Trump tariffs live updates: Markets plummet across Asia as US president sparks fears of global trade war

US treasury secretary Scott Bessent has warned trading partners to not retaliate against Donald Trump’s sweeping tariffs that could send the world economy into a tizzy.

“My advice to every country right now is, do not retaliate,” Mr Bessent told Fox News.

“Sit back, take it in, let’s see how it goes. Because if you retaliate, there will be escalation,” he warned. “If you don’t retaliate, this is the high watermark.

“China this morning urged the US to roll back the tariffs and properly resolve differences with trading partners through equal dialogue.

China firmly opposes this and will resolutely take countermeasures to safeguard its rights and interests, the commerce ministry said.

Japan has reacted strongly to US president Donald Trump’s sweeping 24 per cent tariffs on imports, calling it “extremely regrettable”.

Trade minister Yoji Muto told reporters today that he has “conveyed that the unilateral tariff measures taken by the US are extremely regrettable, and I have again strongly urged [Washington] not to apply them to Japan”.

He said he spoke with the US commerce secretary Howard Lutnick before Mr Trump’s announcement.

Japanese prime minister Shigeru Ishiba said Tokyo – one of the strongest US allies – was “making the largest amount of investment to the US”.

“So we wonder if it makes sense for (Washington) to apply uniform tariffs to all countries,” he said.

“We need to consider what’s best for Japan’s national interest. We’re putting all options on the table in considering the most effective response.”

President Donald Trump imposed tariffs on uninhabited islands and a U.S. military base on Wednesday as he announced his widespread levies.

Trump imposed tariffs on the uninhabited Heard and McDonald Islands in the sub-Antarctic Indian Ocean, Axios noted.

The mostly barren UNESCO World Heritage site was featured on Trump’s list of areas that now face a minimum of 10 percent tariffs on U.S. imports, along with mainland Australia.

The EU is preparing countermeasures after US president Donald Trump hit dozens of nations with “reciprocal tariffs” in what is seen as a “major blow” to the world economy.

“We are already finalising the first package of countermeasures in response to tariffs on steel,” EU Commission chief Ursula von der Leyen in a statement read out in Uzbekistan.

“And we’re now preparing for further countermeasures to protect our interests and our businesses if negotiations fail.” The EU is facing a 20 per cent tariff hike.

Stock markets across Asia fell on Thursday morning at the opening after US president Donald Trump announced sweeping new tariffs on imports.

Tokyo’s Nikkei 225 dropped as much as 4 per cent in early trade before partially recovering to close 2.9 per cent lower at 34,675.97 on Thursday. South Korea’s Kospi slipped 1.5 per cent, while Hong Kong’s Hang Seng fell 1.4 per cent.

The Shanghai Composite dipped slightly by less than 0.1 per cent, and Australia’s ASX 200 was down 1.3 per cent.

US president Donald Trump announced a 26 per cent tariff on India despite New Delhi’s aggressive efforts to avoid his wrath.

Mr Trump unveiled the tariffs late on Wednesday, calling them “discounted” and “reciprocal”.

They include a universal rate of 10 per cent for all countries and territories, rising higher for those he deems as charging too much on American goods.

“The United States charges other countries only a 2.4 per cent tariff on motorcycles. Meanwhile, Thailand and others are charging much higher rates, like 60 per cent.

India charges 70 per cent, Vietnam charges 75 per cent, and others charge even higher rates,” he said yesterday.

India had sought to avoid a trade war with its biggest trading partner by already imposing pre-emptive tariff cuts before prime minister Narendra Modi’s recent visit to the White House.

Two-way trade exceeded $118bn in fiscal 2023-2024, with India posting a surplus of $32bn.

“India, very, very tough. Very, very tough. The prime minister just left. He’s a great friend of mine, but I said, ‘You’re a friend of mine, but you’re not treating us right,” Mr Trump said.

“They charge us 52 per cent. You have to understand, we charge them almost nothing for years and years and decades, and it was only seven years ago, when I came in, that we started with China’,” he added.

The Indian commerce ministry has already reduced levies on heavyweight bikes with engines above 1,600cc from 50 per cent to 30 per cent and on smaller models to 40 per cent, complying with the American president’s longstanding demand.

China’s commerce ministry has urged the US to immediately cancel unilateral tariff measures and properly resolve differences with trading partners through equal dialogue.

“Many trading partners have expressed strong dissatisfaction and clear opposition,” the ministry said in a statement this morning. China firmly opposes this and will resolutely take countermeasures to safeguard its rights and interests, it said.

President Donald Trump announced yesterday that he would impose a 10 per cent baseline tariff on all imports to the US and higher duties on dozens of other countries. The tariffs will take effect on 9 April.

Chinese imports will be hit with a 34 per cent tariff, on top of the 20 per cent he previously imposed, bringing the total new levy to 54 per cent.

The prime minister will face some brickbats for failing to win a carve-out from tariffs with what many see as a fawning approach to Donald Trump, writes David Maddox, The Independent’s political editor.

But as the world digests the stunning news of reciprocal tariffs unleashed around the globe, Sir Keir Starmer can take some satisfaction from his work and have hope that for the UK at least there is a quick resolution to this nightmare.

As Downing Street was quick to point out, the 10 per cent minimum tariff being imposed on the UK is much better than others, most notably the EU. This literally is the difference between saving and losing many thousands of jobs.

There have been positive noises from Downing Street that despite issues around free speech concerns from the US, the UK and America are close to a trade deal which would even see these tariffs go away.

There is though a very much wait-and-see on that.

So while Starmer and his ministers can take some satisfaction now from their efforts there is still a lot of work ahead and high stakes. These tariffs wipe out the chancellor Rachel Reeves’ economic headroom.

A failure to get rid of them will leave the UK government in a lot of trouble.

At least one Brexiteer has suggested European manufacturers move their businesses to the UK to benefit from the lower 10% tariff than the 20% in the EU.

The head of the British Chambers of Commerce says the new tariffs will wreak havoc on business communities globally, driving up prices, but that retaliatory tariffs should be only a last resort.

Shevaun Haviland, director general, said: “The Government has kept a cool head so far and must continue to negotiate. This is a marathon not a sprint, and getting the best deal for the UK is what matters most.

“But no-one will escape the fallout from these decisions, there will be an increased risk of trade diversion, and it will wreak havoc on business communities across the world. Orders will drop, prices will rise, and global economic demand will be weaker as a result. This is a lose-lose situation for everyone.

“So, it is vitally important that the government does not give up on negotiations. Tariffs can be lifted at any time and the US has signalled its willingness to do some form of deal with us.

“The UK is not without influence, our bilateral trade with the US is worth £300 billion, we have £500 billion invested there and it has £700 billion tied up in our economy. There is a high-level of co-dependency and we are speaking to businesses across the UK on options for Government to consider.”

She said decisions on taxes would need to be taken very carefully, and the government should keep everything on the table during talks, but retaliatory tariffs should only be a last resort.

“Many firms, especially SMEs, will now be facing difficult decisions and we urge government to do all it can to provide practical support to them.”