The United States said on Tuesday that 104% duties on imports from China will take effect shortly after midnight, even as the administration of President Donald Trump moved to quickly start talks with other trading partners targeted by sweeping tariffs.
U.S. stocks dropped on Tuesday for a fourth straight trading day since Trump's tariffs announcement last week, with the S&P 500 closing below 5,000 for the first time in almost a year.
The index is now 18.9% below its most recent high on February 19, close to the 20% decline that defines a bear market.
Global markets had previously posted gains on hopes that Trump might be willing to negotiate down the array of country and product-specific trade barriers he is erecting around the world's largest consumer market.
Japan's Nikkei saw a broad sell-off on Wednesday morning and other Asian markets were braced for falls, hours before the tariffs were set to take effect.
The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.
"These are tailored, highly tailored deals," Trump said at a White House event, where he signed executive orders aimed at boosting coal production. "We've had talks with many, many countries, over 70, they all want to come in. Our problem is, can't see that many that fast."
But the White House made clear that country-specific tariffs of up to 50% would nevertheless take effect at 12:01 a.m. Eastern Time (0401 GMT), as planned.
Those tariffs will be especially steep for China, as Trump has ratcheted up duties on its imports to 104% in response to countertariffs Beijing announced last week. China has refused to bow to what it called blackmail and has vowed to fight to the end.
Administration officials said they would not prioritize negotiations with the world's No. 2 economic power.
"Right now, we've received the instruction to prioritize our allies and our trading partners like Japan and Korea and others," White House economic adviser Kevin Hassett said on Fox News
[Reuters]
U.S. stocks dropped on Tuesday for a fourth straight trading day since Trump's tariffs announcement last week, with the S&P 500 closing below 5,000 for the first time in almost a year.
The index is now 18.9% below its most recent high on February 19, close to the 20% decline that defines a bear market.
Global markets had previously posted gains on hopes that Trump might be willing to negotiate down the array of country and product-specific trade barriers he is erecting around the world's largest consumer market.
Japan's Nikkei saw a broad sell-off on Wednesday morning and other Asian markets were braced for falls, hours before the tariffs were set to take effect.
The administration has scheduled talks with South Korea and Japan, two close allies and major trading partners, and Italian Prime Minister Giorgia Meloni is due to visit next week.
"These are tailored, highly tailored deals," Trump said at a White House event, where he signed executive orders aimed at boosting coal production. "We've had talks with many, many countries, over 70, they all want to come in. Our problem is, can't see that many that fast."
But the White House made clear that country-specific tariffs of up to 50% would nevertheless take effect at 12:01 a.m. Eastern Time (0401 GMT), as planned.
Those tariffs will be especially steep for China, as Trump has ratcheted up duties on its imports to 104% in response to countertariffs Beijing announced last week. China has refused to bow to what it called blackmail and has vowed to fight to the end.
Administration officials said they would not prioritize negotiations with the world's No. 2 economic power.
"Right now, we've received the instruction to prioritize our allies and our trading partners like Japan and Korea and others," White House economic adviser Kevin Hassett said on Fox News
[Reuters]
