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Live updates: Asia shares sink as US tariffs take effect

Live updates: Asia shares sink as US tariffs take effect

newsnuzzleNews, Breaking News2 weeks ago62 Views

Asian shares sank again on Wednesday as the latest set of U.S. tariffs, including a 104% levy on Chinese imports, went into effect.

The sharply higher tariffs kicked in after midnight Eastern time in the U.S., even as investors have no idea what to make of President Donald Trump’s trade war.

On Tuesday, the S&P 500 dropped 1.6% after wiping out an early gain of 4.1%. That took it nearly 19% below its record set in February. The Dow Jones Industrial Average dropped 0.8%, while the Nasdaq composite lost 2.1%. Uncertainty is still high about what President Donald Trump will do with his trade war.

More swings up and down for financial markets are excepted given the uncertainty over how long Trump will keep the stiff tariffs on imports, which will raise prices for U.S. shoppers and slow the economy. If they last a long time, economists and investors expect them to cause a recession. If Trump lowers them through negotiations relatively quickly, the worst-case scenario might be avoided.

What to know:

Canada retaliates with 25% auto tariffs: Canada says it’s implementing retaliatory tariffs of its own just after midnight on Wednesday. The country will put a 25% tariff on auto imports from the United States that do not comply with the USMCA, the 2019 North American trade pact put into place during Trump’s first term.
China threatens to retaliate against Trump’s new tariffs: China said it would “fight to the end” and take countermeasures against the United States to safeguard its own interests after Trump threatened an additional 50% tariff on Chinese imports.
US trade rep says Trump tariffs are getting results: U.S. Trade Representative Jamieson Greer testified before the Senate Finance Committee that “about 50’’ countries have so far sought talks to escape Trump’s import tariffs. The import taxes are designed to reduce America’s massive trade deficits, but Greer conceded that the adjustment might ”be challenging at times.’’