are currently dominated by China and its mining companies.



(Reporting by Colleen Goko; Editing by Alison Williams)

The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London

African credit ratings can absorb aid cuts and trade strains, Fitch says

<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

<figure class="wp-block-image size-full"><img loading="lazy" decoding="async" width="2048" height="1365" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg" alt="" class="wp-image-451705" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-scaled.jpg 2048w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-300x200.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-820x547.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-135x90.jpg 135w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-768x512.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/01/A6RAHQABDRIGTJNVXZ2UH7TGEQ-1536x1024.jpg 1536w" sizes="auto, (max-width: 2048px) 100vw, 2048px" /><figcaption class="wp-element-caption">The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast, January 30, 2020.REUTERS/Luc Gnago</figcaption></figure>



The United Kingdom says it looks forward to the election of a new leader at the African Development Bank (AfDB) as Akinwumi Adesina’s 10-year tenure ends.



However a spokesperson didn’t say if the country had a particular preference for any of the five candidates vying to lead the Abidjan, Cote D’Ivoire headquartered AfDB, Africa’s biggest development finance bank.



“The selection of the President is important to the Bank’s success and therefore is of key interest to the UK,’’ a spokesperson said in an emailed response to CNBC Africa. “Ultimately, we&nbsp;believe that the selection of this role is a decision for the African region to make collectively. We look forward to continuing to work with the Bank and the next President when their tenure starts next September.”



Ex-World Bank senior official Samuel Maimbo of Zambia is taking on Senegal’s Amadou Hott, ex-special envoy of the bank’s Alliance for Green Infrastructure in Africa, South Africa’s Swazi Tshabalala, a former Vice President, Mauritania’s Sidi Ould Tah, former Director General of the Arab Bank for Economic Development in Africa and Chad’s former Finance Minister Mahamat Tolli.



To win the presidency, a candidate must get a majority of votes from both the African shareholders who own 60 percent of the bank, and non-African shareholders, who are referred to as non-regional members, who control 40%.



Adesina, a former Nigerian agriculture minister, championed Africa’s agriculture as a unique investment opportunity during his term. He also focussed on providing power to the more than 600 million Africans still without electricity, launching an $8 billion project together with the World Bank in January.



The AfDB, the only African financial institution rated triple A by Moody’s, Standard &amp; Poor’s and Fitch, will select the new leader next month.



Its top five shareholders are Nigeria with 8.2%, followed by the United States at 6.6%, Egypt has 5.6% while Japan owns 5.5% and South Africa holds 5.1%.

The headquarters of the African Development Bank (AfDB) are pictured in Abidjan, Ivory Coast

United Kingdom Looks Forward to Working with Next AfDB President

<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-full"><img loading="lazy" decoding="async" width="640" height="463" src="https://cms.cnbcafrica.com/wp-content/uploads/2025/02/2PLENK7UEVP6LHO27XU5VACMUU.avif" alt="" class="wp-image-590509"/><figcaption class="wp-element-caption">South African Rand coins are seen in this illustration picture taken October 30, 2020. REUTERS/Mike Hutchings/Illustration/File Photo</figcaption></figure>



JOHANNESBURG, April 10 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand firmed in early trade on Thursday, recouping some of its recent loss as investors took a breather after U.S. President Donald Trump announced an immediate 90-day tariff pause for many countries.



At 0631 GMT, the rand traded at 19.25 against the U.S. dollar, about 0.4% stronger than its previous close.



The local currency hit a record low of 19.9325 on Wednesday, the day Trump&#8217;s country-specific import tariffs kicked in.



Trump said he would temporarily lower tariffs imposed on dozens of countries including South Africa but kept a 10% blanket duty on almost all U.S. imports.



In addition to Trump&#8217;s tariffs, local politics have also weighed on the risk-sensitive rand, after a contentious budget vote last week threatened the future of the ruling coalition.



The second-biggest party in the coalition, the pro-business Democratic Alliance, voted against key legislation in the budget and challenged the budget process in court.



South Africa-focused investors on Thursday will look out for February domestic manufacturing data due at 1100 GMT for clues on the health of the economy.



Benchmark 2030 government bonds were stronger in early deals, with the yield down 15.5 basis points at 9.15%.



(Reporting by Sfundo Parakozov; Editing by Bhargav Acharya and Christopher Cushing)

2PLENK7UEVP6LHO27XU5VACMUU

South African rand regains some ground after US pauses tariffs

<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="507" src="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg" alt="" class="wp-image-533970" srcset="https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-820x507.jpg 820w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-300x186.jpg 300w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-145x90.jpg 145w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-768x475.jpg 768w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-1536x950.jpg 1536w, https://cms.cnbcafrica.com/wp-content/uploads/2024/09/RAND-DOLLAR-scaled.jpg 2048w" sizes="auto, (max-width: 820px) 100vw, 820px" /><figcaption class="wp-element-caption">South African bank notes featuring images of former South African President Nelson Mandela (R) are displayed next to the American dollar notes in this photo illustration in Johannesburg August 13 2014. REUTERS/Siphiwe Sibeko/File Photo</figcaption></figure>



JOHANNESBURG, April 9 (Reuters)&nbsp;&#8211;&nbsp;South Africa&#8217;s rand touched a new all-time low against the U.S. dollar on Wednesday, under pressure from global risk aversion over U.S. President Donald Trump&#8217;s tariffs and uncertainty about the future of the local coalition government.



The rand fell as low as 19.9325 to the dollar, weaker than the previous record low of 19.9075 struck in June 2023, data from the London Stock Exchange Group showed.



This is a developing story&#8230;



(Reporting by Tannur Anders; Editing by Alexander Winning)

Photo illustration of South African bank notes displayed next to the American dollar notes in Johannesburg

South Africa’s rand touches new record low against dollar

<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.

108126463-1743765627495-gettyimages-2198947496-_ha_0099_eetz0vnk

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="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



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<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



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<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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