By Elaine Kurtenbach, Associated Press Business Writer
BANGKOK (AP) — Global stocks fell on Wednesday after President Donald Trump’s latest tariff hikes came into effect and he threatened to add more.
There is increasing uncertainty about what Trump will do next in his trade war. In a speech Tuesday night, he said he plans to plan tariffs on drugs so that more drugs can be made in the US.
The European market has extended its losses. German DAX slipped 2.5% to 19,762.13. In Paris, the CAC 40 fell 2.6% to 6,917.13. The UK FTSE 100 gave up 2.6% from 7,704.82.
Trump’s latest tariffs include a massive 104% collection of US imports of Chinese goods, but the Chinese market overturned early losses and acquired its position on Wednesday.
Large share buybacks by large state investment funds and other state companies directed to support the market during times of crisis helped raise stock prices. Investors also hope that the government will step up spending and other measures to combat the impact of tariffs.
Beijing published a policy paper on Wednesday repeatedly on China’s right to protect businesses with unspecified measures, but emphasized that solving trade issues through dialogue is a preference.
The paper also argued that economic exchanges between the two countries are “a roughly balanced” given the services in China and the operation of US companies.
Hong Kong’s Hangsen rose 0.7%, while Shanghai’s combined index rose 1.3%.
Thailand’s benchmark has also risen. Obviously, it’s due to speculation that Beijing may be preparing to prepare talks with the Trump administration. Unconfirmed rumors helped to raise the future of the S&P 500 by 0.3%, but the future of the Dow was unchanged.
Elsewhere, the market remained pessimistic. Japan’s Japan 225 was closed 3.9% lower at 31,714.03, and Prime Minister Istauba convened a meeting of the best finance ministers, repeating his call to do what they can to do to reduce the damages from tariffs on Japanese automakers and other manufacturers.
Taiwan led Asia’s losses, with its Taiex plunging 5.8%. The major technology industry was one of the biggest withdrawals. Computer chip giant TSMC Corp. fell 3.8%, while iPhone maker Hon Hai Precision Industry plummeted 10%.
In India, Sensex fell 0.5% as central banks reduced benchmark interest rates, while Bangkok’s set fell 0.8%.
South Korea’s Kospi lost 1.7% at 2,293.70, and the government said it would provide help to the troubled automakers. Australia’s S&P/ASX 200 fell 1.8% to 7,375.00. New Zealand stocks also fell.
On Tuesday, the S&P 500 dropped by 1.6% after sweeping out its early gain of 4.1%. This brings it to nearly 19% below the 19% record set in February. The Dow Jones industrial average fell by 0.8%, while Nasdaq’s composite lost 2.1%.
Stocks were gathering worldwide on Tuesday, with the index rising 6% in Tokyo, 2.5% in Paris and 1.6% in Shanghai. Optimism or purchasing enthusiasm seemed to have dissipated by the time the sudden, high tariffs became a reality.
Analysts say the market will suffer more shaking if it is given uncertainty about how long Trump will maintain strict tariffs on imports. If they last, economists and investors hope they will cause a recession. If Trump lowers them through negotiations relatively quickly, the worst-case scenario could be avoided.
Hope is still on Wall Street and may be negotiable, which will help drive morning rally. Trump said Tuesday that conversations with the South Korean representative president helped them reach “the range and probability of both countries.”
Trump’s trade war was an attack on globalization that helped shape the global economy and lower the prices of products on store shelves, and also led to manufacturing jobs leaving other countries. Trump says he wants to narrow down the trade deficit, which measures how much the US imports from other countries rather than sending it to them as exports.
Other deals earlier on Wednesday saw US benchmark crude falling from $2.43 per barrel to $57.15. International standard, Brent crude oil, flowed between $2.47 and $60.35 per barrel.
The US dollar fell from 146.29 yen to 145.22 yen. The euro rose from $1.0995 to $1.1036.
Gold prices rose from $72 per ounce to $3,062.
Original issue: April 9, 2025, 7:41am EDT
