Trump's 'Liberation Day' Tariffs Roil Markets As China Slams 'Typical Unilateral Bullying:' Asian Markets Plunge

Global markets reeled on Thursday after President Donald Trump unveiled sweeping new tariffs on imports. China immediately threatened countermeasures, and Asian markets dropped sharply on trade war fears.

What Happened: Trump announced tariffs on all Chinese imports on Wednesday as part of his “Liberation Day” reset of American trade policy, calling Apr. 2 “the day American industry was reborn” and a “Declaration of Economic Independence.”

“China firmly opposes this and will resolutely take countermeasures to safeguard its own rights and interests,” a Chinese Commerce Ministry spokesperson said on Thursday, according to CNN. The spokesperson characterized the move as “typical unilateral bullying” and urged the U.S. to “immediately cancel its unilateral tariff measures.”

Asian markets tumbled in response, with Japan’s Nikkei 225 plunging 2.95% to 34,673.69. Hong Kong’s Hang Seng dropped 1.66% to 22,818.18, while South Korea’s KOSPI fell 1.04% to 2,479.80. Mainland China’s SSE Composite slid 0.51% to 3,333.10. India’s Nifty 50 declined 0.58% to 23,196.45.

The tariffs, which take effect Apr. 9, establish a “reciprocal” structure set at half the rate Trump claims trading partners impose on American goods. China faces duties of 34%, while Vietnam at 46%, and Sri Lanka at 44%, face the steepest increases.

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Why It Matters: European leaders joined the chorus of criticism. Italy’s Prime Minister Giorgia Meloni, typically a Trump ally, called the 20% tariff rate imposed on the European Union “wrong,” while Ireland’s Taoiseach Micheál Martin deemed the decision “deeply regrettable,” according to the BBC.

India’s commerce ministry is analyzing the impact of the 26% “discounted” reciprocal tariff, with a senior official calling it “a mixed bag and not a setback for India,” according to The Economic Times. Meanwhile, Canadian Prime Minister Mark Carney, according to Reuters, vowed to “act with purpose and with force” in response.

U.S. futures markets plunged following the announcement, with the Dow Jones Industrial Average futures erasing nearly 830 points. Economists warned of severe consequences, with former Treasury Secretary Larry Summers estimating potential economic losses of up to $20 trillion.

Read Next:

• ‘Dr. Doom’ Nouriel Roubini: Trump’s ‘Liberation Day’ Tariff Label Is Orwellian Doublespeak, US ‘Playing With Fire’

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.