Global Trade & Retail Crisis Watch

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U.S. Stocks Plunge After Trump's Tariff Shock to Global Trade
by Steve Kopack, Rob Wile and Alexandra Byrne
April 2, 2025

Introduction:

(NBC) President Donald Trump's rollout of sweeping tariffs on virtually all U.S. imports shattered markets Thursday, as investors dealt an emphatic rebuke of his effort to reorder global trade.

As of late morning, trillions of dollars were wiped out as the S&P 500 tumbled more than 3.7%. The broad-based stock index is on track for its worst day since 2022. The Dow Jones Industrial Average fell 3.1%, or 1,300 points, and the tech-heavy Nasdaq plunged 4.8%. The Nasdaq is on pace for its worst day since the onset of the pandemic in 2020.

Retail stocks were some of the hardest hit Wednesday, as Trump’s tariffs on major manufacturing and exporting nations such as China could climb as high as 54%. Lululemon and Nike shares both plummeted by more than 11%, and Ralph Lauren lost nearly 16%.

It isn't just large multinational companies that investors are betting will take a hit from the tariffs. Small business are also expected to fare worse. The Russell 2000 Index, which tracks smaller publicly traded companies, was down 6.1%. It has now lost more than 20% since its peak in November.

The turmoil is a harsh early verdict on a U.S. trade agenda that had already unsteadied investors, corporate executives, consumers and retirement savers even before Trump's announcement at the White House Rose Garden.

Read more of the article here: https://www.nbcnews.com/business/marke ... na199476

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China to impose 34% retaliatory tariff on all goods imported from the U.S.

Source: CNBC

Published Fri, Apr 4 2025 6:22 AM EDT | Updated 3 Min Ago


China’s finance ministry on Friday said it will impose a 34% tariff on all goods imported from the U.S. starting on April 10, following duties imposed by U.S. President Donald Trump’s administration earlier this week, according to state news outlet Xinhua.

“China urges the United States to immediately cancel its unilateral tariff measures and resolve trade differences through consultation in an equal, respectful and mutually beneficial manner,” Xinhua cited the finance ministry as saying in a Google-translated report.

The ministry further criticized Washington’s decision to impose 34% of additional reciprocal levies on China — bringing total U.S. tariffs against the country to 54% — as “inconsistent with international trade rules” and “seriously” undermining Chinese interests, as well as endangering “global economic development and the stability of the production and supply chain.”

CNBC has reached out to the White House for comment.

Read more: https://www.cnbc.com/2025/04/04/china-t ... he-us.html

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Canada to counter ‘unjustified’ US tariffs with 25% taxes on US cars, says Carney

Canadian prime minister says country will impose taxes on US vehicles not compliant with continental free trade deal

Leyland Cecco in Toronto
Thu 3 Apr 2025 18.12 BST
Last modified on Thu 3 Apr 2025 18.43 BST

Canada will retaliate against “unjustified, unwarranted” tariffs imposed by the United States with a 25% tax on US vehicles, says Mark Carney.

On Wednesday, Donald Trump announced wide-ranging tariffs on dozens of countries, but did not add new trade levies to Canada or Mexico. Despite the reprieve, however, the US has placed 25% taxes on Canadian steel, aluminum and vehicles.

“The president’s actions will reverberate here in Canada and across the world,” the Canadian prime minister said at a press conference. “They are all unjustified, unwarranted, and in our judgment misguided.”

In response to US trade policy, Carney said his government would impose the taxes on vehicles that are not compliant with the continental free trade deal. The new tariffs would not apply to auto parts and would not affect vehicle content from trade ally Mexico.

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Read more: https://www.theguardian.com/world/2025/ ... s-cars-tax

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U.S. stock market has wiped out $9.6 trillion since Inauguration Day

U.S. stocks have had a rough go of it since President Donald Trump was sworn into office for his second term in January.

Since Jan. 17, the Friday before Inauguration Day, the U.S. stock market has seen $9.6 trillion in value erased, according to data from FactSet and Dow Jones Market Data. Of those losses, $5 trillion has been erased just over the past two days -- the largest two-day loss on record.

Major equity indexes were seeing their losses deepen in early trading on Friday. The Dow was down by more than 1,200 points in recent trading, bringing its losses since the market opened on Thursday to nearly 3,000 points.

The S&P 500 was down by 3.6%, while the Nasdaq Composite was off by 3.8%, leaving it on the cusp of bear-market territory. The Russell 2000 has fallen by another 4.1% since it became the first major U.S. equity index to enter bear-market territory on Thursday.

https://www.marketwatch.com/livecoverag ... eUhbOGt2Wy

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Nasdaq 100 Sinks Into Bear Market as Trump Tariffs Spark Rout

Source: Bloomberg

April 4, 2025 at 10:35 AM EDT
Updated on April 4, 2025 at 4:10 PM EDT

The Nasdaq 100 plunged into a bear market with its losses from a February high surging past 20% as investors ditch once high-flying tech shares in a broad market rout.

The six-week selloff has wiped out roughly $6.4 trillion from the tech-heavy benchmark since its peak, spurred by worries President Donald Trump’s tariffs will push the US economy into recession. The market value destruction has been biggest in the likes of Apple Inc. and Nvidia Corp., companies whose worth swelled past $3 trillion on optimism about artificial intelligence. Apple, the last of the $3 trillion holdouts, closed on Friday with a market value of $2.8 trillion.

Over the slide, chipmakers Broadcom Inc. and Micron Technology Inc. have fallen more than 35%, while popular AI plays like Marvell Technology Inc. and Constellation Energy plunged at least 45%. Bloomberg’s Magnificent 7 index is off 25%, while Airbnb Inc. and Dexcom Inc. have tumbled more than 30%.

Even with the more than 20% pullback, the index’s components remain expensive relative to history, with a price-to-earnings ratio still above the average over the past two decades. For bulls, that’s a worrisome sign if a recession is in the offing.

Read more: https://www.bloomberg.com/news/articles ... ear-market

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China not backing down as fresh US tariff threat pushes tensions to the brink

Source: Reuters

BEIJING, April 8 (Reuters) - China vowed on Tuesday to "fight to the end" if President Donald Trump follows through on a threatened 50% tariff hike, rejecting calls to drop its countermeasures and setting the stage for a high-stakes standoff between the world's top two economies.

If neither side backs down, total new U.S. levies on Chinese goods this year could rise to 104% by Wednesday, putting pressure on Beijing to respond as Chinese President Xi Jinping prepares to meet Spanish Prime Minister Pedro Sanchez ahead of a tour of Southeast Asia with global supply chains in jeopardy.

But with Trump's previous tariff increases already squeezing Chinese exporters' margins to the point of suffocation, further hikes would only serve to underscore Washington's appetite for brinkmanship and its desire to cut China out of the world's biggest consumer market as a matter of principle, analysts say.

"The U.S. side's threat to escalate tariffs against China is a mistake on top of a mistake, once again exposing the American side's blackmailing nature," China's commerce ministry said in a statement.

Read more: https://www.reuters.com/world/china-say ... 025-04-08/

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European Union Slaps 25% Tariffs On United States In Retaliation

Source: Meidas Touch

The European Commission has announced a new wave of counter-tariffs in retaliation to the United States' escalating protectionist measures under President Donald Trump. A document obtained by Reuters reveals that Europe will impose 25% tariffs on a broad range of American goods, with the first wave set to take effect on May 16, and a second round scheduled for December 1.

The move is a direct response to the Trump administration's earlier decision to slap 25% tariffs on imported steel and aluminum—policies that have already begun to ripple across global markets and strain diplomatic ties.

In a dramatic development, Donald Trump declared all talks with China "terminated" unless tariffs are fully repealed, signaling a hardening stance on trade and a potential derailment of already-stalled negotiations with Beijing.

Meanwhile, American consumers could soon feel the pinch at the dealership. A fresh analysis from Cox Automotive warns that both imported and domestically manufactured vehicles will see steep price hikes, as the administration’s 25% tariffs on auto imports—and soon, auto parts—take hold.

Read more: https://meidasnews.com/news/european-un ... etaliation

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Treasury Secretary Bessent says China's escalation was 'big mistake,' country playing with 'losing hand'

Source: CNBC

Published Tue, Apr 8 2025 7:22 AM EDT Updated 5 Hours Ago


Treasury Secretary Scott Bessent said Tuesday the U.S. holds a substantial advantage over China as the two nations exchange threats in a burgeoning trade war.

“I think it was a big mistake, this Chinese escalation, because they’re playing with a pair of twos,” Bessent said during an interview on CNBC’s “Squawk Box.” “What do we lose by the Chinese raising tariffs on us? We export one-fifth to them of what they export to us, so that is a losing hand for them.”

The comments come a day ahead of the U.S. raising its duties on China and dozens of other nations as part of so-called reciprocal tariffs whose purpose, Bessent said, is to bring trading partners to the negotiating table and jobs back to the U.S.

So far, he said Japan has been at the forefront of countries eager to negotiate, and the White House expects a multitude of others.

Read more: https://www.cnbc.com/2025/04/08/treasur ... -hand.html

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China slaps retaliatory tariffs of 84% on U.S. goods in response to Trump

Source: CNBC

Published Wed, Apr 9 2025 7:09 AM EDT Updated 3 Min Ago

China has pushed back once again to U.S. President Donald Trump’s tariff policies by hiking its levies on U.S. imports to more than 80%. China’s Office of the Tariff Commission of the State Council said tariffs on U.S. goods will rise to 84% from 34% starting on April 10, according to a translation of the announcement. This comes after the latest U.S. tariff hike — which brings levies on Chinese goods to more than 100% — took effect at the start of April 9.

The repeated escalation of the tariffs threatens to bring trade between two of the world’s most important economies to a standstill. 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 $438.9 billion of goods.

The Trump administration announced a sweeping new tariff policy last week, and warned 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%.

“I think 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 said to 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.”

Read more: https://www.cnbc.com/2025/04/09/china-s ... trump.html

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https://www.cnbc.com/2025/04/11/china-s ... il-12.html

China strikes back with 125% tariffs on U.S. goods as trade war intensifies
Published Fri, Apr 11 2025 4:12 AM EDT

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.”

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China Halts Critical Exports as Trade War Intensifies

China has suspended exports of a wide range of critical minerals and magnets, threatening to choke off supplies of components central to automakers, aerospace manufacturers, semiconductor companies and military contractors around the world.

Shipments of the magnets, essential for assembling everything from cars and drones to robots and missiles, have been halted at many Chinese ports while the Chinese government drafts a new regulatory system. Once in place, the new system could permanently prevent supplies from reaching certain companies, including American military contractors.

The official crackdown is part of China’s retaliation for President Trump’s sharp increase in tariffs that started on April 2.

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https://www.nytimes.com/2025/04/13/busi ... ports.html

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Billionaire hedge fund leader warns US facing something 'worse than a recession'

Source: The Independent

Sunday 13 April 2025 18:33 BST


The U.S. is perilously close to entering a formal economic recession and could well be facing something much worse on the horizon, a billionaire investing expert warned Sunday. Ray Dalio, founder of Bridgewater Associates, appeared on NBC’s Meet the Press, where he warned that the “disruptive” nature of Donald Trump’s tariff announcements were causing market instability and was making it difficult for both U.S. business and global trading partners to rely on the America.

A Wall Street veteran who predicted the collapse of the housing bubble in 2008 which caused a financial crisis that year, Dalio told NBC’s Kristen Welker that the chance of stopping “something that is much worse than a recession” came down to how strategically the White House handled what the president’s advisers have explained is his end goal: a grand reorganization of the global trade structure.

“We are having profound changes in our domestic order [...] and we're having profound changes in the world order. Such times are very much like the 1930s,” said Dalio.

“So if you take tariffs, if you take debt, if you take the rising power challenging existing power, if you take those factors and look at the factors - those changes in the orders, the systems, are very, very disruptive,” he continued. “How that's handled could produce something that is much worse than a recession. Or it could be handled well.”

Read more: https://www.independent.co.uk/news/worl ... 32517.html
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[weatheriscool]

Trump's auto tariffs expected to cost industry over $100 billion, with millions fewer cars sold

Source: The Independent

Saturday 12 April 2025 23:33 BST

Despite the on-off nature of President Donald Trump’s tariffs on U.S. trading partners, among those that still stand is the 25 percent import tax on imported vehicles that went into effect on April 3. Wall Street and automotive industry analysts foresee massive global implications for the industry if these tariffs remain in place, with vehicle sales plummeting by millions as prices for both new and used cars surge, according to reporting by NBC News.

Research reports put the increase in costs for the automotive industry due to Trump’s tariffs in the region of $100 billion, with Boston Consulting Group putting the upper range at $160 billion for both U.S. and non-U.S. manufacturers. “What we’re seeing now is a structural shift, driven by policy, that’s likely to be long-lasting,” Felix Stellmaszek, BCG’s global lead of automotive and mobility, told CNBC.

“This may well be the most consequential year for the auto industry in history — not just because of immediate cost pressures, but because it’s forcing fundamental change in how and where the industry builds.”

In the U.S. alone, automakers could see costs increase by $107.7 billion, according to the Michigan-based think tank, the Center for Automotive Research. That figure includes $41.9 billion for the big three U.S. automakers — General Motors, Ford, and Stellantis, the parent company of Chrysler.

Read more: https://www.independent.co.uk/news/worl ... 32283.html

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China Orders Boeing Jet Delivery Halt as Trade War Expands
https://www.bloomberg.com/news/articles ... -trade-war

China has ordered its airlines not to take any further deliveries of Boeing Co. jets as part of the tit-for-tat trade war that’s seen US President Donald Trump levy tariffs of as high as 145% on Chinese goods, according to people familiar with the matter.

Beijing has also asked that Chinese carriers halt any purchases of aircraft-related equipment and parts from US companies, the people said, asking not to be identified discussing matters that are private.

The order came after China unveiled retaliatory tariffs of 125% on American goods this past weekend, the people said. Those levies on their own would have more than doubled the cost of US-made aircraft and parts, making it impractical for Chinese airlines to accept Boeing planes.
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Shares of the US planemaker slid as much as 4.6% in premarket trading after Bloomberg News reported on the Chinese move. Through Monday, Boeing shares had declined 10% this year.

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[weatheriscool]

This is massive! China now faces up to a 245% tariff on exports to the U.S. as a result of its retaliatory actions...

The US-China trade war has intensified as the United States has now imposed 245% tariffs on imports from China after its retaliatory actions against the US, according to a White House statement. The US president Donald Trump has also signed an Executive Order to investigate the national security risks caused due to the US' dependence on imported processed critical minerals and their derivative products.

Read more at:
https://economictimes.indiatimes.com/ne ... aign=cppst

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Trump tariffs will send global trade into reverse this year, warns WTO
https://www.theguardian.com/us-news/202 ... -warns-wto

Donald Trump’s tariffs will send international trade into reverse this year, depressing global economic growth, the World Trade Organization has warned.

In its latest snapshot of the global trading system, the Geneva-based institution says it had previously expected goods trade to expand by a healthy 2.7% this year. As a result of Washington’s trade policy, it is now forecasting a 0.2% decline.

Presenting the forecasts, the WTO’s director general, Ngozi Okonjo-Iweala, said she was particularly concerned about the “decoupling” of the US and China, calling it “a phenomenon that is really worrying to me”.

She said trade between the two geopolitical rivals was expected to plunge by 81-91% without exemptions for tech products such as smartphones – saying this was “tantamount to a decoupling of the two economies” and would have, “far-reaching consequences”.

[weatheriscool]

Temu and Shein will raise prices for US customers due to Trump's tariffs

Source: AP

Updated 7:18 PM EDT, April 16, 2025

NASHVILLE, Tenn. (AP) — China-founded e-commerce sites Temu and Shein say they plan to raise prices for U.S. customers starting next week, a ripple effect from President Donald Trump’s attempts to correct the trade imbalance between the world’s two largest economies by imposing a sky-high tariff on goods shipped from China.

Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, which is now based in Singapore, said in separate but nearly identical notices that their operating expenses have gone up “due to recent changes in global trade rules and tariffs.”

Both companies said they would be making “price adjustments” starting April 25, although neither provided details about the size of the increases. It was unclear why the two rivals posted almostidentical statements on their shopping sites. Since launching in the United States, Shein and Temu have given Western retailers a run for their money by offering products at ultra-low prices, coupled with avalanches of digital or influencer advertising.

The 145% tariff Trump slapped on most products made in China, coupled with his decision to end a customs exemption that allows goods worth less than $800 to come into the U.S. duty-free, has dented the business models of the two platforms.

Read more: https://apnews.com/article/temu-shein-p ... b8a94eea67

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'I'm not even sure it's legal': New York farmer in disbelief at Trump tariffs imposed on critical cow feed

Nicholas Gilbert, a dairy farmer who operates Adon Farms in upstate New York, experienced tariff sticker shock when a routine shipment of cow feed from Ontario cost him $2,200 more than expected.

“I’m not even sure it’s legal! We contracted for the price on delivery,” he told The Atlantic. “If your price of fuel goes up or your truck breaks down, that’s not my problem! That’s what the contract’s for.”

Unfortunately for Gilbert, the tariff is very much legal. Like many American business owners, he mistakenly believed that tariffs on imported goods would be paid by the foreign exporter.

In reality, the charge was imposed by U.S. Customs and Border Protection and passed directly to him.

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"How can an adult believe that the president of one country could force an exporter in another country to pay a tax on his or her behalf? How would that even work?" says one user.

More at:

https://finance.yahoo.com/news/im-not-e ... 00861.html