Global market rout deepens as Trump’s ‘reciprocal’ tariffs kick in

Right now’s agenda: UK progress forecasts dip; visible story on China’s commerce dominance; the race to make humanoid robots; and Martin Wolf on Trump’s “utter lunacy”

Good morning. Donald Trump’s “reciprocal” tariffs on US buying and selling companions, together with a 104 per cent levy on Chinese language items, have taken effect. Right here’s what it’s good to know.

Market response: Equities in Hong Kong, Japan and Australia resumed their slide this morning. China allowed the renminbi to depreciate for a fifth straight day, pushing the forex to its weakest stage towards the greenback since September. US Treasuries, the greenback, inventory futures and oil costs fell in the present day simply earlier than the tariffs took impact.

Fallout widens: The extra tariffs might minimize China’s GDP progress this 12 months by 0.9 share factors, in response to Goldman Sachs. US executives warn the chaos is making it too risky to invest billions of {dollars} in constructing new American vegetation, regardless of Trump’s give attention to “reshoring”. Carmakers are additionally holding their inventory at US ports, resulting in a pile-up. Fitch has minimize its forecast for international automobile gross sales progress from 2.6 per cent to 2.2 per cent.

What’s subsequent? Trump has appointed Treasury secretary Scott Bessent to lead talks with some US allies, together with Japan and South Korea. Italy’s Prime Minister Giorgia Meloni is about to fulfill Trump in Washington subsequent week. However at the same time as they attempt to strike offers with him, some US buying and selling companions are already discussing amongst themselves tips on how to include the injury. The EU has referred to as for a “negotiated resolution” with China.

We’ll bring you the latest updates on our live blog. Right here’s extra evaluation:

• Keep brief on America: There isn’t any college of international coverage realism or commerce mercantilism that might explain Trump’s actions, writes Edward Luce.

• Elizabeth Warren: Republicans ought to be part of Democrats in Congress to fix the crisis attributable to Trump’s tariffs, writes the US senator.

• ‘Non-tariff weapons’: Nations are grappling with Washington’s makes an attempt to change “barriers” together with VAT, meals guidelines and even forex valuations.

For extra evaluation on the tariffs, sign up for our Commerce Secrets and techniques e-newsletter if you happen to’re a premium subscriber, or upgrade your subscription. Right here’s what else we’re maintaining tabs on in the present day:

• Financial information: The EU launches its new GDP calculation system, whereas the US Federal Reserve publishes minutes from its final rate-setting assembly.

• UK-India: Officers from each international locations participate in an financial and monetary dialogue in London.

• British Metal: Enterprise secretary Jonathan Reynolds is because of meet executives from the corporate’s Chinese language proprietor Jingye, because the UK considers nationalising the steelmaker.

Be part of Unhedged’s Robert Armstrong and different FT specialists on April 23 for a subscriber-only webinar, as they break down how Trump’s insurance policies are reshaping markets. Register for free.

5 extra prime tales

1. Trump’s commerce warfare has helped push UK progress prospects this 12 months down by a 3rd regardless that Britain is way much less uncovered to the US president’s levies than its largest companions. As economists think about weaker confidence and funding, here’s how much they expect GDP to grow this year.

2. One of many world’s best-known quantitative hedge funds has suffered steep losses from Trump’s tariffs, underscoring the tumult in monetary markets since his bulletins. Pc-driven Renaissance Applied sciences’ institutional fairness technique is down about 8 per cent for the month, shaving its good points for 2025 to 4.4 per cent. Read the full story.

3. Elon Musk lambasted the architect of Trump’s commerce warfare in probably the most public show so far of a possible rift between the US president and the world’s richest man. Musk, a long-standing critic of tariffs, referred to as commerce tsar Peter Navarro a “moron” and “dumber than a sack of bricks”.

4. Ukrainian forces have captured Chinese language fighters who have been supporting Russian troops in japanese Ukraine, Volodymyr Zelenskyy has mentioned. The president has demanded a proof from Beijing and accused it of aligning itself with Russia within the battle. This marks the first time Chinese citizens have been taken captive during the war.

5. The highest investor at Australia’s largest superannuation fund says the US will proceed to dominate its new investments regardless of market chaos attributable to tariffs, in a vote of confidence from some of the lively international traders on the earth’s largest financial system. AustralianSuper’s chief funding officer instructed the Monetary Occasions that the US was still attractive on a long-term basis.

Visible story

China’s domination of world commerce has led to a schism with the US and left many different international locations frightened about their industries being crushed by Beijing’s export machine. Our newest visible story explores how the nation’s document commerce surplus helped spark Trump’s tariff war.

We’re additionally studying . . . 

• Trump ‘bro-sphere’: The conservative podcasters who helped the US president get elected are being tested by the large fallout from his tariffs.

• Meloni and Africa: Amid criticism of hardball techniques to curb migration, Italy’s prime minister has launched a charm offensive on the continent.

• Humanoid robots: Cheaper parts, fast-paced innovation and Beijing-led financing have helped give China a head begin within the race to create lifelike bots.

• Rice disaster: The way forward for one of many world’s most necessary foodstuffs is mired in a stew of science, politics and economics, writes Anjana Ahuja

Chart of the day

The implicit assumption of Trump’s “reciprocal” tariffs is that in a good world, commerce would stability with each single accomplice. “This is utter lunacy”, writes Martin Wolf.

Take a break from the information . . . 

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