FirstFT: Trump threatens extra 50 per cent tariffs on China

Good morning and welcome again to FirstFT Asia, the place we’re following the continuing world market rout from Donald Trump’s tariffs. Additionally in at present’s e-newsletter:

• Jamie Dimon’s response to the commerce warfare

• The resignation of a high Honda government

• Can’t-miss meals at Japan’s konbinis

Donald Trump has threatened extra 50 per cent tariffs on China if Beijing doesn’t withdraw its retaliatory levies on Washington. The US president’s newest feedback on his commerce warfare got here on a day of acute volatility on Wall Road.

Trump’s risk: “If China does not withdraw its 34% increase above their already long term trading abuses by tomorrow, April 8th, 2025, the United States will impose ADDITIONAL Tariffs on China of 50%, effective April 9th,” Trump wrote on Reality Social yesterday.

The Trump administration hit China with 34 per cent in extra duties final week, stacked on high of the 20 per cent levies it had already imposed. In response, China elevated levies on US items by an extra 34 per cent. 

Hours later the US president mentioned he’s “not looking” at a pause in tariffs to permit for commerce negotiations and that “many countries” are reaching out to barter with US officers.

What are analysts saying?: Whereas the “situation is bad; it could be worse”, mentioned Cory Combs, affiliate director of Beijing-based consultancy Trivium China. Beijing has “strategically left itself space to continue ratcheting up retaliation”, holding again some firepower for negotiation because the commerce warfare escalates.

Wild swings on Wall Road: Trump’s risk to sharply increase duties on China got here on a day of excessive volatility in US markets. The blue-chip S&P 500 share index swung in a variety, however closed down solely 0.2 per cent. Apple, which is closely uncovered to China via its provide chains, dropped 3.7 per cent. The tech-heavy Nasdaq Composite ended the day up 0.1 per cent. Comply with the most recent market strikes on our reside weblog.

• Jamie Dimon weighs in: The JPMorgan Chase chief warned {that a} world commerce warfare dangers tipping the US economic system right into a recession and driving costs larger.

• Billionaire backlash: Financiers lambasted Trump’s wide-ranging tariffs for being set too excessive and applied too rapidly. BlackRock’s Larry Fink mentioned the US economic system was “weakening as we speak”, whereas hedge fund supervisor Invoice Ackman, a vigorous Trump supporter within the 2024 election, criticised a few of the president’s insurance policies.

• EU retaliation: Brussels will hit the US with 25 per cent tariffs on a variety of products in response to its duties on aluminium and metal, however has exempted bourbon, wine and dairy merchandise.

• Instantaneous Perception: Markets might get lots worse — and rapidly, writes Katie Martin. Right here’s how.

For extra evaluation on the tariffs, enroll for our Commerce Secrets and techniques e-newsletter should you’re a premium subscriber, or improve your subscription. Right here’s what else we’re retaining tabs on at present:

• Financial knowledge: Indonesia and Taiwan report March CPI inflation figures.

• Nato-Japan: Mark Rutte, secretary-general of the navy alliance, begins a two-day go to to Japan.

• Panama: US secretary of defence Pete Hegseth will go to as Washington will increase stress on the Central American nation for alleged Chinese language affect over its well-known canal.

5 extra high tales

1. A high Honda government has resigned abruptly after an allegation that he had engaged in inappropriate conduct throughout a social gathering. The exit of Honda’s quantity two government Shinji Aoyama comes as Japan grapples with a collection of different high-profile misconduct scandals involving enterprise leaders. Right here’s what we all know.

2. A $5.6bn Singaporean start-up will search banking licences within the UK and US, its chief government has mentioned. Company funds firm Airwallex, whose shoppers embody automobile racing group McLaren, hopes to broaden into lending and compete with world banks.

3. Trump has introduced the US would maintain direct talks with Iran on curbing Tehran’s nuclear programme, in a signal of attainable progress in one of many Center East’s most intractable issues. The US president’s feedback got here after talks with Israeli Prime Minister Benjamin Netanyahu which had touched on Iran, in addition to US tariffs on Israel and the warfare in Gaza.

• Center East warfare: Israel has stepped up air strikes on Lebanon and Syria alongside its renewed navy offensive in Gaza, widening assaults and pushing up tensions throughout the area.

4. The ECB is very prone to reduce borrowing prices subsequent week and once more in June, buyers and economists consider, as Trump’s sweeping tariffs threat pushing the bloc into recession. 1 / 4-point reduce in April and one other in June “have really become a no-brainer,” mentioned one analyst, who added that every other resolution can be “a disaster”.

5. The UK authorities has set out plans to water down guidelines for personal fairness and hedge funds by introducing a lighter regulatory regime for smaller teams to encourage extra funding. The Treasury introduced yesterday that it might elevate the scale threshold for which various asset managers are subjected to the principle guidelines for the sector. Learn the complete story.

The Huge Learn

Healthcare employees and officers say falsehoods and conspiracy theories are exacerbating inequalities and costing lives. At present’s Huge Learn explores the lack of belief in docs in an age of misinformation — and a triumphant instance from India of what could be achieved when the group is efficiently enlisted as a associate in countering false claims.

We’re additionally studying . . . 

• Trump’s tariffs considered from Japan: Leo Lewis in Tokyo stories how the impression of Trump’s tariffs dawned on buyers in Asia.

• Defending ‘Australianess’ within the Netflix age: Australia’s tv producers are pushing for a regulation to impose native content material quotas on streamers, writes Nic Fildes.

• The Trumpanos: The US president’s tariff warfare is revealing the weak spot of his mafia boss strategy to the world economic system, write Gideon Rachman.

Chart of the day

Trump’s new tariffs of 10 per cent to 49 per cent on clear vitality expertise from China, south-east Asia and Europe pose a one-two punch for an trade already reeling from the US president’s embrace of the fossil gas trade.

Take a break from the information . . . 

Japanese comfort shops are one-stop retailers for every little thing from garments to make-up to home goods. However it’s the meals that makes konbinis such important locations, writes Ajesh Patalay.